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089573 1 (1976-03-11)

handle is hein.gao/gaobacvpo0001 and id is 1 raw text is: Y> -.UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 1ANPOWER AND WELFARE L', A 19 DIVISION The Honorable.Terrel H. Bell Commissioner of Education Lo9s5s3 Office of Education Department of Health, Education, and Welfare Dear Dr. Bell: We now have underway a review of the Office of Education's Basic Educational Opportunity Grant (Basic Grant) proaram author- ized by the Higher Education Act of 1965, as amended (20 U.S.C. 1070a). Under this program, students may aooly for grants to help defray the cost of postsecondary education. Our work is beinq conducted at the Office of Education headauarters, the American College Testinq Program, and selected secondary and postsecondary educational institutions. Part of our review is directed toward assessina the ade- quacy of the proaram's refund oolicv and determinina whether institutLons arc Prooerly calculatn an,.! creditin refunds C the Basic Grant account. This letter is to anarise you ci our interim observations on oroblems concerning this refund colic%. Basic Grants are intended to be the floor of financial l, tat isza I StrInL ~':tr2c&~ al'i -D students. Students are not required to recay the arant unless they droo out of school within an institution's refund ceriod. Both the nroiran reaulations and the handbook that is distri- buted to certicipatiin institutions' financial ald officers con- tain criteria for handlinn such refunds. These criteria prov-de for institutions to return part of the student's refund to the program. If the student has received other Federal aid, any reaining monies may be subject.to these orocrams' refund o0oL- cies. Thus far we have comoleted our work at 12 postsecondary l nstitutions. Refunds were due studenits w,,ho had drooced out ,during the 1974-75 school year at 10 of the 12 in~stitutions Nine of the 12 schools did niot follow the B, asic **rant refund policy. Some reasons for this were --th y were unaware that an official refund policy existed; --they misundetstood the refund policy; H u mllll Thllllll I i m IIIIIIIIIIIIIIIIIIIHuifffliM~llffTttT~~ lIIlllulli HIII II l IIII IIIII

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