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Table 1.
Federal Family Education Loan (FFEL) program executive summary: FY 1966-FY 2000

This table provides summary information about FFEL program loan volume, defaults, expenditures, and receipts for FY 1966-FY 2000.

Loan volume commitments

• Since its inception, 109.9 million loans worth nearly $317.0 billion have been committed through the FFEL program. Approximately 56.2 percent of the loans and 67.9 percent of the dollar volume were committed in FY 1990-FY 2000.
  
  
• Annual FFEL loan volume increased each year from $12.3 billion in FY 1990 to $23.1 billion in FY 1994, but decreased in FY 1995 and FY 1996, to $21.0 and $19.7 billion, respectively. By FY 2000, annual loan volume had grown to $25.7 billion.
  
  
• The number of loans also decreased in FY 1995 and FY 1996 to 5.9 and 5.3 million, respectively, representing a 13.0 and 9.1 percent decrease from prior years. However, by FY 2000, the number of loans increased to 6.3 million.
  
  
• FFEL program annual loan volume commitments reached its highest level in FY 2000 when $25.7 billion were committed through 6.3 million loans. The annual number of FFEL loans reached its highest level in FY 1994 when 6.7 million loans worth $23.1 billion were committed.
  
  
• Between FY 1990-FY 2000, the average loan increased 48.2 percent in current dollars from $2,734 to $4,051. The typical annual increase in average loan amount was between 2.2 and 4.4 percent. But in FY 1993 and FY 1994, the average loan amount increased 10.0 and 8.1 percent, respectively, over prior years.

Defaults

• Cumulative guaranty agency (GA) payments made on defaulted loans to lenders were $38.9 billion in FY 2000, 73.1 percent of which were made between FY 1990 and FY 2000.
  
  
• Annual GA default payments to lenders fluctuated between a low of $2.0 billion in FY 1999 to a high of $3.2 billion in FY 1991.

Federal outlays

Federal outlays include payments made to lenders and guaranty agencies and the cost of collections. Major FFEL program outlays include interest benefits paid to lenders and reinsurance default claims paid to guaranty agencies. These two outlay components accounted for 68.4 percent of all FFEL program outlays in FY 2000.

• In FY 1990-FY 2000, the total federal outlays for the FFEL program fluctuated from a low of $5.1 billion in FY 1993 to a high of $6.5 billion in FY 2000. The greatest annual increase occurred in FY 1996 (12.8 percent), while the greatest decrease occurred in FY 1993 (10.7 percent).

Federal outlays to lenders

Federal outlays to lenders include interest benefits, special allowances, death and disability claims, bankruptcy claims, and Federal Insured Student Loan Program (FISLP) default claims.

• Interest benefits paid to lenders was $1.5 billion in FY 1990, grew in every year except FY 1993, and peaked at nearly $2.7 billion in FY 1996. By FY 2000, interest benefits paid to lenders had fallen to $2.2 billion. In FY 2000, interest benefits paid to lenders accounted for 34.6 percent of total federal outlays. (See table A.)
  
  
• After peaking at a level of $615 million in FY 1995, special allowances fluctuated between a high of $390 million in FY 1996 to a low of $222 million in FY 1999. In FY 2000 special allowances spiked at $1.4 billion, an increase of 511.7 percent from FY 1999. In FY 2000, special allowances accounted for 21.0 percent of total federal outlays. (See table A.)
  
  
• Death and disability claims increased each year between FY 1990 and FY 1999 from $57 million to $235 million. In FY 2000, however, death and disability claims decreased 9.4 percent to $213 million. In FY 2000, death and disability claims accounted for 3.3 percent of total federal outlays. (See table A.)
  
  
• Bankruptcy claims fluctuated significantly from FY 1990-FY 2000. Bankruptcy claims grew from $9 million in FY 1990 to a peak of $279 million in FY 1993. Claims then dropped considerably to $26 million in FY 1994. Beginning in FY 1995 bankruptcy claims grew steadily from $4 million to $135 million in FY 1999, and then dropped again to $85 million in FY 2000. In FY 2000, bankruptcy claims accounted for 1.3 percent of total federal outlays. (See table A.)
  
  
• FISLP default claims paid to lenders decreased from $17 million in FY 1990 to $8 million in FY 1996. FISLP default claims were not applicable in FY 1997-FY 2000.

To view the parent table for the following derivative table in an accessible format please go to http://www.ed.gov/finaid/prof/resources/data/fslpdata97-01/table1.xls.
These files are in Microsoft Excel format. If you do not have Excel, you can access the files by downloading the free Excel viewer at: http://office.microsoft.com/downloads/2000/xlviewer.aspx.

Federal outlays to guaranty agencies

Federal outlays to guaranty agencies include administrative cost allowances, loan processing and issuing fees, account maintenance fees, loan advances, reinsurance default claims, and refunds of excess reserves.

• In FY 1990-FY 1999, annual administrative cost allowances fluctuated from a low of $105 million in FY 1991 to a high of $312 million in FY 1994. In FY 2000, administrative cost allowances were not applicable.
  
  
• In FY 2000, $93 million in loan processing and issuing fees were paid to guaranty agencies. In FY 1999 and FY 2000, $188 million and $204 million were paid in account maintenance fees, respectively.
  
  
• Reinsurance default claims fluctuated from a low of approximately $2.2 billion in FY 2000 to a high of $3.2 billion in FY 1991. In FY 2000, reinsurance default claims accounted for 33.8 percent of total federal outlays. (See table A.)
• Refunds in excess of reserves were only reported in FY 1992 and FY 1993, when they increased from $8 to $14 million.

Collections cost

Collections costs were $11 million in FY 1990 and peaked at $138 million in FY 1996. In FY 1997-FY 2000, collections cost fluctuated from a low of $51 million in FY 1998 to a high of $97 million in FY 2000. In FY 2000, collections cost accounted for 1.5 percent of total federal outlays. (See table A.)

Federal income/receipts

Federal income includes FISLP insurance premiums, FISLP collections, guaranty agency reimbursements, advances returned, excess reserves, reinsurance fees, origination and other fees, IRS offsets-DCS assigned loans, IRS offsets-GA, mandatory assignment collections, and rehabilitation loans.

• In FY 1990-FY 1996, total federal income/receipts for the FFEL program increased annually from $1.2 billion in FY 1990 to $3.3 billion in FY 1996. After lower levels of total federal income/receipts in FY 1997 ($2.8 billion) and FY 1998 ($3.2 billion), this figure rose to $3.9 billion in FY 1999. In FY 2000, total federal income/receipts remained at $3.9 billion.
  
  
• The two major sources of FFEL program federal income are guaranty agency reimbursements and origination and other fees. In FY 1999, guaranty agency reimbursements were $1.4 billion, and origination and other fees were $839 million. Receipts from these two sources accounted for 57.6 percent of total federal income in FY 1999. (See table B.)
  
  
• In FY 1990-FY 1996, annual FISLP collections fluctuated between a low of $33 million in FY 1992 to a high of $55 million in FY 1996. FISLP collections were not reported in FY 1997-FY 2000.
  
  
• Annual income from guaranty agency reimbursements increased steadily from $466 million in FY 1994 to $1.4 billion in FY 1999. In FY 1999, guaranty agency reimbursements accounted for 35.8 percent of total federal income. (See table B.)
  
  
• Returned advances, excess reserves, and reinsurance fees all contributed only slightly to total federal income in FY 1990-FY 2000. (See table B.) Beginning in FY 1994, receipts from returned advances were zero, and beginning in FY 1992, receipts from excess reserves were zero. Beginning in FY 1996, receipts from reinsurance fees were zero.
  
  
• Between FY 1990-FY 2000, annual receipts from origination and other fees fluctuated from a low of $395 million in FY 1990 to a high of $1.1 billion in FY 1994. In FY 2000, receipts from origination and other fees was $941 million and accounted for 37.7 percent of annual federal income. (See table B.)
  
  
• Annual federal income from IRS offset-DCS fluctuated from $12 million to $35 million in FY 1990-FY 1993 and then was much higher, fluctuating from $211 million to $452 million in FY 1994-FY 1999. In FY 2000, federal income from IRS offset-DCS declined slightly to $411 million. However, IRS offset-DCS accounted for an increasing proportion of annual federal income from FY 1996 (6.6 percent) to FY 2000 (16.4 percent). (See table B.)
  
  
• In FY 1990-FY 2000, annual federal income from IRS offset-GA fluctuated from a low of $216 million in FY 1990 to a high of $570 million in FY 1999. In FY 2000, federal income from IRS offset-GA was $482 million and accounted for 19.3 percent of federal income. (See table B.)
  
  
• Mandatory assignment collections increased dramatically from $5 million in FY 1990 to $799 in FY 1996. Mandatory assignment collections then decreased in FY 1997 ($467 million) and FY 1998 ($428 million), but increased in FY 1999 ($612 million) and FY 2000 ($665 million). Mandatory assignment collections accounted for 26.6 percent of federal income in FY 2000 (see table B.)

To view the parent table for the following derivative table in an accessible format please go to http://www.ed.gov/finaid/prof/resources/data/fslpdata97-01/table1.xls.
These files are in Microsoft Excel format. If you do not have Excel, you can access the files by downloading the free Excel viewer at: http://office.microsoft.com/downloads/2000/xlviewer.aspx.

Cash outlays over receipts

The total cash outlays over receipts (total federal outlays minus total federal income) were approximately $4.5 billion in FY 1990 and $2.6 billion in FY 2000. The highest level of outlays over receipts was $4.9 billion in FY 1991, and the lowest level was $1.9 billion in FY 1999.

To view the following table in an accessible format please go to http://www.ed.gov/finaid/prof/resources/data/fslpdata97-01/table1.xls.
These files are in Microsoft Excel format. If you do not have Excel, you can access the files by downloading the free Excel viewer at: http://office.microsoft.com/downloads/2000/xlviewer.aspx.