Federal Student Loan Programs Data Book FY94-FY96
Table 45. Federal Family Education Loan (FFEL) program annual and cumulative default dollars and collections: FY86-FY96
This table shows the total number of default dollars and collections for each FFEL program. In addition, the percent change from prior year, percent share of FFEL program total, and cumulative totals for default and collection activity are also provided for total FFEL program and each of the FFEL programs for FY86-FY96.
- Between FY86 and FY96, the number of collections increased each year. As a result of this increase and the corresponding decreases in defaults following FY91, the gap between defaults and collections narrowed considerably. For example, for every dollar that defaulted in FY86, $0.31 was collected; for every dollar that was defaulted in FY96, $1.04 was collected.
- The number of default dollars paid to lenders participating in the FFEL program more than doubled between FY86 and FY91, reaching a peak of $3.2 billion in FY91. Following FY91, default dollars paid to lenders gradually decreased, and by FY95, defaults dropped by nearly one billion dollars. In FY96, default dollars paid to lenders increased by 16.0 percent from the prior year.
- In FY86-FY96, the number of Federal Insured Student Loan Program (FISLP) default dollars paid to lenders and the annual collections decreased each year (from $80 to $1 million and $129 to $7 million, respectively). All data reported on FISLP loans in this period represent defaults and collections on loans granted between FY66 and FY84. The FISLP program ended in FY84.
- The Stafford Subsidized loan program followed a pattern similar to the one described for the FFEL program as a whole. Between FY86 and FY91, the default dollars paid to lenders increased each year, decreased each year between FY92 and FY95, and increased by 9.0 percent in FY96.
- The default dollars paid to lenders of Stafford Unsubsidized loans increased each year between FY94 and FY96, with the greatest increase occurring in FY95. Collections also increased, but at a slower rate. In FY96, collections were $4 million and defaults were $95 million.
- The numbers of default dollars paid to lenders and annual collections for Parent Loan for Undergraduate Students (PLUS) loans increased between FY86 and FY96, but collections increased at a faster rate. For example, in FY95-FY96, default dollars paid to lenders increased by 2.6 and 15.4 percent, respectively, while collections increased by 46.0 and 43.5 percent, respectively. As a result, the gap between defaults and collections for PLUS loans narrowed during these years.
- Between FY86 and FY90, the default dollars paid to lenders of Supplemental Loan for Students (SLS) loans increased each year, peaked at $636 million in FY90, dropped dramatically (30.1 and 12.9 percent) in FY92-FY93, and remained relatively stable in FY94-FY96. Collections, on the other hand, fluctuated during these ten years, but increased overall, from $1 million in FY86 to $195 million in FY96. Data reported on SLS loans in FY95 and FY96 represent loans granted between FY81 and FY94. The SLS program ended in FY94.
- The default dollars paid to lenders and annual collections for Consolidation loans increased between FY88 and FY96, but at different rates. During this period, default payments increased from $1 million to $343 million, while collections increased from below $500,000 to $39 million. In FY96, Consolidation loans accounted for 12.9 percent share of the total number of FFEL program default dollars paid and 1.4 percent of the total number of collections.
Table 45. Federal Family Education Loan (FFEL) program annual and cumulative default dollars and collections: FY86-FY96
Table A-45. Federal Family Education Loan (FFEL) program annual and cumulative default dollars and collections: FY66?FY96
Graph 45a. Federal Family Education Loan (FFEL) program annual default and collections (FISLP): FY86-FY96
Graph 45b. Federal Family Education Loan (FFEL) program annual default and collections (Stafford Subsidized): FY86-FY96
Graph 45c. Federal Family Education Loan (FFEL) program annual default and collections (Stafford Unsubsidized): FY86-FY96
Graph 45d. Federal Family Education Loan (FFEL) program annual default and collections (PLUS): FY86-FY96
Graph 45e. Federal Family Education Loan (FFEL) program annual default and collections (SLS): FY86-FY96
Graph 45f. Federal Family Education Loan (FFEL) program annual default and collections (Consolidation): FY86-FY96
Graph 45g. Federal Family Education Loan (FFEL) program annual default and collections (FEEL program total): FY86-FY96
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Table 44
Table 46