[Weekly Compilation of Presidential Documents Volume 34, Number 44 (Monday, November 2, 1998)]
[Pages 2139-2140]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement on the Student Loan Default Rate

October 26, 1998

    When I came into office, there was a student loan default crisis in 
this Nation. Nearly one out of every four students was failing to pay 
back his loan.
    Today I am proud to announce that we have brought the default rate 
down below 10 percent, the lowest rate since these data have been 
collected. The student loan program is now a shining example of 
Government providing opportunity with accountability.
    Some of those failing to pay back their loans were victims of fly-
by-night schools that never followed through on their promises. I am 
proud that over the past 6 years, we have eliminated 1,065 schools from 
the student loan program, protecting students and taxpayers from fraud 
and abuse.
    Other students had difficulty affording their loan payments, because 
they were just getting on their feet, or they had decided to take low-
paying jobs serving their communities. I am pleased that the reforms for 
which I fought have given those borrowers a wide variety of options, 
including paying off their loans as a percentage of their income over 
time. And because of our economic strategy of reducing the deficit while 
investing in people's skills, there are jobs for those who finish 
college, so they can pay off their loans.
    Unfortunately, there will always be some who just do not take their 
responsibilities seriously and then expect taxpayers to cover for them. 
Fortunately for the taxpayers, this government has expanded the tools 
that it has to find these defaulters and arrange for payment. That has 
taught others that a student loan is not a free ride.
    This success comes from the hard work of Government. It is a 
testament to the commitment of our Secretary of Education, to the 
policies that we have implemented, and to the people who have put them 
into practice.

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