Department of Education Fiscal Year 1995 Highlights
Improved control and accountability over student loan defaultsThe net outlays for student loan defaults have dropped significantly from $1.7 billion in fiscal year 1992 to $500 million in fiscal year 1995. In fiscal year 1995, $2.5 billion was paid out to cover defaulted student loans while $2.0 billion was collected on previous loan defaults. The Department's focus on improving collection tools, accountability measures and oversight will continue this trend into the future.
Increased direct loan program volume from 104 schools to approximately 1,350 schoolsThe Department continued the successful implementation of the William D. Ford Direct Loan Program to assist postsecondary students and their families. The program, which began on July 1, 1994, represented 5% of loan volume in the 1994-95 academic year with 104 schools. For the 1995-96 academic year the Department successfully expanded the program to approximately 1,350 schools representing 35% of loan volume. Borrowers are offered a variety of flexible repayment options to help avoid defaults. Independent studies have determined both students and school administrators overwhelmingly approve of the program, aimed at reducing bureaucracy, reducing Federal costs, and improving service for both students and schools.
Initiated improvements to management processes to serve America's learners betterThe Department has focused on improving processes to serve its customers better. The initiatives target streamlining programs, reducing paperwork, focusing on performance, and allowing internal and external customers to access the information they need. One example is an improved discretionary grant process reducing the number of process steps by 55% and improving communications with Department customers.