Montana Guaranteed Student Loan Program, Commissioner of Higher Education : Performance Audit Report 1992

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The program reviews function at MGSLP could be a key method for measuring the program's goal of assuring quality and integrity.
Current program review procedures emphasize training and technical assistance to schools and lenders rather than coordi- nating these activities with oversight of the program. Program review results could be used to identify potential training areas.
The following sections include recommendations that could improve program oversight.
Which Schools and Lenders are Revie
...wed Due to federal requirements, schools and lenders with the top ten loan dollar volume are first priority for program reviews. State- wide monitoring of other units participating in the loan program is limited. There are schools and lenders that have never been reviewed by MGSLP staff. Other lenders have not been reviewed in over eight years. Lenders with low loan activity can have high default rates. Based on the number of reviews cur- rently being completed, the same lenders and schools are reviewed repeatedly while others may not receive in-depth agency monitoring for extended periods of time.

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