OSFA's services continue to benefit the state, and the office has implemented some of the recommendations made by our 2003 review. However, the office would benefit from additional changes to its performance measures, loan default prevention program, and organizational structure and placement. Specifically,

• OSFA needs to address federal policy changes and competition that have inhibited its revenue growth;
• while OSFA has improved its performance measures, additional changes are needed to better report its outcomes to the Legislature;
• OSFA continues to have one of the nation's highest default rates on student loans; however, in July 2004 it began to enhance its default prevention plan; and
• changes in OSFA's organizational structure would enhance its effectiveness as a student loan guaranty agency.