An overview investigation of two U.S. Department of Education college construction loan programs was conducted by a House of Representatives' subcommittee. Both programs, the College Housing Loan Program (CHLP) and the Academic Facilities Loan Program (AFLP), were created by Congress in response to upsurges in college enrollments. CHLP provides loans for such purposes as building new housing and the conversion or renovation of existing structures, while the AFLP allows for the construction, reconstruction, and renovation of academic facilities. Loans under the programs have been at low interest rates (about 3 percent) and long terms (up to 40 years). Study objectives were to determine: the efficiency of the Department's management of the programs, violations of law and regulations by borrowers participating in the programs; the adequacy of the Department's procedures for handling colleges in default on their federal loans, and the advisability of a departmental regulation to allow discounted prepayment of program loans during fiscal year 1984. The 3-month inquiry included examination of program documents and loan files at central program offices, interviews with program staff, and review of audits of delinquent borrowers. A hearing on the programs was also held. Findings and recommendations are included. (SW)