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OSI-95-13R 1 (1995-01-10)

handle is hein.gao/gaobacksx0001 and id is 1 raw text is: (3 O United States GAO General Accounting Office Washington, D.C. 20548 Ofrice of Special Investigations B-259500 January 10, 1995 The Honorable Sam Nunn Ranking Minority Member Permanent Subcommittee on Investigations Committee on Governmental Affairs United States Senate Dear Senator Nunn: In your capacity as the then Chairman, Permanent Subcommittee on Investigations, Senate Committee on Governmental Affairs, you requested that we investigate whether abuses or fraud were occurring within the Pell Grant Program, specifically by a group of private, parochial schools operating in the New York City area. We reported the results of our investigation in a hearing held on October 27, 1993.1 Subsequently, you asked that we extend our inquiry into a reported limitation that the National Collegiate Athletic Association (NCAA) had placed on the amount of Pell Grant awards that college athlete scholarship recipients could receive. Pell Grants (formally called Basic Educational Opportunity Grants) are federally funded grants to help undergraduate students from low-income families finance their postsecondary education; grant amounts are based on need. The program was authorized in 1972. Between the 1973-74 and 1991-92 school years, approximately 46 million students were awarded Pell Grants totaling $52 billion. In the 1991-92 school year (the year for which we examined data), the maximum Pell Grant award was $2,400; and 6,855 schools participated in the program. Approximately 3.8 million students received awards of $5.79 billion, with the average grant totaling $1,530. We found that the NCAA had placed a $1,700 limit on the amount of Pell Grant award that an NCAA Division I student athlete could receive in combination with a full grant-in- 'Student Financial Aid Programs: Pell Grant Program Abuse (GAO/T-OSI-94-8, Oct. 27, 1993). GAO/OSI-95-13R NCAA Student Athlete Pell Grants

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