A study was done to investigate whether Supplemental Educational Opportunity Grants (SEOG) were being awarded to students with the lowest expected family contribution (EFC). The study used data from a 1991 Department of Education study based on a sample of 25,000 undergraduate students drawn from over 1,100 postsecondary institutions across the nation. Information was also obtained from a sample of 10 public and 10 private four-year institutions that each received one million dollars or more in SEOG funds. Researchers discussed with each institution's financial aid administrator the practices they used in awarding SEOG funds. The results indicated that most SEOG funds are going to intended recipients: 86 percent of funds were awarded to students with Pell Grants. In addition, nearly 96 precent of students that received SEOGs had EFCs of under $5,000 and 48 percent had EFCs of under $1,000. However, some institutions awarded a small portion of their funds in a way that was not consistent with federal regulations. In addition, because of the method of fund distribution to institutions, the amount a student may receive may depend largely on which institution he or she attends. Appendixes contain tables and a list of contributors to the report. Included are three tables and two figures. (JB)