October 12, 2007

Education Dept. Will End Program to Avert Defaults

By KELLY FIELD

The U.S. Department of Education has announced plans to end a program that its supporters say has helped drive down the default rates on student loans.

Under the program, the department reimburses a select group of guarantee agencies on the basis of their success in averting defaults, rather than on the basis of their collections on defaults. Congress created the program in 1998 to encourage guarantee agencies to focus more of their efforts on preventing students from defaulting in the

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