Allopathic Medicine Health Professions Student Loans Program at Indiana University - Purdue University, Bloomington, Indiana

This letter report provides the results of our audit of the Allopathic Medicine Health Professions Student Loans (HPSL) Program at Indiana University - Purdue Univeristy (IU-PU). The HPSL program was implemented through the Public Health Service Act. The Health Resources Services Administration has overall management responsibilities for the program at the Federal level.

We determined that the University was appropriately using HPSL funds to provide loans to eligible medical students and was appropriately administering the HPSL funds. However, we are recommending that the University develop a means to identify loans that are about to exceed the ten-year repayment period.

In a letter dated July 23, 1998, Indiana University concurred with our recommendations and has begun implementing procedures to identify, at least semi-annually, uncollectible loans. The full text of the University's comments is attached as an appendix to this report.