Guaranteed Student Loan Program, Commissioner of Higher Education Financial Audit for the Fiscal Year Ended .. 1993

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Although the advance has been repaid, program regulations require that cumulative interest earnings on the advance be maintained for claim payments. Through June 30, 1993, GSL paid $204,587 in claims.
The Department of Education has not advanced any funds to GSL in any years subsequent to it sixth year of operations.
8. ADMINISTRATIVE COST ALLOWANCE The GSL Program is reimbursed by the U.S. Department of Education for a portion of its administrative costs. The administrative cost allowance reve
...nue is $614,660 for the fiscal year ended June 30, 1993, including the fourth quarter accrual of $45,964. This allowance is dependent upon federal appropriation. It represents one percent of the loans guaranteed for the fiscal year.
9. COLLECTION COSTS RETAINED When the Guaranteed Student Loan Program collects all or a portion of a defaulted loan, the Program is allowed to retain 30 percent of the recovery as a collection fee. This amount ($705,514 as of June 30, 1993) was recorded as collection revenue.


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