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<classification authority="sudocs">GA 1.13:T-HEHS-96-158</classification>
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 <reportNumber>T-HEHS-96-158</reportNumber>
 <subject>Student loans</subject>
 <subject>Higher education</subject>
 <subject>Fraud</subject>
 <subject>Program abuses</subject>
 <subject>Vocational education</subject>
 <subject>Student aid programs</subject>
 <subject>Institution accreditation</subject>
 <subject>State programs</subject>
 <subject>Loan repayments</subject>
 <subject>Noncompliance</subject>
 <identifier>Pell Grant</identifier>
 <identifier>Dept. of Education Stafford Student Loan Program</identifier>
 <identifier>Federal Family Education Loan Program</identifier>
 <identifier>Federal Direct Student Loan Program</identifier>
 <identifier>Dept. of Education Perkins Student Loan Program</identifier>
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<titleInfo>
 <title>Higher Education: Ensuring Quality Education From Proprietary Institutions</title>
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<abstract>Pursuant to a congressional request, GAO examined whether proprietary
schools receiving Title IV funding are providing students with quality
educational programs. GAO found that: (1) fewer proprietary schools have
been accredited since 1992 because of increases in school closures and
oversight by accrediting agencies; (2) the proportion of proprietary
school students receiving Title IV aid fell from 80 percent in the
1986-87 school year to 67 percent in the 1992-93 school year; (3) loan
default rates fell, but remained substantially higher than those for
students attending nonprofit institutions; (4) the 1992 Higher Education
Act Amendments adopted a rule prohibiting schools from participating in
Title IV programs if they receive more than 85 percent of their revenue
from Title IV programs; (5) since the so-called 85-15 rule went into
effect, only four proprietary schools have notified the Department of
Education of their failure to meet the 85 percent standard; (6) schools
not meeting the standard had more than 85 percent of their revenue
coming from Title IV funding, improperly documented their eligibility,
misunderstood the reporting rules, or intentionally misrepresented their
findings; and (7) proprietary school students incur significant debt and
are often unable to find jobs in their fields.</abstract>
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<identifier type="preferred citation">GAO/T-HEHS-96-158</identifier>
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<note>Testimony</note>
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 <searchTitle>GAO/T-HEHS-96-158; Higher Education: Ensuring Quality Education From Proprietary Institutions;
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<subject>
 <topic>Student loans</topic>
 <topic>Higher education</topic>
 <topic>Fraud</topic>
 <topic>Program abuses</topic>
 <topic>Vocational education</topic>
 <topic>Student aid programs</topic>
 <topic>Institution accreditation</topic>
 <topic>State programs</topic>
 <topic>Loan repayments</topic>
 <topic>Noncompliance</topic>
 <topic>Pell Grant</topic>
 <topic>Dept. of Education Stafford Student Loan Program</topic>
 <topic>Federal Family Education Loan Program</topic>
 <topic>Federal Direct Student Loan Program</topic>
 <topic>Dept. of Education Perkins Student Loan Program</topic>
</subject>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Public Law 508 (101st Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 101-508</identifier>
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<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Public Law 325 (102nd Congress)</title>
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 <identifier type="public law citation">Public Law 102-325</identifier>
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