Student Loan Default Prevention Act of 1991

Student Loan Default Prevention Act of 1991 - Amends the Higher Education Act of 1965 (the Act) to lower the amount insured for any lender by the guaranteed student loan (GSL) program (under the Robert T. Stafford Student Loan 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.

Prohibits guaranty agencies from selling lists of student borrowers who have loans under the Stafford program.

Authorizes guaranty agencies to obtain information on the location of a student borrower from State licensing boards.

Limits the circumstances under which repayment deferments are granted for loans to parents (PLUS loans).

Revises provisions relating to credit bureaus, with respect to notices of delinquency, notices to borrowers, and limitations on reporting.

Revises disclosure requirements to set forth special rules under which supplemental loans for students (SLS loans) are not subject to a requirement for disclosure of projected monthly payment amounts if the lender provides the borrower with sample projections of monthly repayment amounts based on specified assumptions.

Requires that officers or directors of the accrediting agency or association not be affiliated in any way with a vocational school seeking or obtaining eligibility for the student loan insurance program.

Requires eligible lenders under the Stafford Student loan program to request pre-claims assistance within a specified period if the guaranty agency offers such pre-claims assistance for default prevention. Requires that guaranty agencies, within a specified period after receipt of such a request for such pre-claims assistance, to notify each eligible institution of the lenders request for such assistance on such loan.

Reduces certain special allowances paid to holders of eligible loans under the Stafford student loan program.

Requires eligible institutions under such program to submit certain information to the Secretary if they wish to change their accrediting agency or association.

Requires student borrowers, in order to receive any student loan under the Act, to provide the lender at the time of applying for such loan: (1) their driver's license number; and (2) the name and address of their next of kin.

Directs eligible institutions to require borrowers to supply the following exit interview information: (1) their address and the address of their next of kin; and (2) their driver's license number.

Directs the Secretary of Education (the Secretary) to establish and publicize a toll-free consumer telephone hotline for use by the public, to permit students who allege fraud or unfair practices by eligible institutions to inform the Department of Education.

Requires that an institution's graduation and placement statistics be audited by an independent public agency.

Sets forth restrictions on institutional promotional activities.

Requires institutions to use the same definition of academic year for all student assistance programs under the Act.

Establishes a tuition refund policy.

Set forth special rules relating to accreditation. Authorizes the Secretary, under a specified procedures, to limit, suspend, or terminate an eligible institution from student assistance program participation whenever: (1) the institution withdraws from a nationally recognized accrediting agency or association during a show cause or suspension proceeding against it; or (2) such an agency or association reports, under a specified arrangement with the Secretary, that the institution was denied accreditation.

Directs the Secretary to promulgate regulations specifying the legal restrictions and the requirements of eligible institutions relating to loan counseling and reporting requirements (including requirements and restrictions on disclosure of borrower records to third parties, the Fair Debt Collection Practices Act, and other applicable Federal laws).