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Tables 49-54. Federal Family Education Loan (FFEL) program default dollars paid to lenders for Stafford Subsidized, Stafford Unsubsidized, Parent Loans for Undergraduate Students (PLUS), Supplemental Loan for Students (SLS), and Consolidation loans, by guaranty agency: FY92-FY96

Table 54 shows default claims paid to lenders, by guaranty agency, in FY92-FY96. The summary includes the percent change from the prior year, the percent share of total, ranking for each guaranty agency, and total FFEL program default dollars paid to lenders during these years. This information is also summarized for each type of FFEL loan: Stafford Subsidized, Stafford Unsubsidized, PLUS, SLS, and Consolidation in 49-53, respectively.

• The dollar amount guaranty agencies paid to lenders as a result of borrower defaults on FFEL program loans decreased between FY92 and FY95 (from $2.6 to $2.3 billion, respectively), but increased 16.2 percent in FY96. (See table E below for the default costs and percent change from prior year.)

• In FY92-FY96, default payment trends for the Stafford Subsidized loans were more similar to the overall FFEL program than were all other loan programs. Defaults paid to lenders of Stafford Subsidized loans decreased between FY92 and FY95, but increased in FY96.

• Guaranty agency default payments to lenders of PLUS and Consolidation loans increased each year between FY92 and FY96, as did default payments for Stafford Unsubsidized loans between FY94-FY96. Of these loan types, the number of default payments on Consolidation loans was the greatest.

• Guaranty agency default payments for SLS loans decreased in FY93-FY94, but increased slightly in FY95-FY96. (The SLS loan program ended in FY94; therefore all loan defaults reported in FY95-FY96 are for the loans that were disbursed in FY81-FY94.)

Table E. Total default dollar volume and percent change from prior years, by loan program:
FY92-FY96 (Subset of table 54)

- Not applicable.
NOTE: Dollars in thousands. Stafford Unsubsidized programs started in FY93, therefore no defaults are reported before FY94.
SOURCE: U.S. Department of Education, Office of Postsecondary Education, ED Form 1130.

• In FY92, HEAF made 18.4 percent of the total default payments paid to lenders participating in the FFEL program, while USAF made 10.7 percent of the total default payments. In FY93, the percentage paid by HEAF decreased by more than 50 percent, while the percentage paid by USAF increased by more than 50 percent; by FY96, USAF paid 27.1 percent of the total default payments paid to lenders.
• When HEAF and USAF were excluded, three guaranty agencies comprised a large portion of the total default payments paid to lenders in FY92-FY96. California, New York, and Texas, together, paid approximately 27 percent of the total default payments made to lenders during this period.
• Louisiana was the only state agency that reported making decreasing proportions of the total default payments paid to lenders each year between FY92 and FY96. Iowa, Kentucky, Montana, and Rhode Island all reported making increasing proportions of the total default payments paid to lenders each year during this period.
• Between FY92 and FY93, both Minnesota and South Carolina more than tripled their default payments to lenders participating in the FFEL program. Minnesota's default payments increased from $7.4 to $23.9 million, while South Carolina's default payments increased from $1.2 to $4.0 million.

*/ Reinsurance claims are discussed in table 43.

Table 48

Table 55-60