Page:United States Statutes at Large Volume 100 Part 2.djvu/481

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1583

SEC. 1307. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated $2,700,000 for the fiscal year 1987 and for each of the 2 succeeding fiscal years to carry out the provisions of this part. PART B—GENERAL ACCOUNTING OFFICE REPORTS SEC. 1311. STUDY OF PRACTICES OF STATE GUARANTY AGENCIES AND MULTISTATE GUARANTORS UNDER THE GUARANTEED STUDENT LOAN PROGRAM.

(a) STUDY REQUIRED.—The Comptroller General shall conduct a complete study of the practices of State guaranty agencies and multistate guarantors under the guaranteed student loan program authorized by part B of title IV of the Act. The study shall investigate, on a comparative basis— (1) due diligence practice of lenders; (2) default rates and recovery rates on student loans; (3) changes in loan volume; (4) methods of soliciting student borrowers; (5) potential for fraudulent double borrowing by students; (6) participation agreements between the types of guarantor and lenders; (7) eligible institution participation agreements; (8) adequacy of reserved funds in relation to guaranty commitments made by the agency and the default risk which such commitments represent, as reflected by the socio-economic background of the borrowers, the category of institution attended, and the historical experience of the agency; I (9) types of services provided to lenders, eligible institutions, and borrowers; (10) use of funds generated through participation in the guaranteed student loan program by amount and nature of expenses for administrative support for programs other than the guaranteed student loan program; (11) to what extent the guarantors meet the requirements of truth-in-lending provisions; (12) profile of borrowers and defaulters of loans guaranteed by the agency and an assessment of the default risks inherent in such loans; (13) coordination of the loan guaranty program with grant programs; (14) general student access to loan assistance; and (15) need for administrative cost allowances by particular guaranty agencies in relation to the default risk faced by the agency, the administrative costs incurred, or needed to be incurred by the agency, and other factors relevant to the cost of guaranteeing loans under the program. (b) REPORT.—The Comptroller Cieneral of the United States shall prepare and submit a report, not later than 2 years after the date of enactment of this Act, to the Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives on the flndings of the study required by subsection (a) of this section, together with such recommendations as the Comptroller General deems appropriate.

20 USC 1071 ^°^-

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