Originally Posted by StChrisCS

I think it's appropriate; the grandfather clause should be removed. The US Gov. shouldn't be providing loans to US Citizens that attend foreign schools.

From what I have read, the rate of default for loans that were used to fund the education of US citizens outside of the US was dramatically higher than that of US citizens that were educated inside the US. There is no reason to further burden our government, the tax payers, or the Stafford loan program with this issue. There are plenty of private loans through private corporations available to US citizens that want to attend schools outside of the US.

Originally Posted by DOE comments

As stated in your draft report, foreign schools offer unique
educational opportunities for Americans and help ensure that our
students have a wide range of options in pursuing postsecondary
education. It is noteworthy that only 26,591 U.S. students received
$255,940,029 in FFELP loans in fiscal year 2002 to attend postsecondary
education institutions located outside the U.S. It is also important to
note that the average cohort default rate for students that attended
these institutions was only 2.6 percent in FY 2000 --nearly half the
rate for students that attend institutions in the U.S