Student Loans: Selected Characteristics of Schools in Two Major Federal
Loan Programs (Letter Report, 01/31/97, GAO/HEHS-97-45).

Federal support for student financial aid totaled about $35 billion in
fiscal year 1995. Most of this aid--$27 billion--was provided through
student loans. Eligible postsecondary institutions can choose to give
students access to federally supported loans through either the William
D. Ford Federal Direct Loan Program or the Federal Family Education Loan
Program. This report provides information on comparative levels of
activity in the two programs. Legislation requires the Federal Direct
Loan Program to provide five percent of federal student loans during
school year 1994-95, increasing to at least 60 percent by school year
1998-99. GAO discusses (1) the number of schools in each program and the
distribution of student loans between the two, (2) the loan default rate
for schools associated with each program, and (3) the number of schools
in each program on a state-by-state basis and among the 100 largest
postsecondary schools participating in these federal loan programs.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  HEHS-97-45
     TITLE:  Student Loans: Selected Characteristics of Schools in Two 
             Major Federal Loan Programs
      DATE:  01/31/97
   SUBJECT:  Student loans
             Colleges/universities
             Proprietary schools
             Higher education
             Loan defaults
             Government guaranteed loans
             Direct loans
IDENTIFIER:  William D. Ford Federal Direct Loan Program
             Federal Family Education Loan Program
             Dept. of Education Postsecondary Education Participants 
             System
             
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Cover
================================================================ COVER


Report to the Chairman, Committee on the Budget, House of
Representatives

January 1997

STUDENT LOANS - SELECTED
CHARACTERISTICS OF SCHOOLS IN TWO
MAJOR FEDERAL LOAN PROGRAMS

GAO/HEHS-97-45

FDLP and FFELP Schools

(104873)


Abbreviations
=============================================================== ABBREV

  FDLP - Federal Direct Loan Program
  FFELP - Federal Family Education Loan Program

Letter
=============================================================== LETTER


B-275721

January 31, 1997

The Honorable John R.  Kasich
Chairman, Committee on the Budget
House of Representatives

Dear Mr.  Chairman: 

Federal support for student financial aid contributed about $35
billion to postsecondary education in fiscal year 1995.  Most of this
aid--$27 billion--
was provided through student loans, authorized under the Higher
Education Act of 1965, as amended.  Eligible postsecondary
institutions can choose to give students access to federally
supported loans through either the William D.  Ford Federal Direct
Loan Program (FDLP) or the Federal Family Education Loan Program
(FFELP).\1 The Omnibus Budget Reconciliation Act of 1993 (P.L. 
103-66, Aug.  10, 1993) called for FDLP to provide 5 percent of
federal student loans during school year 1994-95, increasing to at
least 60 percent by school year 1998-99. 

You asked us to provide information about comparative levels of
activity in the two programs.  As agreed with your staff, we
determined the following: 

  -- the number of schools in each program, and the distribution of
     student loans between the two;

  -- the loan default rate for schools associated with each program;
     and

  -- the number of schools in each program (1) on a state-by-state
     basis and (2) among the 100 largest postsecondary schools
     participating in these federal loan programs. 

Our review was based on computer analysis of records for all
postsecondary schools obtained from the Department of Education. 
Although we did not verify the accuracy of data obtained from the
Department, its databases are readily available and can by used by
the education community for similar analyses.  For more explanation
of our scope and methodology, see appendix I. 


--------------------
\1 Under FDLP, loans are made by schools on behalf of the government
with federal funds.  Under FFELP, students receive loans from private
lenders, such as banks, with the Department of Education ensuring
that the lender will receive payment. 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

As of October 1996, 1,622 schools were in FDLP (that is, about 26
percent of schools participating in either of the federal loan
programs).  While many of these schools in FDLP were also in FFELP,
the remaining 74 percent of all schools were solely in FFELP.  Public
4-year and proprietary schools were the most represented kind of
schools in FDLP; 42 and 41 percent of them, respectively, were chosen
by the Department to be in the program.  The percentage of federal
student loan volume provided by FDLP was 7 percent in school year
1994-95 and 30 percent in school year 1995-96. 

Not enough time has elapsed for loan default information to be
available for FDLP.  For FFELP, a comparison of default rates for
schools that used both programs and schools that used FFELP
exclusively showed that rates were similar.  For schools in FDLP, the
FFELP default rate was 10.2 percent for the fiscal year 1993 cohort
year; for schools only in FFELP, the rate was 9.9 percent. 

Every state has schools in FDLP, although the proportion of schools
in the program varies considerably.  Thirteen states had more than
half of their fiscal year 1995 loan volume at FDLP schools, while 17
states had less than 25 percent.  The 100 largest schools--a list
that primarily includes 4-year public schools but also includes some
community colleges and private 4-year schools--were evenly divided as
to whether they were in FDLP.  Fifty schools were in FDLP; 50 were
not. 


   BACKGROUND
------------------------------------------------------------ Letter :2

Eligible postsecondary institutions can choose to give students
access to federally supported loans through FFELP or FDLP.\2 Through
FFELP, lenders, mostly from the private sector, make loans to
eligible borrowers, and state-designated guaranty agencies guarantee
the loans against borrower default.  In contrast, FDLP, originally
authorized under the Higher Education Amendments of 1992, was
established, in part, to simplify the student loan process by
eliminating private sector lenders and guaranty agencies.  Under
FDLP, the government makes the loans, but the schools or Department
of Education contractors actually disburse the funds on behalf of the
government. 

The 1993 legislation called for FDLP to be phased in over 5 years,
beginning with FDLP loans representing 5 percent of total new loans
during year 1 (July 1, 1994, through June 30, 1995) and rising to 60
percent or more in year 5 (July 1, 1998, through June 30, 1999).  The
Department is responsible for implementing and administering FDLP and
for selecting private contractors for the day-to-day servicing of
loans. 


--------------------
\2 Schools can make FDLP loans to some students and allow other
students to obtain loans through FFELP, but a student may not receive
both an FDLP loan and an FFELP loan for the same period of
enrollment. 


   NUMBER OF FDLP AND FFELP
   SCHOOLS AND THEIR LOAN VOLUMES
------------------------------------------------------------ Letter :3

As of October 1996, 1,622 schools were in FDLP (that is, about 26
percent of all FDLP and FFELP schools).  These included 354 schools
that entered FDLP in year 3 (July 1, 1996, through June 30, 1997). 
As table 1 shows, a larger percentage of proprietary\3 and public
4-year schools were in FDLP than 4-year private and less-than-4-year
public and private schools. 

For the purposes of our analysis, "FDLP schools" are those that the
Department expected to participate as of October 1996.\4 Most of
these schools were also FFELP participants, providing FFELP loans to
some students and FDLP loans to others.  "FFELP schools" are those
that the Department listed as FFELP participants\5 as of October 1996
but that were not listed by the Department as "FDLP schools."



                          Table 1
          
           Types of Schools in FDLP and FFELP, as
                      of October 1996

                                              FDLP schools
                            FDLP                      as a
                        schools\     FFELP   percentage of
Type of school                 a   schools     all schools
----------------------  --------  --------  --------------
Public 4-year                245       335             42%
Private 4-year               241     1,192              17
Public less-than-4-          170     1,345              11
 year
Private less-than-4-          52       477              10
 year
Proprietary                  914     1,341              41
==========================================================
Total                      1,622     4,690             26%
----------------------------------------------------------
Note:  For further details, see table II.1 in appendix II. 

\a Schools may also be providing FFELP loans. 

Although table 1 indicates that fewer 4-year schools than proprietary
schools are participating in FDLP, 4-year schools accounted for most
of the volume of loans for both FDLP and FFELP schools.  As shown in
figure 1, public 4-year schools accounted for the largest share of
loans at FDLP schools; private 4-year schools accounted for the
largest share at FFELP schools. 

   Figure 1:  Fiscal Year 1995
   Loan Volume for Schools in FDLP
   and FFELP, as of October 1996

   (See figure in printed
   edition.)

As of October 1996, schools that accounted for 38 percent of loan
volume in fiscal year 1995 were in FDLP in year 3.\6 As shown in
table 2, schools accounting for nearly half of public 4-year school
loan volume in fiscal year 1995 were in FDLP during year 3.  In
contrast, schools accounting for less than one-quarter of private
4-year school loan volume in fiscal year 1995 were in the program's
third year. 



                          Table 2
          
          Fiscal Year 1995 Loan Volume for Schools
           in FDLP and FFELP, as of October 1996

                   (Dollars in millions)

                 Loans
                    to

              students    Loans to             FDLP school
               at FDLP    students     Total   volume as a
Type of       schools\    at FFELP      loan    percentage
school               a     schools  volume\b    of total\c
------------  --------  ----------  --------  ------------
Public 4-       $5,749      $5,904   $11,652           49%
 year
Private 4-       2,440       7,614    10,054            24
 year
Public less-       335       1,039     1,373            24
 than-4-
 year
Private             74         204       278            26
 less-than-
 4-year
Proprietary      1,218       1,139     2,357            52
==========================================================
Total\b         $9,815     $15,900   $25,715           38%
----------------------------------------------------------
\a Includes FDLP and FFELP loans to students at FDLP schools.  Table
II.2 in appendix II shows the amounts of each type of loan for these
schools. 

\b The sum of figures may not equal the total shown because of
rounding. 

\c Numbers may not equal the percentage of the figures shown because
of rounding. 

See tables II.3 through II.5 in appendix II for details concerning
schools selected to begin participating during year 3. 

During year 1, FDLP loans accounted for 7 percent of total FDLP and
FFELP loans.  During year 2, FDLP provided about 30 percent of total
loans.  As shown in figure 2, loans to students at 4-year public
schools represented the largest portion of FDLP volume in both years. 

   Figure 2:  Comparison of FDLP
   and FFELP Loan Volume During
   FDLP's First 2 Years

   (See figure in printed
   edition.)

Note:  For data supporting figure 2 and additional data such as FDLP
volume as a percentage of total volume for each type of school, see
tables II.6 and II.7 in appendix II. 

Many of the schools participating in FDLP during year 2 continued to
participate, to some extent, in FFELP.  Most of the loans made to
students at year 2 schools, however, were FDLP loans, ranging from 67
percent at private less-than-4-year schools to 92 percent at public
less-than-4-year schools (see details in table II.8 in app.  II). 


--------------------
\3 Proprietary schools are private, for-profit postsecondary
institutions. 

\4 These schools had applied to participate in FDLP, were determined
to be eligible, had not indicated their intent to withdraw from or
defer participation in FDLP, and had neither closed nor been
terminated by the Department. 

\5 These were listed in the Department's Postsecondary Education
Participants System as FFELP participants, but may or may not have
students that have received FFELP loans. 

\6 Loan volumes presented in this report are amounts of loan
commitments before cancellations.  They are not and should not be
construed as estimates of current or future loan volume.  (See app. 
I.)


   DEFAULT RATES OF FDLP AND FFELP
   SCHOOLS
------------------------------------------------------------ Letter :4

Aggregate default rates for FDLP and FFELP schools were similar (see
fig.  3).  Because default rate data were not yet available for FDLP,
we made our analysis for schools that are in FDLP based on their
FFELP default rates.  For schools participating in FDLP as of October
1996, 10.2 percent of students that entered their repayment period
for FFELP loans during fiscal year 1993 defaulted by the end of
fiscal year 1994 (commonly referred to as the fiscal year 1993 cohort
default rate\7 ).  For schools continuing to participate only in
FFELP, the default rate was 9.9 percent.  Although the FFELP rate was
somewhat lower, the aggregate default rate for FFELP proprietary
schools was higher than for proprietary schools that participated in
FDLP. 

   Figure 3:  FFELP Default Rates
   for FDLP and FFELP Schools,
   1993 Cohort Year

   (See figure in printed
   edition.)

Note:  Data supporting this figure, and similar data for cohort
fiscal years 1991 and 1992, are found in table II.9 in appendix II. 


--------------------
\7 Generally, the statutory cohort default rate is (1) the number of
student borrowers with subsidized and unsubsidized loans that entered
repayment in a cohort fiscal year and defaulted on those loans by the
end of the following fiscal year, divided by (2) the total number of
borrowers that entered repayment in the cohort fiscal year.  In cases
in which fewer than 30 borrowers entered repayment, the rate used is
an average for a 3-year period. 


   FDLP PARTICIPATION BY STATE AND
   AMONG THE 100 LARGEST SCHOOLS
------------------------------------------------------------ Letter :5

Although FDLP schools were located in all 50 states, participation in
FDLP varied widely by state.  As shown in figure 4, FDLP schools as
of October 1996 represented 50 percent or more of fiscal year 1995
loan volume in 13 states but less than a quarter of loan volume in 17
states. 

See tables II.10 and II.11 in appendix II for data for each state. 

   Figure 4:  FDLP Schools' Share
   of Fiscal Year 1995 Loan Volume

   (See figure in printed
   edition.)

Of the 100 schools with the largest preliminary fall 1995 enrollments
that were eligible to participate in either of the two student loan
programs as of October 1996, 50 were FDLP participants and 50 were
not.  As shown in figure 5, most of these were public 4-year schools,
including 40 FDLP participants and 34 FFELP participants. 

The 100 schools are listed in table II.12 in appendix II. 

   Figure 5:  Half of the 100
   Schools With the Largest
   Enrollments Were FDLP Schools,
   as of October 1996

   (See figure in printed
   edition.)


   AGENCY COMMENTS
------------------------------------------------------------ Letter :6

On January 10, 1997, the Department of Education provided us comments
on a draft of this report.  The Department said that it could not
precisely replicate the results of our analysis but, with few
exceptions, their results deviated only slightly from ours.  It also
said that we did not clearly describe our data or offer a sufficient
explanation of the reasons for the results of our analysis. 

We reviewed the specific instances noted by the Department and
revised the report to clarify or correct tables, figures, and
descriptions as appropriate.  During our review, we noted various
inconsistencies among sets of data obtained from Department staff,
and we attempted to resolve them to the extent practicable.  We have
revised the report to provide more precise descriptions of the
information to help explain apparent inconsistencies. 

The Department also suggested that our report discuss the data at
more length and offer explanations for the patterns we observed.  The
scope of our review did not include assessing reasons for the trends
and patterns identified.  Rather, our analysis was focused on
providing information on schools' loan activities in the two loan
programs. 


---------------------------------------------------------- Letter :6.1

We conducted our review from October through December 1996 in
accordance with generally accepted government auditing standards. 

We are sending copies of this report to the Secretary of Education,
appropriate congressional committees, and other interested parties. 
Please call me at (202) 512-7014 if you or your staff have any
questions regarding this report.  Major contributors included Joseph
J.  Eglin, Jr., Assistant Director; Charles M.  Novak; Benjamin P. 
Pfeiffer; and Charles H.  Shervey. 

Sincerely yours,

Carlotta C.  Joyner
Director, Education
 and Employment Issues


SCOPE AND METHODOLOGY
=========================================================== Appendix I

Using data from the Department of Education, our work focused on FDLP
and FFELP loan volume during FDLP's first 2 years.  We used the term
"federal student loans" to refer to both FDLP and FFELP loan
commitments before cancellations.\8

We excluded consolidated loans.  Some schools identified as FFELP
schools as of October 1996 had been FDLP schools earlier and had
students who received FDLP loans in fiscal year 1995. 

For some comparisons, we used schools' loan volume data for fiscal
year 1995 because data were not available by program year.  We
identified FDLP schools using the Department's list of schools
expected to participate in FDLP as of October 1996.  Many of these
schools also made FFELP loans.  Schools identified as FFELP schools
are those that were not in FDLP that were listed as FFELP
participants.  We did not verify the accuracy of data obtained from
the Department. 

To determine the types of schools participating in FDLP and FFELP, we
analyzed Department data concerning schools' characteristics and
placed schools in five groups:  public 4-year, private 4-year, public
less-than-4-year, private less-than-4-year, and proprietary.  We
excluded foreign schools.\9 No foreign schools were FDLP participants
as of October 1996.  We included in the public and private 4-year
groups institutions that offer baccalaureate degrees or more advanced
programs. 

To determine the aggregate cohort FFELP loan default rate for each of
these types of schools, we followed the statutory methodology and
calculated aggregate default rates by dividing the total number of
defaulting FFELP borrowers by the total number of FFELP borrowers
entering repayment.  We calculated separate rates for schools listed
as participants in FDLP and those that were not.  Data needed to
compute default rates for FDLP loans were not available. 

To determine how participation in FDLP varies by state, we calculated
for each state the total fiscal year 1995 dollar amount of FDLP and
FFELP loans provided to students attending postsecondary institutions
in each state that the Department listed as FDLP participants as of
October 1996 and the total amount provided to students at FFELP
schools in the state. 

To determine which of the 100 largest schools participated in FDLP,
we compared the Department's list of schools participating in the
program with a list of the 100 largest institutions that participate
in federal student loan programs developed from the Department's
National Center for Education Statistics' preliminary fall 1995
enrollment survey data. 

In some cases branches of schools use separate Department
identification numbers for administering federal loan programs.  For
the purposes of this analysis, we counted each entity using a
separate identification number as a separate school. 


--------------------
\8 Loan commitments are the amounts of loans that lenders or schools
commit to make (and guaranty agencies commit to guarantee) to
students or their parents.  These amounts can be higher than the net
principal amounts of loans made because of cancellations.  A loan may
be cancelled if loan proceeds are never disbursed to the borrower,
the loan check remains uncashed 120 days after disbursement, loan
proceeds in an escrow account are undisbursed for more than 120 days
after being transferred to the account, or the loan is repaid in full
within 120 days of disbursement. 

\9 During fiscal year 1995, students at about 500 foreign schools
received approximately $140 million in FFELP loans. 


SELECTED INFORMATION ON FDLP AND
FFELP SCHOOLS
========================================================== Appendix II



                               Table II.1
                
                 Types of Schools in FDLP and FFELP, as
                            of October 1996

                                        FDLP schools\a  FFELP schools
                                        --------------  --------------
                                                Percen          Percen
                                                  tage            tage
                                                    of              of
                                                  FDLP           FFELP
                                                school          school
Type of school                          Number       s  Number       s
--------------------------------------  ------  ------  ------  ------
Public 4-year                              245     15%     335      7%
Private 4-year                             241      15   1,192      25
Public less-than-4-year                    170      10   1,345      29
Private less-than-4-year                    52       3     477      10
Proprietary                                914      56   1,341      29
======================================================================
Total                                    1,622  100%\b   4,690    100%
----------------------------------------------------------------------
\a Includes schools that also make FFELP loans. 

\b The sum of the numbers shown is not equal to the total because of
rounding. 



                         Table II.2
          
            Fiscal Year 1995 Loan Volume at FDLP
                Schools, as of October 1996

                   (Dollars in millions)

Type of school      FDLP loans   FFELP loans         Total
----------------  ------------  ------------  ------------
Public 4-year           $2,064        $3,685        $5,749
Private 4-year           1,261         1,179         2,440
Public less-               217           118           335
 than-4-year
Private less-               71             3            74
 than-4-year
Proprietary              1,070           148         1,218
==========================================================
Total\a                 $4,683        $5,132        $9,815
----------------------------------------------------------
\a The sum of figures may not equal the total shown because of
rounding. 



                               Table II.3
                
                  Comparison of Schools the Department
                Listed as FDLP Candidates for Year 2 (in
                March 1995) and FDLP Candidates for Year
                  3 (in March 1996) With Schools That
                         Participated Each Year

                                                         Fiscal year
                                                          1995 loan
                                          Number of         volume
                                          schools\a       (millions)
                                        --------------  --------------
Schools                                 Year 2  Year 3  Year 2  Year 3
--------------------------------------  ------  ------  ------  ------
Listed as new FDLP candidates as of      1,309     539  $7,146  $2,611
 March
Remained on the list of expected         1,191     297   6,723     851
 participants
Deleted from the list of expected          118     242     423   1,760
 participants
Not listed as candidates in March but       42      57     208      34
 later added to the list of expected
 participants
======================================================================
Total new FDLP schools                   1,233     354  $6,931    $885
----------------------------------------------------------------------
Note:  As of October 1996, 354 schools had agreed to join FDLP in its
third year.  An additional 242 schools that were listed as new
participants for year 3 as of March 1996, however, subsequently
declined to participate or otherwise were deleted from the list of
expected participants.  By comparison, of the 1,309 schools that had
agreed to join FDLP in its second year, as of March 1995, 118 had
declined to participate (or for some other reason were deleted from
the list of expected participants).  The other 1,191 schools were
still listed as year 2 participants as of March 1996.  The 242
schools listed as year 3 candidates as of March 1996 that were
deleted from the list had a significantly larger loan volume ($1.76
billion) than the schools dropping out of the program's second year
($423 million).  They also had a much larger loan volume than the
schools that agreed to join FDLP in its third year ($885 million). 

\a These included schools that withdrew, deferred participation,
closed, or were terminated from the program by the Department. 



                               Table II.4
                
                 Number of Schools Selected as New FDLP
                   Participants for Year 3, and Those
                     Withdrawn, as of October 1996

                                                       Schools
                                                       deleted
                                                      from the     Net
                                             School    list of  school
                                                  s   expected       s
                                             select  participa  select
Kind of school                                   ed      nts\a      ed
-------------------------------------------  ------  ---------  ------
Public 4-year                                    65         48      17
Private 4-year                                   95         74      21
Public less-than-4-year                          78         49      29
Private less-than-4-year                         26         11      15
Proprietary                                     385        113     272
======================================================================
All schools                                     649        295     354
----------------------------------------------------------------------
\a These included schools that withdrew, deferred participation,
closed, or were terminated from the program by the Department. 



                               Table II.5
                
                Fiscal Year 1995 FFELP Loan Volumes for
                      Schools Selected as New FDLP
                   Participants for Year 3, and Those
                     Withdrawn, as of October 1996

                         (Dollars in millions)

                                                       Schools
                                                       deleted
                                                      from the     Net
                                             School    list of  school
                                                  s   expected       s
                                             select  participa  select
Kind of school                                   ed      nts\a    ed\b
-------------------------------------------  ------  ---------  ------
Public 4-year                                $1,349     $1,037    $311
Private 4-year                                1,094        814     279
Public less-than-4-year                         126         74      51
Private less-than-4-year                         36         23      14
Proprietary                                     285         82     203
======================================================================
All schools\c                                $2,889     $2,031    $859
----------------------------------------------------------------------
\a These included schools that withdrew, deferred participation,
closed, or were terminated from the program by the Department. 

\b The difference between the amounts of loans for schools selected
and schools withdrawn may not equal the net shown because of
rounding. 

\c The sum of the numbers shown may not equal the total because of
rounding. 



                               Table II.6
                
                 Volume of FDLP and FFELP Loans During
                                 Year 1

                         (Dollars in millions)

                                                                  FDLP
                                                                 loans
                                                                  as a
                                                                percen
                                                 FFELP            tage
                                          FDLP  loans\              of
Type of school                           loans       a   Total   total
--------------------------------------  ------  ------  ------  ------
Public 4-year                           $1,311  $9,469  $10,78     12%
                                                             0
Private 4-year                             361   9,210   9,571       4
Public less-than-4-year                     21   1,338   1,359       2
Private less-than-4-year                   0\b     374     374     0\c
Proprietary                                 66   2,444   2,510       3
======================================================================
Total\d                                 $1,760  $22,83  $24,59      7%
                                                     4       4
----------------------------------------------------------------------
Note:  Table excludes about $100 million in FFELP loans to students
attending schools whose type was not indicated. 

\a Includes FFELP loans to students at schools participating in FDLP. 

\b Less than $500,000. 

\c Less than 0.5 percent. 

\d The sum of the figures shown may not equal the total because of
rounding. 



                               Table II.7
                
                 Volume of FDLP and FFELP Loans During
                                 Year 2

                         (Dollars in millions)

                                                                  FDLP
                                                                 loans
                                                                  as a
                                                                percen
                                                 FFELP            tage
                                          FDLP  loans\  Total\      of
Type of school                           loans       a       b   total
--------------------------------------  ------  ------  ------  ------
Public 4-year                           $5,484  $6,862  $12,34     44%
                                                             6
Private 4-year                           1,986   8,528  10,514      19
Public less-than-4-year                    293   1,213   1,506      19
Private less-than-4-year                    18     362     380       5
Proprietary                                503   2,147   2,649      19
======================================================================
Total\b                                 $8,284  $19,11  $27,39     30%
                                                   1\c       5
----------------------------------------------------------------------
Note:  Table excludes about $200 million in loans to students
attending schools whose type was not indicated. 

\a Includes FFELP loans to students at FDLP schools. 

\b The sum of the figures shown may not equal the total because of
rounding. 

\c According to Department Budget Service staff, the total, as of
January 1997, for FFELP loans during year 2, was $18.8 billion. 



                         Table II.8
          
           Loans in Year 2 to Students Attending
                        FDLP Schools

                   (Dollars in millions)

                                             FDLP loans as
                          FDLP       FFELP    a percentage
Type of school           loans     loans\a        of total
------------------  ----------  ----------  --------------
Public 4-year           $5,484        $496             92%
Private 4-year           1,986         421              83
Public less-than-          293          23              93
 4-year
Private less-               18          24              43
 than-4-year
Proprietary                503         415              55
==========================================================
Total                   $8,284      $1,379             86%
----------------------------------------------------------
\a Table includes about $639 million of FFELP loans to students at
441 schools listed as of March 1996 as FDLP participants whose
students did not receive FDLP loans during year 2. 

\b Percentages shown may not equal the percentages of dollar amounts
because of rounding. 



                                    Table II.9
                     
                      FFELP Default Rates for FDLP and FFELP
                          Schools by Cohort Fiscal Year

                     (Percentage of borrowers that defaulted)

                                       1991            1992            1993
                                  --------------  --------------  --------------
Type of school                      FDLP   FFELP    FDLP   FFELP    FDLP   FFELP
--------------------------------  ------  ------  ------  ------  ------  ------
Public 4-year                       6.6%    6.6%    7.2%    6.9%    6.7%    6.7%
Private 4-year                       7.1     5.2     7.7     5.8     7.6     5.6
Public less-than-4-year             14.4    14.5    15.1    14.3    14.8    14.5
Private less-than-4-year            19.9    16.2    18.8    15.4    19.4    13.2
Proprietary                         19.5    30.2    18.9    25.5    19.4    23.2
================================================================================
All schools                        10.5%   11.8%   10.9%   10.9%   10.2%    9.9%
--------------------------------------------------------------------------------
Notes:  Default rates for FDLP schools are the percentage of FFELP
borrowers who (1) attended schools participating in FDLP as of
October 1996, (2) entered repayment in the cohort fiscal year, and
(3) defaulted by the end of the following fiscal year.  The rates for
FFELP schools are for students attending schools that were not FDLP
participants as of October 1996, but were in FFELP or FDLP as of the
Department's calculation of cohort default rates published in
February 1996.  The cohort rates reflect the Department's addenda to
its published rates, but not its subsequent revisions to schools'
default rates.

Default rate data were not available for some schools either because
they had no former students with loans entering repayment in the
cohort years or because the schools were participants in neither
FFELP nor FDLP as of the publication of the default rate data. 



                        Table II.10
          
             FDLP Participation by State, as of
                        October 1996

                                              FDLP schools
                                                      as a
                                                percentage
                          FDLP         Total      of total
State/territory      schools\a     schools\b       schools
----------------  ------------  ------------  ------------
Alabama                     21            84           25%
Alaska                       2             9            22
Arizona                     41            85            48
Arkansas                     7            84             8
California                 218           586            37
Colorado                    30            90            33
Connecticut                 25            98            26
Delaware                     5            12            42
District of                  6            23            26
 Columbia
Florida                     53           227            23
Georgia                     46           147            31
Hawaii                       1            20             5
Idaho                       10            25            40
Illinois                    80           265            30
Indiana                     28           121            23
Iowa                        41            92            45
Kansas                      20            84            24
Kentucky                    41           178            23
Louisiana                   25           132            19
Maine                       10            43            23
Maryland                    36            90            40
Massachusetts               58           193            30
Michigan                    49           182            27
Minnesota                   25           117            21
Mississippi                  8            60            13
Missouri                    31           192            16
Montana                      3            34             9
Nebraska                    10            55            18
Nevada                       6            20            30
New Hampshire                4            37            11
New Jersey                  54           140            39
New Mexico                   9            39            23
New York                   113           467            24
North Carolina              32           147            22
North Dakota                 5            31            16
Ohio                        69           284            24
Oklahoma                    11           115            10
Oregon                      24            77            31
Pacific                      1             6            17
 territories
Pennsylvania                75           416            18
Puerto Rico                 35           110            32
Rhode Island                10            28            36
South Carolina              17            79            22
South Dakota                 2            30             7
Tennessee                   24           148            16
Texas                       72           317            23
Utah                         5            44            11
Vermont                      6            28            21
Virgin Islands               1             1           100
Virginia                    48           145            33
Washington                  21            93            23
West Virginia               24            74            32
Wisconsin                   22            93            24
Wyoming                      2            15            13
==========================================================
Total                    1,622         6,312           26%
----------------------------------------------------------
\a Schools eligible to participate in FDLP; 90 of these were schools
that Department records show had no fiscal year 1995 FFELP or FDLP
loans. 

\b Schools eligible to participate in FFELP or FDLP; 1,152 of these
were FFELP schools that Department records show had no fiscal year
1995 loans. 



                        Table II.11
          
            Fiscal Year 1995 FDLP and FFELP Loan
            Volume at FDLP and FFELP Schools, by
                 State, as of October 1996

                   (Dollars in millions)

                  Amount    Amount     Total     Amount at
                of loans  of loans    fiscal  FDLP schools
                 at FDLP  at FFELP      year          as a
State/          schools\  schools\      1995    percentage
territory\a            b         b   loans\c    of total\d
--------------  --------  --------  --------  ------------
Alabama             $220      $110      $330           67%
Alaska                 2        14        16            10
Arizona              269       326       596            45
Arkansas              17       139       157            11
California           964     1,542     2,506            39
Colorado             256       224       480            53
Connecticut           62       227       289            22
Delaware              23        10        33            71
District of          212       135       347            61
 Columbia
Florida              247       825     1,072            23
Georgia              344       294       638            54
Hawaii               0\e        36        37             1
Idaho                108        25       134            81
Illinois             421       572       993            42
Indiana              199       434       633            32
Iowa                 276       176       453            61
Kansas               127       178       305            42
Kentucky             137       172       309            44
Louisiana            104       416       520            20
Maine                 34        85       118            28
Maryland             225       121       346            65
Massachusetts        494       463       958            52
Michigan             570       275       845            67
Minnesota            158       356       513            31
Mississippi           14       203       216             6
Missouri             260       379       639            41
Montana               32        80       112            29
Nebraska              59       165       224            26
Nevada                25        26        51            49
New Hampshire          8       153       161             5
New Jersey           293       139       432            68
New Mexico            53        73       127            42
New York             921     1,380     2,301            40
North Carolina       111       370       481            23
North Dakota           4        96       100             4
Ohio                 524       623     1,147            46
Oklahoma              71       282       353            20
Oregon               178       130       308            58
Pacific              0\e         0       0\e             0
 territories
Pennsylvania         174     1,452     1,626            11
Puerto Rico          106        25       131            81
Rhode Island          93       105       198            47
South Carolina        69       249       318            22
South Dakota           8       111       119             7
Tennessee            137       325       462            30
Texas                230     1,158     1,388            17
Utah                  16       166       181             9
Vermont               40        67       106            37
Virgin Islands         1         0         1           100
Virginia             428       211       638            67
Washington           220       357       577            38
West Virginia        122        43       166            74
Wisconsin            148       332       480            31
Wyoming              0\e        45        45             1
==========================================================
Total\c           $9,815   $15,900   $25,715           38%
----------------------------------------------------------
\a State or territory in which the main campus of each school is
located. 

\b Total of FDLP and FFELP loans. 

\c The sum of figures shown may not equal the total because of
rounding. 

\d The numbers may not equal the percentage shown because of
rounding. 

\e Less than $500,000. 



                        Table II.12
          
          Loan Program Participation as of October
           1996 for the 100 Schools With Largest
                  Enrollments in Fall 1995

                                Preliminar
                                         y
                                 fall 1995    FDLP   FFELP
                                enrollment  school  school
Rank    School                          \a      \b      \c
------  ----------------------  ----------  ------  ------
1       University of               51,445       X
         Minnesota-Twin Cities
2       Ohio State University-      48,676       X
         Main Campus
3       The University of           47,905               X
         Texas at Austin
4       Miami-Dade Community        47,060               X
         College
5       Arizona State               42,040       X
         University-Main
         Campus
6       Texas A & M University      41,790               X
7       Michigan State              40,647       X
         University
8       Pennsylvania State          39,646               X
         University-Main
         Campus
9       Houston Community           39,541               X
         College System
10      University of Florida       39,412       X
11      University of               39,005               X
         Wisconsin-Madison
12      University of Illinois      38,420       X
         at Urbana
13      Northern Virginia           37,144       X
         Community College
14      University of               36,687       X
         Michigan-Ann Arbor
15      Purdue University-          36,427               X
         Main Campus
16      University of South         36,142               X
         Florida
17      New York University         35,835       X
18      Indiana University-         35,063       X
         Bloomington
19      University of Arizona       34,777               X
20      University of               34,713               X
         California-
         Los Angeles
21      University of               33,996       X
         Washington
22      Rutgers University-         33,773       X
         New Brunswick
23      University of Maryland      32,908       X
         College Park Campus
24      Wayne State University      32,149       X
25      Brigham Young               31,300               X
         University
26      University of Houston-      30,766               X
         University Park
27      Florida State               30,155               X
         University
28      University of Georgia       30,149       X
29      College of Du Page          29,888               X
30      University of               29,630       X
         California-Berkeley
31      San Diego State             29,350       X
         University
32      Boston University           29,132       X
33      Temple University           29,028               X
34      University of               28,373               X
         Cincinnati-Main
         Campus
35      North Carolina State        28,250               X
         University at Raleigh
36      Florida International       28,171               X
         University
37      University of Iowa          28,052       X
38      University of Southern      27,971               X
         California
39      Pima Community College      27,866       X
40      University of Colorado      27,624       X
         at Boulder
41      University of Utah          27,137               X
42      Indiana University-         26,939               X
         Purdue University-
         Indianapolis
43      San Francisco State         26,791       X
         University
44      Louisiana State             26,573               X
         University and
         A & M College and
         Hebert Law Center
45      University of Central       26,556               X
         Florida
46      Portland Community          26,540               X
         College
47      Western Michigan            26,537       X
         University
48      California State            26,403               X
         University-Long Beach
49      University of South         26,346               X
         Carolina at Columbia
50      Colorado State              26,340       X
         University
51      University of               26,083               X
         Pittsburgh-Main
         Campus
52      City College of San         26,019               X
         Francisco
53      San Jose State              25,997               X
         University
54      Tarrant County Junior       25,953       X
         College
55      Oakland Community           25,913               X
         College
56      Broward Community           25,738               X
         College
57      University of               25,723               X
         Tennessee-Knoxville
58      Austin Community            25,620               X
         College
59      Virginia Polytechnic        25,492       X
         Institute and State
         University
60      University of               25,267       X
         Massachusetts-
         Amherst
61      Macomb Community            25,176       X
         College
62      University of North         25,114               X
         Texas
63      University of Kansas-       25,036       X
         Main Campus
64      California State            25,015               X
         University-
         Northridge
65      University of Illinois      24,870       X
         at Chicago
66      Harvard University          24,677       X
67      Iowa State University       24,673       X
68      Northeastern                24,605               X
         University
69      University of New           24,605       X
         Mexico-Main Campus
70      State University of         24,493       X
         New York at Buffalo
71      University of North         24,439               X
         Carolina at Chapel
         Hill
72      University of Nebraska      24,320       X
         at Lincoln
73      Georgia State               24,274       X
         University
74      Texas Tech University       24,185               X
75      George Mason                24,172       X
         University
76      University of Kentucky      23,794       X
77      University of Akron         23,640               X
         Main Campus
78      Central Michigan            23,575       X
         University
79      Valencia Community          23,569               X
         College
80      Eastern Michigan            23,142               X
         University
81      University of               23,091       X
         California-Davis
82      California State            22,796               X
         University-
         Sacramento
83      Cuyahoga Community          22,785       X
         College District
84      California State            22,604       X
         University-Fullerton
85      De Anza College             22,545               X
86      University of               22,471               X
         Connecticut
87      Southern Illinois           22,418       X
         University-
         Carbondale
88      University of               22,356       X
         Missouri-Columbia
89      University of               22,299               X
         Oklahoma-Norman
         Campus
90      Northern Illinois           22,218               X
         University
91      Mt. San Antonio             22,202       X
         College
92      University of               22,148               X
         Pennsylvania
93      Auburn University-          22,122       X
         Main Campus
94      The University of           22,121               X
         Texas at Arlington
95      University of Toledo        21,991       X
96      Milwaukee Area              21,903               X
         Technical College
97      University of               21,891       X
         Wisconsin-Milwaukee
98      El Paso Community           21,856               X
         College
99      Nassau Community            21,737       X
         College
100     University of               21,728       X
         Virginia-Main Campus
----------------------------------------------------------
Note:  Not all enrolled students receive student loans.  In aggregate
during fiscal year 1995, students at the FDLP schools listed above
received about $3.1 billion in loans, including $2.07 billion in FDLP
loans and $1.06 billion in FFELP loans.  The students at FFELP
schools listed received about $2.63 billion in FFELP loans. 

\a Excludes students not enrolled for credit. 

\b Schools that the Department determined to be eligible to
participate in FDLP. 

\c Schools that Department records show to be eligible to participate
in FFELP, but not in FDLP. 


*** End of document. ***