Distance education--that is, offering courses by Internet, video, or other forms outside the classroom--has changed considerably in recent years and is a growing force in postsecondary education. More than a decade ago, concerns about fraud and abuse by some correspondence schools led to federal restrictions on, among other things, the percentage of courses a school could provide by distance education and still qualify for federal student aid. Given the recent changes in distance education, GAO (United States General Accounting Office) was asked to review the extent to which the restrictions affect schools' ability to offer federal student aid and the Department of Education's assessment of the continued appropriateness of the restrictions. Additionally, GAO was asked to look at the extent to which accrediting agencies evaluate distance education programs, including their approach for assessing student outcomes. GAO recommends that Education provide data on the cost of waiving restrictions on distance education and develop guidelines with accrediting agencies and schools on assessing distance education quality. Appended are: Scope and Methodology; Comments from the Department of Education; and GAO Contacts and Staff Acknowledgments. (Author/MA)