Recommendations For Improved Management Of The Federal Student Aid Programs

Over the last five years, both Congress and the Dept. of Education's Inspector General have made 205 recommendations related to fraud and abuse in student aid programs, and for-profit trade schools alleged fraud and abuse under the Pell Grant and Federal Family Education Loan Programs. These two programs provided 10 million loans totaling nearly $29 billion. This report determines the status of the Education Dept's. actions in response to various governmental recommendations, and the reasons the Dept. gave for not acting on some recommendations.

Federal financial aid for postsecondary education students involves both large expenditures and a complex distribution system. The accuracy of the needs-based award process and the system of accountability required of the 8,000 institutional participants are the focus of this book. It assesses the current measures of system quality and possible alternatives, such as a total quality management approach. The analysis covers steps to eliminate sources of errorâ€"by reducing the complexity of the application form, for example. The volume discusses the potential for a risk-based approach for verification of applicant-supplied information and for audit and program reviews of institutions. This examination of the interrelationships among the aid award and quality control activities will be of interest to anyone searching for a more efficient aid system. The book can also serve as a case study for other government agencies seeking to examine operations using modern quality management principles.