The types and ranges of errors made on applications to the Basic Educational Opportunity Grant (BEOG) program were studied, along with procedures used in recovering overpayments. The objective was to assess the scope and nature of misreporting and misuse of the BEOG program. A 1975-1976 study reviewed cases referred to the U.S. Office of Education by educational institutions. Special attention was given to the reasons for institution referrals, the prevalence of confirmed errors on Student Eligibility Reports (SER), applicant characteristics associated with SER errors, and characteristics of schools sending referrals. Another study investigated a random sample of about 6,000 applicants who were selected based on 1976-1977 applications that were believed to entail errors on Student Eligibility Reports. The "high risk" applicants were selected according to specific criteria, including inconsistencies in taxes paid and reported income on the application; household size was not equal to reported tax exemptions, and SER corrections resulted in Student Eligibility Index changes greater than 250 points. Also assessed was a formal method of identifying overpayment cases and collecting BEOG funds disbursed to ineligible applicants. Statistical findings of the studies are included. (SW)