Student Financial Aid: Data Not Fully Utilized to Identify
Inappropriately Awarded Loans and Grants (Testimony, 07/12/95,
GAO/T-HEHS-95-199).

Although continuing to confront billions of dollars in annual payments
for defaulted student loans, the Education Department has not
effectively used available student aid data to enforce compliance with
federal requirements. For example, in fiscal years 1982 through 1992,
Department data indicate that about 43,500 ineligible students received
more than 58,000 loans totaling $138 million. Other data indicate that
students may have received loans in excess of their cost of attendance.
Further, the Department has not effectively used other data to identify
students who received (1) grants while attending two or more schools
concurrently or (2) additional financial aid despite being ineligible
because they had defaulted on previous loans. For award years 1989 to
1993, Pell Grant Program data showed that more than 48,000 students may
have received Pell Grant overpayments and more than 35,000 students may
have inappropriately received grants while attending two or more schools
concurrently. More than 100,000 students who had loans and later became
ineligible for additional aid may have received nearly 40,000 Pell
grants totaling $200 million.  Although the Department has taken steps
to strengthen program controls and systems used to administer its
student financial aid programs, while minimizing loan defaults and
programs abuse, program weaknesses persist. For example, data matches
have not prevented ineligible students from getting additional aid.
Further, the Department's reliance on schools to ensure compliance with
program requirements also needs to be strengthened.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-HEHS-95-199
     TITLE:  Student Financial Aid: Data Not Fully Utilized to Identify 
             Inappropriately Awarded Loans and Grants
      DATE:  07/12/95
   SUBJECT:  Student aid programs
             Data integrity
             Educational grants
             Loan defaults
             Ineligible grantees
             Management information systems
             Overpayments
             Aid for education
             Program abuses
             Student loans
IDENTIFIER:  Federal Family Education Loan Program
             Federal Family Education Loan Program Information System
             Pell Grant
             Dept. of Education National Student Loan Data System
             Dept. of Education Pell Grant Recipient and Financial 
             Management System
             
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