Student Loan Default Prevention Act of 1989

[AI summary unavailable — showing source text] Student Loan Default Prevention Act of 1989 - Amends the Higher Education Act of 1965 (the Act) to require delayed disbursement for first-year students at high default rate institutions of Federally-insured student loans (FISL) and guaranteed student loans (GSL) under the Robert T. Stafford Student Loan Program. Lowers the amount insured for any lender by the GSL program from 100 percent to 95 percent of the unpaid principal if one-third or more of the principal outstanding during any consecutive two-year period on the lender's loans consists of loans to students for attendance costs at a higher default rate institution. Defines "high default rate institutions" as ones with a default rate of 20 percent or more. Directs the Secretary of Education (the Secretary) to define "default rate" by regulation. Adds requirements with respect to disbursement and endorsement of student loans. Requires multiple disbursements, with minimum intervals. Sets forth other requirements for the initial disbursement, withholding of second disbursement, and aggregation of multiple loans, with specified exceptions. Prohibits an institution from being certified or recertified as eligible for the Stafford or…