Guaranteed Student Loan Program, Commissioner of Higher Education Financial Audit for the Fiscal Year Ended .. 1991

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The remaining portion (approximately 5 percent) were loaned under a security lending agreement with the state's agent.
4. DUE FROM FEDERAL GOVERNMENT The Guaranteed Student Loan Program pays individual lending institutions for any loans that have been defaulted or are unpaid due to the death or permanent disability of the borrower. The GSL program then seeks reimbursement from the Department of Education (D.E.) for payments made to lenders for the death, permanent disability, and default claims
.... The extent of this outstanding activity is shown below: Claims due from D.E. $1,281,185 Plus ACA 4th quarter (Note 6) 82.336 Total due from Federal Government $1.363.521 5. RESTRICTED FUND BALANCE This fund balance accounts for all interest earnings on the advance received from Department of Education. Program regulations require these interest earnings be maintained for claim payments. Through June 30, 1991 GSL has paid $195,224 in claims.
6. ADMINISTRATIVE COST ALLOWANCE The Administrative Cost Allowance revenue is $548,855 for the fiscal year ended June 30, 1991, including the 4th quarter accrual of $82,336.


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