ERIC Number: ED429502
Record Type: Non-Journal
Publication Date: 1999-Feb-17
Reference Count: N/A
Direct Student Loans: Overpayments during the Department of Education's Conversion to a New Payment System.
Joyner, Carlotta C.
This report addresses concerns that the Department of Education may have erroneously made overpayments of as much as $400 million to schools participating in the William D. Ford Federal Direct Loan Program (FDLP) during the Department's conversion to a new computerized payment system. The investigation found that because the transition to the new system took substantially longer than anticipated, schools were authorized to draw down within existing guidelines as many funds as they expected to disburse during the transition period. The $400 million was the approximate amount that FDLP schools drew down to meet their needs during this transition period. However, overpayments of $6 to $10 million were made when a payment list was erroneously processed twice. The Department is currently in the process of recovering these overpayments. (DB)
Descriptors: Accountability, Compliance (Legal), Federal Aid, Federal Programs, Higher Education, Student Loan Programs
U.S. General Accounting Office, P.O. Box 37050, Washington, DC 20013; Tel: 202-512-6000; Fax: 202-512-6061; Web site: http://www.gao.gov (first copy free, additional copies $2).
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: General Accounting Office, Washington, DC. Health, Education, and Human Services Div.
Identifiers - Laws, Policies, & Programs: Federal Direct Student Loan Program