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Many Proprietary Schools Do Not Comply With Department of Education's Pell Grant Program Requirements

HRD-84-17 Published: Aug 20, 1984. Publicly Released: Sep 11, 1984.
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Highlights

In response to a congressional request, GAO assessed the administration of the Pell Grant Program by proprietary schools.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Education In view of the significantly higher dropout rate for students admitted on the basis of the ability-to-benefit criterion, the Secretary of Education should explore the feasibility of developing criteria that would provide schools with a better indication that such students have a reasonable likelihood to complete training. In developing criteria, the Secretary might consider, among other things, the characteristics of successful students enrolled on the basis of ability to benefit, where determinable. If suitable criteria cannot be developed, the Secretary should seek a legislative change to limit admission to students with a high school diploma or General Education Development Certificate and provide that exceptions to this requirement be justified in writing and approved by Education.
Closed – Implemented
Proposed legislation for fiscal year 1988 would require students to have, at a minimum, a General Education Development Certificate.
Department of Education The Secretary of Education should request that the Inspector General (IG): (1) gather information on why regional offices reject the audit work and reports of independent public accountants; and (2) use the analysis of this information as a basis for assessing and, when necessary, increasing the quality and reliability of public accountant audit work. The overall result of this effort would be the development of better information for Education to use in monitoring compliance. Such information, together with Education's program reviews and IG audits, should allow Education to better ensure that problems, such as those noted regarding recruiting practices, adherence to academic progress standards, and administering federal funds, are identified and remedial or other enforcement action is taken where appropriate.
Closed – Implemented
Education's IG revised its manual to improve the reporting system for audits by independent public accountants (IPA). In addition, IG developed codes to analyze the quality of these audits at its headquarters and regional offices.

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Topics

Education program evaluationEducational grantsFederal grantsGrant administrationGrant monitoringNoncomplianceProgram abusesProgram managementProprietary schoolsStudents