Federal Student Loan Programs Data Book FY94-FY96
Tables 55-60. Federal Family Education Loan (FFEL) program collections on defaulted loans for Stafford Subsidized, Stafford Unsubsidized, Parent Loans for Undergraduate Students (PLUS), Supplemental Loan for Students (SLS), and Consolidation loans, by guaranty agency: FY94-FY96
Collections are repayments on defaulted loans. Once the guaranty agency pays off a default claim, the lender transfers the account to that guaranty agency. The guaranty agency is then responsible for seeking out the borrower and collecting on the defaulted loan(s). If the guaranty agency is unable to collect from the borrower, it may turn the account over to the Department of Education. In FY93, it became mandatory that all accounts that have had no collection activity within the last 3 years be assigned to the Department of Education for collection; these funds are referred to as "mandatory assignments."
Table 60 shows collections on defaulted loans, by guaranty agency, in FY94-FY96. The information is presented for each FFEL program (Stafford Subsidized, Stafford Unsubsidized, PLUS, SLS, and Consolidation in tables 55-59, respectively. All tables report the percent change, percent share of total, and guaranty agency rank.
Table F. Total dollar volume and percent change of program collections on defaulted dollars, by loan program: FY94-FY96 (Subset of table 60)
|
FY94 |
FY95 |
FY96 |
Stafford Subsidized |
$875,948 |
$955,750 |
$1,118,304 |
|
Percent change from prior year |
- |
9.1 |
17.0 |
Stafford Unsubsidized |
10 |
414 |
4,077 |
|
Percent change from prior year |
- |
4235.9 |
884.8 |
PLUS |
35,365 |
51,647 |
74,098 |
|
Percent change from prior year |
- |
46.0 |
43.5 |
SLS |
98,953 |
135,360 |
194,994 |
|
Percent change from prior year |
- |
36.8 |
44.1 |
Consolidation |
17,345 |
28,569 |
38,870 |
|
Percent change from prior year |
- |
64.7 |
36.1 |
FFEL total |
1,027,620 |
1,171,740 |
1,430,343 |
|
Percent change from prior year |
- |
14.0 |
22.1 |
- Not applicable.
NOTES: Dollars in thousands. Details may not add to totals due to rounding. SOURCE: U.S. Department of Education, Office of Postsecondary Education, ED Form 1130.
- From the table above, it can be noted that FFEL program collections on defaulted loans increased by 14.0 and 22.1 percent between FY95 and FY96, respectively. This trend is similar to that reported for the Stafford Subsidized program collections but differs from that reported for the PLUS, SLS and Consolidation collections activity.
- The large increases in percent change reported for Stafford Unsubsidized, a program that began in FY93, represents the rapid growth of this program.
- Increases in collections activity for PLUS, SLS, and Consolidation loans were considerably larger than those reported for overall FFEL program totals. In fact, between FY94 and FY95, collections on Consolidation loans increased by 64.7 percent.
- In FY94-FY96, USAF collections on defaults represented the largest portion of FFEL program collection activity. This proportion increased each year from 12.7 percent in FY94 to 18.2 and 25.2 percent in FY95 and FY96, respectively.
- In FY94 and FY95, the share of collections on defaulted loans made by New York and California represented the largest portion of default dollars collected among state agencies. In FY96, the share of Texas and California (20.7 percent) represented the highest proportion of FFEL program collections.
- Overall, collection activity increased at most of the guaranty agencies. Between FY94 and FY95, 28 guaranty agencies reported an increase in their collection activity, compared to 15 who reported a decrease. New Mexico was the guaranty agency that reported the largest decrease in percent change during this time period (26.3 percent). Between FY95 and FY96, 30 guaranty agencies reported an increase in their collection activity, compared to 12 who reported a decrease. The largest change was reported for New Mexico, which more than doubled its collection activity, while the largest decrease was reported for Alabama, which reported a 53.4 percent drop in its collection activity between these 2 years.
- In FY94-FY96, few guaranty agencies changed their collection activity enough to indicate a rank change of more than 8 points. Between FY94 and FY95, Nebraska and Minnesota increased in rank by 5 and 8 points, respectively, while Maryland decreased by 5 points. Between FY95and FY96, Alabama decreased in rank by 6 points, while Georgia, New Hampshire, and New Mexico increased in rank by 6, 6, and 8 points, respectively.
Table 55. Federal Family Education Loan (FFEL) program collections on defaulted loans for Stafford Subsidized loans, by guaranty agency: FY94-FY96
Table 56. Federal Family Education Loan (FFEL) program collections on defaulted loans for Stafford Unsubsidized loans, by guaranty agency: FY94-FY96
Table 57. Federal Family Education Loan (FFEL) program collections on defaulted loans for Parent Loans for Undergraduate Students (PLUS) loans, by guaranty agency: FY94-FY96
Table 58. Federal Family Education Loan (FFEL) program collections on defaulted loans for Supplemental Loan for Students (SLS) loans, by guaranty agency: FY94-FY96
Table 59. Federal Family Education Loan (FFEL) program collections on defaulted loans for Consolidation loans, by guaranty agency: FY92-FY96
Table 60. Federal Family Education Loan (FFEL) program collections on defaulted loans for Stafford Subsidized, Stafford Unsubsidized, Parent Loan for Undergraduate Students (PLUS), Supplemental Loan for Students (SLS), and Consolidation loans, by guaranty agency: FY94-FY96
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Table 49-54
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