In accordance with a Legislative Budget and Audit Committee special request and the provisions of Title 24 of the Alaska Statutes, a review was conducted of the Alaska Commission on Postsecondary Education's experience with various collection contractors used to collect defaulted student loans. The primary purpose was to assess the success that private contractors have had in collecting student loans. The report begins with descriptions of the Alaska Student Loan Program, the Alaska Student Loan Corporation, and two collection agencies: Collect Alaska Network, Inc.; and Patterson and Van Abel. A historical background of the situation of defaulted loans is presented, along with an analysis of the gap in processing past due accounts, the default rate, prospective policy and approach, and attachment of permanent fund dividends. Information regarding collection proceeds and costs is also provided. Recommendations are made for improving internal controls involving collection contracts, and for further developing and implementing a policy for identifying and writing off uncollectible student loan accounts. The Commission's response to the findings and recommendations is attached. (JDD)