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ERIC Number: ED506753
Record Type: Non-Journal
Publication Date: 2009-Oct-14
Pages: 9
Abstractor: ERIC
Reference Count: 0
Proprietary Schools: Improved Department of Education Oversight Needed to Help Ensure Only Eligible Students Receive Federal Student Aid. Testimony before the Subcommittee on Higher Education, Lifelong Learning and Competitiveness, Committee on Education and Labor, House of Representatives. GAO-10-127T
Scott, George A.
US Government Accountability Office
Presented herein is a statement of George A. Scott, Director Education, Workforce, and Income Security. The author discusses the extent to which the Department of Education's policies and procedures for monitoring eligibility requirements for federal aid at proprietary schools protect students and the investment of Title IV funds. This testimony is based on a Government Accountability Office (GAO) report that he and his team released on September 21, 2009, titled "Proprietary Schools: Stronger Department of Education Oversight Needed to Help Ensure Only Eligible Students Receive Federal Student Aid." In separate investigations at proprietary schools, the author and his team, along with other federal and state investigative agencies, found test administrators or school officials violated rules intended to ensure prospective students without high school diplomas pass required "ability to benefit" (ATB) tests before obtaining access to Title IV financial aid. Their work has identified potential fraud at a few proprietary schools and significant vulnerabilities in Education's oversight of a key aspect of the federal student financial aid program. In their recently issued report, they recommended that Education strengthen its monitoring and oversight of federal aid eligibility requirements to (1) improve its monitoring of ATB tests and target schools that fail to follow testing regulations for further review; (2) revise regulations to strengthen controls over ATB tests; and (3) provide information and guidance on valid high school diplomas for use in gaining access to federal student aid. After reviewing the draft report, Education provided comments and noted the steps it would take to address GAO's recommendations. A complete discussion of their recommendations, Education's comments, and their evaluation are provided in the recently issued report. (Contains 6 footnotes and 1 figure.)
US Government Accountability Office. 441 G Street NW, Washington, DC 20548. Tel: 202-512-6000; Web site:
Publication Type: Reports - Descriptive; Speeches/Meeting Papers
Education Level: High Schools
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: US Government Accountability Office