United States General Accounting Office

GAO 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

GAO United States

General Accounting Office

Washington, D.C. 20548

Health, Education, and

Human Services Division

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.

Results in Brief 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

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.

Page 1 GAO/HEHS-97-45 FDLP and FFELP Schools
B-275721 

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 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.

Page 2 GAO/HEHS-97-45 FDLP and FFELP Schools
B-275721 

Number of FDLP and

FFELP Schools and

Their Loan Volumes

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 proprietary3

 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 participants5

 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

Type of school

FDLP

schoolsa

FFELP

schools

FDLP schools as a

percentage of all

schools

Public 4-year 245 335 42%

Private 4-year 241 1,192 17

Public less-than-4-year 170 1,345 11

Private less-than-4-year 52 477 10

Proprietary 914 1,341 41

Total 1,622 4,690 26%

Note: For further details, see table II.1 in appendix II.

aSchools 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.

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.

Page 3 GAO/HEHS-97-45 FDLP and FFELP Schools
B-275721 

Figure 1: Fiscal Year 1995 Loan

Volume for Schools in FDLP and

FFELP, as of October 1996

FDLP FFELP

0

5

10

15

$20

Public 4-Year

Private 4-Year

Public Less-Than-4-Year

Private Less-Than-4-Year

Proprietary

Dollars in Billions

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.

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.)

Page 4 GAO/HEHS-97-45 FDLP and FFELP Schools
B-275721 

Table 2: Fiscal Year 1995 Loan Volume

for Schools in FDLP and FFELP, as of

October 1996

Dollars in millions

Type of school

Loans to

students

at FDLP

schoolsa

Loans to

students

at FFELP

schools

Total loan

volumeb

FDLP school

volume as a

percentage of

totalc

Public 4-year $5,749 $5,904 $11,652 49%

Private 4-year 2,440 7,614 10,054 24

Public

less-than-4-year 335 1,039 1,373 24

Private

less-than-4-year 74 204 278 26

Proprietary 1,218 1,139 2,357 52

Totalb $9,815 $15,900 $25,715 38%

aIncludes 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.

bThe sum of figures may not equal the total shown because of rounding.

cNumbers 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.

Page 5 GAO/HEHS-97-45 FDLP and FFELP Schools
B-275721 

Figure 2: Comparison of FDLP and

FFELP Loan Volume During FDLP’s

First 2 Years

FDLP FFELP FDLP FFELP

0

5

10

15

20

$25

Year 1 

Public 4-Year

Private 4-Year

Public Less-Than-4-Year

Private Less-Than-4-Year

Proprietary

Year 2

Dollars in Billions

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).

Page 6 GAO/HEHS-97-45 FDLP and FFELP Schools
B-275721 

Default Rates of FDLP

and FFELP Schools

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 rate7

). 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.

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.

Page 7 GAO/HEHS-97-45 FDLP and FFELP Schools
B-275721 

Figure 3: FFELP Default Rates for

FDLP and FFELP Schools, 1993 Cohort

Year

0

5

10

15

20

25

Public 4-Year

Private 4-Year

Public Less-Than-4-Year

Private Less-Than-4-Year

Proprietary

All Schools

FDLP

FFELP

Note: Data supporting this figure, and similar data for cohort fiscal years 1991 and 1992, are

found in table II.9 in appendix II.

FDLP Participation by

State and Among the

100 Largest Schools

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.

Page 8 GAO/HEHS-97-45 FDLP and FFELP Schools
B-275721 

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

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.

Page 9 GAO/HEHS-97-45 FDLP and FFELP Schools
B-275721 

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

FDLP FFELP

0

10

20

30

40

50

60

Public 4-Year

Private 4-Year

Public Less-Than-4-Year

Number of Schools

Agency Comments 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

Page 10 GAO/HEHS-97-45 FDLP and FFELP Schools
B-275721 

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.

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

Page 11 GAO/HEHS-97-45 FDLP and FFELP Schools
Contents

Letter 1

Appendix I 

Scope and

Methodology

14

Appendix II 

Selected Information

on FDLP and FFELP

Schools

16

Tables Table 1: Types of Schools in FDLP and FFELP, as of

October 1996

3

Table 2: Fiscal Year 1995 Loan Volume for Schools in FDLP and

FFELP, as of October 1996

5

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

October 1996

16

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

October 1996

16

Table II.3: Comparison of Schools the Department Listed as

FDLP Candidates for Year 2 and FDLP Candidates for Year 3

 With Schools That Participated Each Year

17

Table II.4: Number of Schools Selected as New FDLP Participants

for Year 3, and Those Withdrawn, as of October 1996

17

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

18

Table II.6: Volume of FDLP and FFELP Loans During Year 1 18

Table II.7: Volume of FDLP and FFELP Loans During Year 2 19

Table II.8: Loans in Year 2 to Students Attending FDLP Schools 19

Table II.9: FFELP Default Rates for FDLP and FFELP Schools by

Cohort Fiscal Year

20

Table II.10: FDLP Participation by State, as of October 1996 21

Table II.11: Fiscal Year 1995 FDLP and FFELP Loan Volume at

FDLP and FFELP Schools, by State, as of October 1996

23

Table II.12: Loan Program Participation as of October 1996 for

the 100 Schools With Largest Enrollments in Fall 1995

25

Page 12 GAO/HEHS-97-45 FDLP and FFELP Schools
Contents

Figures Figure 1: Fiscal Year 1995 Loan Volume for Schools in FDLP and

FFELP, as of October 1996

4

Figure 2: Comparison of FDLP and FFELP Loan Volume During

FDLP’s First 2 Years

6

Figure 3: FFELP Default Rates for FDLP and FFELP Schools,

1993 Cohort Year

8

Figure 4: FDLP Schools’ Share of Fiscal Year 1995 Loan Volume 9

Figure 5: Half of the 100 Schools With the Largest Enrollments

Were FDLP Schools, as of October 1996

10

Abbreviations

FDLP Federal Direct Loan Program

FFELP Federal Family Education Loan Program

Page 13 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix I 

Scope and Methodology

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

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.

Page 14 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix I 

Scope and Methodology

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.

Page 15 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix II 

Selected Information on FDLP and FFELP

Schools

Table II.1: Types of Schools in FDLP

and FFELP, as of October 1996 FDLP schoolsa FFELP schools

Type of school Number

Percentage

of FDLP

schools Number

Percentage

of FFELP

schools

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%

aIncludes schools that also make FFELP loans.

bThe 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-than-4-year 217 118 335

Private less-than-4-year 71 3 74

Proprietary 1,070 148 1,218

Totala $4,683 $5,132 $9,815

aThe sum of figures may not equal the total shown because of rounding.

Page 16 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix II 

Selected Information on FDLP and FFELP

Schools

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

Number of schoolsa

Fiscal year 1995 loan

volume (millions)

Schools Year 2 Year 3 Year 2 Year 3

Listed as new FDLP candidates as

of March 1,309 539 $7,146 $2,611

Remained on the list of expected

participants 1,191 297 6,723 851

Deleted from the list of expected

participants 118 242 423 1,760

Not listed as candidates in March

but later added to the list of

expected participants 42 57 208 34

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).

aThese 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

Kind of school

Schools

selected

Schools

deleted from

the list of

expected

participantsa

Net

schools

selected

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

aThese included schools that withdrew, deferred participation, closed, or were terminated from

the program by the Department.

Page 17 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix II 

Selected Information on FDLP and FFELP

Schools

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

Kind of school

Schools

selected

Schools

deleted from

the list of

expected

participantsa

Net

schools

selectedb

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 schoolsc $2,889 $2,031 $859

aThese included schools that withdrew, deferred participation, closed, or were terminated from

the program by the Department.

bThe difference between the amounts of loans for schools selected and schools withdrawn may

not equal the net shown because of rounding.

cThe 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

Type of school FDLP loans

FFELP

loansa Total

FDLP

loans as a

percentage

of total

Public 4-year $1,311 $9,469 $10,780 12%

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 0b 374 374 0c

Proprietary 66 2,444 2,510 3

Totald $1,760 $22,834 $24,594 7%

Note: Table excludes about $100 million in FFELP loans to students attending schools whose type

was not indicated.

aIncludes FFELP loans to students at schools participating in FDLP.

bLess than $500,000.

cLess than 0.5 percent.

dThe sum of the figures shown may not equal the total because of rounding.

Page 18 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix II 

Selected Information on FDLP and FFELP

Schools

Table II.7: Volume of FDLP and FFELP

Loans During Year 2 Dollars in millions

Type of school

FDLP

loans

FFELP

loansa Totalb

FDLP

loans as a

percentage

of total

Public 4-year $5,484 $6,862 $12,346 44%

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

Totalb $8,284 $19,111c $27,395 30%

Note: Table excludes about $200 million in loans to students attending schools whose type was

not indicated.

aIncludes FFELP loans to students at FDLP schools.

bThe sum of the figures shown may not equal the total because of rounding.

cAccording 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

Type of school

FDLP

loans

FFELP

loansa

FDLP loans as a

percentage of total

Public 4-year $5,484 $496 92%

Private 4-year 1,986 421 83

Public less-than-4-year 293 23 93

Private less-than-4-year 18 24 43

Proprietary 503 415 55

Total $8,284 $1,379 86%

aTable 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.

bPercentages shown may not equal the percentages of dollar amounts because of rounding.

Page 19 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix II 

Selected Information on FDLP and FFELP

Schools

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

1991 1992 1993

Percentage of borrowers that defaulted

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.

Page 20 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix II 

Selected Information on FDLP and FFELP

Schools

Table II.10: FDLP Participation by

State, as of October 1996

State/territory FDLP schoolsa Total schoolsb

FDLP schools as

a percentage of

total 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 Columbia 6 23 26

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

(continued)

Page 21 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix II 

Selected Information on FDLP and FFELP

Schools

State/territory FDLP schoolsa Total schoolsb

FDLP schools as

a percentage of

total schools

Oklahoma 11 115 10

Oregon 24 77 31

Pacific territories 1 6 17

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%

aSchools eligible to participate in FDLP; 90 of these were schools that Department records show

had no fiscal year 1995 FFELP or FDLP loans.

bSchools eligible to participate in FFELP or FDLP; 1,152 of these were FFELP schools that

Department records show had no fiscal year 1995 loans.

Page 22 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix II 

Selected Information on FDLP and FFELP

Schools

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

State/territorya

Amount of

loans at

FDLP

schoolsb

Amount of

loans at

FFELP

schoolsb

Total fiscal

year 1995

loansc

Amount at FDLP

schools as a

percentage of

totald

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 Columbia 212 135 347 61

Florida 247 825 1,072 23

Georgia 344 294 638 54

Hawaii 0e 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

(continued)

Page 23 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix II 

Selected Information on FDLP and FFELP

Schools

Dollars in millions

State/territorya

Amount of

loans at

FDLP

schoolsb

Amount of

loans at

FFELP

schoolsb

Total fiscal

year 1995

loansc

Amount at FDLP

schools as a

percentage of

totald

Ohio 524 623 1,147 46

Oklahoma 71 282 353 20

Oregon 178 130 308 58

Pacific territories 0e 0 0e 0

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 0e 45 45 1

Totalc $9,815 $15,900 $25,715 38%

aState or territory in which the main campus of each school is located.

bTotal of FDLP and FFELP loans.

cThe sum of figures shown may not equal the total because of rounding.

dThe numbers may not equal the percentage shown because of rounding.

eLess than $500,000.

Page 24 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix II 

Selected Information on FDLP and FFELP

Schools

Table II.12: Loan Program Participation

as of October 1996 for the 100 Schools

With Largest Enrollments in Fall 1995

Rank School

Preliminary

fall 1995

enrollmenta

FDLP

schoolb

FFELP

schoolc

1 University of Minnesota-Twin Cities 51,445 X

2 Ohio State University-Main

Campus 48,676 X

3 The University of Texas at Austin 47,905 X

4 Miami-Dade Community College 47,060 X

5 Arizona State University-Main

Campus 42,040 X

6 Texas A & M University 41,790 X

7 Michigan State University 40,647 X

8 Pennsylvania State

University-Main Campus 39,646 X

9 Houston Community College

System 39,541 X

10 University of Florida 39,412 X

11 University of Wisconsin-Madison 39,005 X

12 University of Illinois at Urbana 38,420 X

13 Northern Virginia Community

College 37,144 X

14 University of Michigan-Ann Arbor 36,687 X

15 Purdue University-Main Campus 36,427 X

16 University of South Florida 36,142 X

17 New York University 35,835 X

18 Indiana University-Bloomington 35,063 X

19 University of Arizona 34,777 X

20 University of CaliforniaLos Angeles 34,713 X

21 University of Washington 33,996 X

22 Rutgers University-New Brunswick 33,773 X

23 University of Maryland College

Park Campus 32,908 X

24 Wayne State University 32,149 X

25 Brigham Young University 31,300 X

26 University of Houston-University

Park 30,766 X

27 Florida State University 30,155 X

28 University of Georgia 30,149 X

29 College of Du Page 29,888 X

30 University of California-Berkeley 29,630 X

31 San Diego State University 29,350 X

(continued)

Page 25 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix II 

Selected Information on FDLP and FFELP

Schools

Rank School

Preliminary

fall 1995

enrollmenta

FDLP

schoolb

FFELP

schoolc

32 Boston University 29,132 X

33 Temple University 29,028 X

34 University of Cincinnati-Main

Campus 28,373 X

35 North Carolina State University at

Raleigh 28,250 X

36 Florida International University 28,171 X

37 University of Iowa 28,052 X

38 University of Southern California 27,971 X

39 Pima Community College 27,866 X

40 University of Colorado at Boulder 27,624 X

41 University of Utah 27,137 X

42 Indiana University-Purdue

University-Indianapolis 26,939 X

43 San Francisco State University 26,791 X

44 Louisiana State University and 

A & M College and Hebert Law

Center 26,573 X

45 University of Central Florida 26,556 X

46 Portland Community College 26,540 X

47 Western Michigan University 26,537 X

48 California State University-Long

Beach 26,403 X

49 University of South Carolina at

Columbia 26,346 X

50 Colorado State University 26,340 X

51 University of Pittsburgh-Main

Campus 26,083 X

52 City College of San Francisco 26,019 X

53 San Jose State University 25,997 X

54 Tarrant County Junior College 25,953 X

55 Oakland Community College 25,913 X

56 Broward Community College 25,738 X

57 University of Tennessee-Knoxville 25,723 X

58 Austin Community College 25,620 X

59 Virginia Polytechnic Institute and

State University 25,492 X

60 University of

Massachusetts-Amherst 25,267 X

61 Macomb Community College 25,176 X

(continued)

Page 26 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix II 

Selected Information on FDLP and FFELP

Schools

Rank School

Preliminary

fall 1995

enrollmenta

FDLP

schoolb

FFELP

schoolc

62 University of North Texas 25,114 X

63 University of Kansas-Main

Campus 25,036 X

64 California State

University-Northridge 25,015 X

65 University of Illinois at Chicago 24,870 X

66 Harvard University 24,677 X

67 Iowa State University 24,673 X

68 Northeastern University 24,605 X

69 University of New Mexico-Main

Campus 24,605 X

70 State University of New York at

Buffalo 24,493 X

71 University of North Carolina at

Chapel Hill 24,439 X

72 University of Nebraska at Lincoln 24,320 X

73 Georgia State University 24,274 X

74 Texas Tech University 24,185 X

75 George Mason University 24,172 X

76 University of Kentucky 23,794 X

77 University of Akron Main Campus 23,640 X

78 Central Michigan University 23,575 X

79 Valencia Community College 23,569 X

80 Eastern Michigan University 23,142 X

81 University of California-Davis 23,091 X

82 California State

University-Sacramento 22,796 X

83 Cuyahoga Community College

District 22,785 X

84 California State

University-Fullerton 22,604 X

85 De Anza College 22,545 X

86 University of Connecticut 22,471 X

87 Southern Illinois

University-Carbondale 22,418 X

88 University of Missouri-Columbia 22,356 X

89 University of Oklahoma-Norman

Campus 22,299 X

90 Northern Illinois University 22,218 X

91 Mt. San Antonio College 22,202 X

(continued)

Page 27 GAO/HEHS-97-45 FDLP and FFELP Schools
Appendix II 

Selected Information on FDLP and FFELP

Schools

Rank School

Preliminary

fall 1995

enrollmenta

FDLP

schoolb

FFELP

schoolc

92 University of Pennsylvania 22,148 X

93 Auburn University-Main Campus 22,122 X

94 The University of Texas at

Arlington 22,121 X

95 University of Toledo 21,991 X

96 Milwaukee Area Technical College 21,903 X

97 University of Wisconsin-Milwaukee 21,891 X

98 El Paso Community College 21,856 X

99 Nassau Community College 21,737 X

100 University of Virginia-Main

Campus 21,728 X

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.

aExcludes students not enrolled for credit.

bSchools that the Department determined to be eligible to participate in FDLP.

cSchools that Department records show to be eligible to participate in FFELP, but not in FDLP.

(104873) Page 28 GAO/HEHS-97-45 FDLP and FFELP Schools
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