Student Financial Aid

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.