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PEMD-85-10 1 (1985-09-27)

handle is hein.gao/gaobabfhr0001 and id is 1 raw text is: BY THE U,S, GENERAL ACCOUNTING OFFICE Report To The Honorable Paul Simon United States Senate Pell Grant Validation Imposes Some Costs And Does Not Greatly Reduce Award Errors: New Strategies Are Needed In 1982-83, in an effort to reduce the continuing problem of error in awarding Pell grants for postsecondary education, the Department of Education increased to 1.66 million the number of applicants who must document or validate their eligibility. This increased validation imposed some costs and burdens on the schools and had some impacts on students, although the estimated cost to institutions was less than 1 percent of the total Pell program, which provided $2.4 billion in grants in the 1982-83 school year. This smaller-than-i-percent cost (about $23 million) was not, however, offset, since only about $22 million was clearly saved. The Department's studies, while limited in some respects, identify continuing problems with award accuracy. The error is sizable: underawards and overawards totaled an estimated $649 million in 1982-83, despite the increased validation. The error is also persistent: the proportion of cases with student error has not decreased. Further, the Department's policy focused on student error and on overawards rather than on both institutional and student error and on both overawards and under- awards. A review of Department policies and procedures shows that improvements are needed in specifying error-reduction goals, developing and testing a broader set of strategies to meet these goals, coordinating the management of error-reduction efforts, and evaluating their effects. DS71 128006 0 . GAO/PEMD-85-10 N~Q, , T,%,X SEPTEMBER 27, 1985

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