Abstract 3
                Initiatives Conducted in Response
                    to Congressional Requests
               (April 1, 1996   September 30, 1996)



Review of the Management Systems and Structure of the U.S. Department of Education, 
Office of Postsecondary Education, Office of Student Financial Assistance Programs
             Control No. S03-60001      June 10, 1996

Our review of the management systems and structure of OPE's Office of Student Financial Assistance Programs
(SFAP) was performed at the request of the House Subcommittee on Oversight and Investigations, Committee on
Economic and Educational Opportunities.  Our review focused on management's use of a dedicated special task force
separate from OPE management's normal supervisory channels to start up the Federal Direct Loan program. The
report contains our observations about the efficiency, consistency and effectiveness of this management practice, and
contains four recommendations.

OPE should:
  implement its plans to select SFAP leadership.  The leader should be appointed by the Secretary, be a non-political appointee, and possess a combination of requisite skills;
  conduct a comprehensive review of OPE and SFAP human resources, followed by a series of steps to address
   identified organizational, personnel, management and training needs; and
  establish a reengineering process directed at achieving specific goals, including creating an OPE organizational
   de-sign and systems that afford the most efficient, effective and economical operations and performance
   measurement.

We also recommended that the Secretary, Deputy Secretary, Under Secretary, Chief Financial Officer and the OPE
leadership team develop and articulate a strategic plan that includes a unified management statement of vision and
operating values for OPE and detailed interim steps and performance measures.  Our recommendations were
developed based on the assumption that reintegration of SFAP and the Direct Loan program would occur before
October 1, 1996.


                                           


     Gatekeeping in the Student Financial Assistance Programs
                           June 6, 1996

The Inspector General testified before the House Subcommittee on Human Resources and Intergovernmental Relations,
Committee on Government Reform and Oversight, about continuing problems with the gatekeeping process for
ensuring that only high-quality schools participate in the Federal student financial assistance programs under Title IV
of the Higher Education Act.  Focusing on short-term, non-degree-granting, vocational schools, the Inspector General
told the Sub-committee that OIG audits found that very few accrediting agencies had adopted quantifiable and objective
performance standards for such schools, and that no accrediting agencies used performance standards as enforcement
mechanisms to eliminate substandard schools from accreditation and therefore Title IV participation.  Rather, the
performance standards that exist are treated as mere goals by the accrediting agencies and by the Department of
Education.   The result is that students and taxpayers are not always getting their money's worth for the $8.8 billion
spent annual on postsecondary vocational training.
The Inspector General advocated that, with respect to the non-degree-granting, vocational trade schools sector,
Congress legislate consistent, measurable, objective standards which schools would have to meet in order to be eligible
to participate in the student financial assistance programs, particularly in the areas of job placement and student
achievement.