Guaranteed Student Loan Default Reform Act of 1988

Guaranteed Student Loan Default Reform Act of 1988 - Amends the Higher Education Act of 1965 (the Act) to revise guaranteed student loan program provisions relating to default rates.

Requires guaranty agencies to meet certain data system information requirements. Includes among such requirements information on loan delinquencies and defaults, as well as on changes in enrollment or repayment status of borrowers whose loans are delinquent or in default.

Requires guaranty agencies furnishing information to eligible institutions to include information on students who are delinquent in repaying loans (as well as those in default). Allows such information to be in the form of monthly lists, identifying the date on which the delinquency or default commenced. Requires eligible institutions to: (1) review such information and report any corrections to the guaranty agency; and (2) make certain additional information relevant to loan collection available to guaranty agencies.

Requires eligible lenders or holders of loans to: (1) furnish to the appropriate guaranty agency a monthly list of the names of student borrowers who are delinquent, their last known address, the remaining loan balance, and the date the loan became delinquent; and (2) notify the borrower and eligible institution within 30 days of the sale or other transfer of the loan.

Requires guaranty agencies to submit to eligible institutions monthly lists of any student borrower who is delinquent, his or her last known address, the remaining loan balance, and the date the loan became delinquent. Requires eligible institutions to review such information and report to the guaranty agency any corrections and other relevant information that may assist in locating the borrower.

Sets forth provisions as to the basis and timing of limitation, suspension, and termination actions against eligible institutions. Prohibits any such action unless specified criteria are met.

Sets forth a formula for default rate computation. Defines "high risk students" and "successful high risk students" for purposes of such computation.

Requires eligible institutions under the guaranteed and direct student loan programs to require all student borrowers to sign a form outlining loan terms and borrower rights and responsibilities. Requires withholding of academic transcripts to a borrower who is in default until the institution receives notice that the borrower has reentered payment status.

Requires eligible institutions to give student borrowers a statement on the consequences of defaulting on a guaranteed student loan.

Requires student borrowers, in order to be eligible for any loan under the Act, to submit to the institution of higher education their current address, name and address of next of kin, and driver's license number.

Requires each eligible institution to require, during the exit counseling, student borrowers to submit their address, name and address of next of kin, and driver's license number.

Requires eligible institutions under the guaranteed student loan program to develop a default prevention policy and plan. Prohibits the Secretary of Education (the Secretary) from promulgating regulations on such policy and planning requirements. Directs the Secretary to develop a plan for disseminating information about default prevention programs for eligible institutions, lenders, and guaranty agencies.

Expresses the sense of the Congress that the income tax refund offset program for the collection of defaulted student loans should continue.

Provides for quarterly disbursements of guaranteed student loans.

Directs the Secretary to report annually to the Congress on the progress made under the guaranteed student loan program to address the default problem. Requires such report to also contain data showing default rates by eligible institutions, guaranty agencies, and eligible lenders.