This testimony before the House Subcommittee on Postsecondary Education addresses the need for improving student financial aid programs administered by the Department of Education, and in particular, the Stafford Student Loan Programs. The testimony begins with a brief review of the default problems involving student loans. Next, an examination is provided of the Congressional, Department of Education, and General Accounting Office efforts in addressing student loan defaults. The improvements needed to correct vulnerabilities in the Stafford Program are addressed, followed by a discussion of the procedures for determining school eligibility that put the Government and the student at risk. Next, several recommendations are presented for solving or lessening the occurrence of default problems in student loan programs. It is noted in the testimony that many of the vulnerabilities and weaknesses in federal student aid programs are related to the Department of Education's administration of the programs, as well as to provisions of the Higher Education Act. An attachment provides a list of selected General Accounting Office reports on higher education issues since 1986. (GLR)