Federal Student Loan Programs Data Book FY94-FY96 / Table 2: Federal Direct Loan Program (FDLP) cash flow as of September 30th: FY 94-FY96

Federal Student Loan Programs Data Book FY94-FY96

Table 2. Federal Direct Loan Program (FDLP) cash flow as of September 30th: FY 94-FY96

This table shows the cash flows of the FDLP. It was designed to be equivalent to the information provided in the Executive Summary (table 1) which provides loan volume, along with cash outlays and cash receipts for the FFEL program. Because Direct Loans is different in that the government makes the loans and there are far fewer entities involved, the cash flows are much simpler. The basic cash outflows (costs) come from interest paid to the Treasury and payments made to schools to cover their administrative expenses (This item has been eliminated). The basic inflows come from the collections of interest and principal from borrowers repaying their loans and from the collection of fees.

The number of loans committed in FY96 (2.6 million) is approximately twice the number committed in FY95 (1.3 million). Similarly, the dollar amount committed in FY96 ($9.4 billion) is almost double that committed in FY95 ($5.1 billion).

The costs to the Department in FY96 included loans written off ($3.6 million), payment of school origination fees ($19.5 million), and interest paid to the Treasury ($884.2 million), with the latter constituting the highest proportion of that cost.

In FY96, collections of regular and defaulted principal ($211.6 million), interest ($114.8 million) and origination fees ($317.8 million) represented the highest source of income to the Department.

NOTE: The FDLP became operational in July 1994, consequently, the FY94 FDLP data include only one fiscal quarter of activity. During the first year of operation, FDLP loans were restricted to a small number of institutions. The FDLP makes loans directly available to borrowers, while the FFEL program makes loans available to borrowers through private lenders and guaranty agencies. Both programs offer the same loan programs: Stafford Subsidized, Stafford Unsubsidized, PLUS, and Consolidation loans.

Table 2. Federal Direct Loan Program (FDLP) cash flow as of September 30th: FY 94-FY96

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Table 1

Table 3