Veterans Administration Education Loan Program Should be Terminated: Legislative Action Taken.

Abstract

Public Law. No. 95-476 provided additional authority to limit program participation to veterans attending high-cost schools. With the strengthening of the criteria used in defining allowable expenses for determination of financial need, loans awarded decreased from 28,908 in fiscal year 1978 to 7,761 in fiscal year 1980--a significant drop in program participation. Furthermore, the dollar value of loans disbursed dropped from $35.8 million to $6.7 million. A VA study notes that about 50 percent of the reduction appeared attributable to the new guidelines. Although overall program administration improved as a result of these changes, VA continued to experience severe problems with loan defaults. According to VA data, the cumulative loan default rate increased from 44 percent as of December 31, 1977, to 65 percent as of September 30, 1980. The default rate on matured loans for fiscal year 1980 was even higher--81 pecent.

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Document Details

Document Type
Technical Report
Publication Date
Aug 28, 1981
Accession Number
ADA106845

Entities

Organizations

  • United States Government Accountability Office

Tags

DTIC Thesaurus Topics

  • Active Duty
  • Availability
  • Congress
  • Education
  • Flight Training
  • Geographic Distribution
  • Geographic Regions
  • House Of Representatives
  • Job Training
  • Law
  • Schools
  • Statistical Samples
  • Students
  • Training
  • United States
  • Universities

Readers

  • Government Contracting/Procurement.
  • Mathematics or Statistics
  • Naval Personnel Management