Federal Student Loans: Audits and Reviews of the Federal Family Education Loan and Federal Direct Loan Programs

This letter formally transmits the briefing slides in response to section 1119 of Pub. L. No. 110-315, the Higher Education Opportunity Act. This act mandated GAO study the financial and compliance audits and reviews required or conducted for the Federal Family Education Loan and Federal Direct Loan Programs. On August 6 and 7, 2009, we briefed the staff of congressional committees on the types of audits, reviews, agreed-upon procedures, and reconciliations that are required or conducted for these programs. At congressional request, we have incorporated additional information on the agreed-upon procedures engagements required by the Ensuring Continued Access to Student Loans Act and the reconciliations performed by the Department of Education's Office of Federal Student Aid. In a forthcoming report, we will provide an assessment of whether these audits and reviews as designed provide comparable coverage of the two loan programs. That report will also discuss how the Department of Education ensures that these audits and reviews comply with statutory and regulatory requirements and how the Department uses them to oversee these loan programs.