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Abuses in Federal Student Grant Programs

Author: United States. Congress. Senate. Committee on Governmental Affairs. Permanent Subcommittee on Investigations

Publisher:

Published: 1994

Total Pages: 562

ISBN-13:

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It appears that many of the problems plaguing the Federal Student Aid Programs are also undermining the Pell Grant program, not so much from dishonesty on the part of students, but by dishonesty on the part of schools. This document presents testimony and prepared statements concerning the allegations of fraud, abuse, and mismanagement in the Federal Pell Grant program and the effectiveness of the Department of Education in detecting and responding to these problems. Two-thirds of the document is an appendix of 96 exhibits of selected documents, letters, affidavits, and reports from witnesses in order of their appearance before the committee. Among the witnesses testifying before the committee were the following individuals: Senator Claiborne Pell of Rhode Island; Richard C. Stiener, Director of the Office of Special Investigations, U.S. General Accounting office; James B. Thomas, Jr., Inspector General, U.S. Department of Education; David A. Longanecker, Assistant Secretary, Office of Postsecondary Education, U.S. Department of Education; and Sister Janet Fitzgerald, President of Molloy College, Long Island, New York. (GLR)

Abuses in Federal Student Grant Programs Proprietary School Abuses

Author: United States. Congress. Senate. Committee on Governmental Affairs. Permanent Subcommittee on Investigations

Publisher:

Published: 1996

Total Pages: 256

ISBN-13:

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The purpose of this hearing was to probe a pattern of fraud and abuse in the Pell Grant Program for postsecondary students, focusing specifically on the IADE American Schools, a for-profit vocational school with campuses in the Los Angeles (California) area and serving primarily Hispanic students. In his opening remarks Senator Roth detailed a history of prior abuses of the program and lax oversight by the Department of Education. Senator Nunn, after summarizing a five-year series of hearings, reports, and recommendations, testified that a year-long investigation of the IADE schools had uncovered serious misconduct, abuses, and possibly fraudulent practices. He charged that the Department was not only incapable of preventing a fraudulent institution from participating in student aid programs but was also unable to detect or pursue such fraudulent activities. Following the senators' opening statements, the Subcommittee team investigating IADE schools reported its findings. David Longanecker, Assistant Secretary for Postsecondary Education, then reviewed the Department's procedures and policies, stating that oversight was being improved. The final testimony was a report from the U.S. General Accounting Office assessing the Department's effectiveness in using student aid data to ensure compliance and prevent abuses. An appendix contains the texts of the witnesses' prepared statements. 56 exhibit statements are listed separately. (CH)