Accession Number:

ADA106845

Title:

Veterans Administration Education Loan Program Should be Terminated: Legislative Action Taken.

Descriptive Note:

Corporate Author:

GENERAL ACCOUNTING OFFICE WASHINGTON DC HUMAN RESOURCES DIV

Personal Author(s):

Report Date:

1981-08-28

Pagination or Media Count:

15.0

Abstract:

Public Law. No. 95-476 provided additional authority to limit program participation to veterans attending high-cost schools. With the strengthening of the criteria used in defining allowable expenses for determination of financial need, loans awarded decreased from 28,908 in fiscal year 1978 to 7,761 in fiscal year 1980--a significant drop in program participation. Furthermore, the dollar value of loans disbursed dropped from 35.8 million to 6.7 million. A VA study notes that about 50 percent of the reduction appeared attributable to the new guidelines. Although overall program administration improved as a result of these changes, VA continued to experience severe problems with loan defaults. According to VA data, the cumulative loan default rate increased from 44 percent as of December 31, 1977, to 65 percent as of September 30, 1980. The default rate on matured loans for fiscal year 1980 was even higher--81 pecent.

Subject Categories:

  • Administration and Management
  • Humanities and History

Distribution Statement:

APPROVED FOR PUBLIC RELEASE