GAO Faults Department With Lax Oversight In FFELP, Calls For Interim Guidance On Inducements

Abstract:

The Government Accountability Office (GAO) gave the Department of Education failing grades in meeting its oversight responsibilities of the FFEL program yesterday.

According to a report from the GAO’s office, the Department currently lacks the necessary tools, policies, and procedures to adequately oversee the administration of the program. The GAO called on the Department to issue interim guidance on inducements to ensure school and lender compliance prior to July, 2008 when the loans Notice of Proposed Rulemaking is scheduled to take effect. In response, the Department is ramping up 68 school and lender reviews to gather information on possible improprieties.

The full article was originally published in NASFAA’s Today’s News on 8/2/07.