Quality in Student Financial Aid Programs -- Copyright -- PREFACE -- Contents -- SUMMARY OF MAJOR CONCLUSIONS AND RECOMMENDATIONS -- ''ERROR" IN STUDENT FINANCIAL AID PROGRAMS -- Types of Error -- Student Error -- Institutional Error -- Failure to Estimate Error Leading to Nonawards -- CURRENT QUALITY CONTROL PROCEDURES -- Edits and Verification of Applicant Data -- Audits and Program Reviews -- THE APPLICANT'S VIEW -- Early Awareness -- The Application Process -- CONCERNS OF POSTSECONDARY INSTITUTIONS -- A VISION FOR A TOTAL QUALITY APPROACH -- A NEW STRATEGY FOR THE DEPARTMENT OF EDUCATION -- Support of the IQC Project -- FURTHER INITIATIVES FOR IMPROVEMENT IN THE SYSTEM -- Toward a New Applicant Processing System -- Centralized Verification -- Organizing Information About the System -- Top Management Leadership -- PART I BACKGROUND -- 1 Introduction -- THE FEDERAL STUDENT FINANCIAL AID SYSTEM -- PURPOSE AND SCOPE OF STUDY -- ORGANIZATION OF THE REPORT -- 2 Continuous Improvement: The New Quality Management Philosophy -- IMPROVING QUALITY -- IDENTIFYING CUSTOMER NEEDS -- EMPHASIZING SYSTEMS THINKING -- MAKING DATA-BASED DECISIONS -- ACCEPTING CHANGE -- WORKING TOGETHER -- UNDERSTANDING VARIATION -- UNDERSTANDING THE ORGANIZATION'S AIMS AND PURPOSES -- FOSTERING TOP MANAGEMENT LEADERSHIP -- 3 Overview of Student Financial Aid Programs -- TYPES AND SOURCES OF STUDENT AID -- Institutional Programs -- State Aid Programs -- Federal Title IV Programs -- Federal Pell Grant Program -- Federal Campus-Based Programs -- Federal Work-Study Programs -- Federal Supplemental Educational Opportunity Grants -- Federal Perkins Loans -- Federal Family Education Loans -- Stafford Loans -- Supplemental Loans for Students -- Parent Loans for Undergraduate Students -- Brief Background on the Programs -- FEDERAL STUDENT FINANCIAL AID RECIPIENTS -- ELIGIBILITY.

THE AID FORMULA -- THE AWARD PROCESS -- PART II "QUALITY" IN THE STUDENT FINANCIAL AID PROGRAMS -- 4 Current Quality Control Procedures -- ERROR DEFINED -- THE QUALITY CONTROL PROCESS -- PROCESSING ACTIVITIES -- Data Entry -- Data Editing -- Verification -- Selection Methodology -- A Further Role of the Financial Aid Administrator -- AUDITS AND PROGRAM REVIEWS -- Audits -- Audit Results -- Risk-Based and Internally Based Audits -- Program Reviews -- Frequency of Reviews and Selection Criteria -- The Visit -- Outcomes -- Data and the Targeting of Reviews -- OIG Activities -- The Panel's Comments and Recommendations on Audits and Reviews -- 5 Alternative Perspectives on Quality in Student Financial Aid Programs -- SURVEYS OF ERROR -- Student Error -- Institutional Error -- The Most Recent Study of Error-The IQCMP -- Estimated Error -- Components of Measured Errors -- Errors in the Estimation of Error -- The IQCMP Sample Design -- Other Troublesome Issues -- Failure to Estimate Error Leading to Nonaward -- Rethinking the Use of Surveys of Error -- THE APPLICANT'S VIEW -- Nonapplicants for Financial Aid -- Applying for Federal Student Financial Aid -- The 1992-93 AFSA -- The 1992-93 Student Aid Report -- Electronic Version of the 1992-93 AFSA -- Recommendations on Financial Aid Forms -- POSTSECONDARY INSTITUTIONS -- Administrative Cost and Regulatory Requirements -- Federal and Local Costs -- State and School Program Coordination -- Extensive and Ever-Changing Regulations and Policy -- Burden and Error -- 6 Financial Aid Data Systems -- THE MANAGEMENT INFORMATION SYSTEM -- STUDENT LOAN DATA -- PROBLEMS WITH THE DATA SYSTEM -- A PROPOSED SOLUTION -- PART III TOWARD AN IMPROVED DELIVERY SYSTEM -- 7 Quality Control in Other Monetary Distribution Systems -- FEDERAL NEED-BASED BENEFIT PROGRAMS -- Quality Control in Family Assistance Programs -- Eligibility.

Verification -- The Quality Control Systems -- History -- Sampling and Review -- Federal Re-Review -- Error Rates and Sanctions -- Performance Over Time and System Reform -- Alternative Incentive Systems -- PRIVATE SECTOR MONETARY DISTRIBUTION SYSTEMS -- LESSONS FOR STUDENT FINANCIAL AID PROGRAMS -- 8 A New Strategy for the Department of Education -- THE INSTITUTIONAL QUALITY CONTROL PROJECT -- Objectives of IQC -- Incentives and Disincentives -- Prior Studies of the IQC Project -- Support of the IQC Project -- Training Sessions -- Quality Control Software -- Recognition and Awards -- Newsletter -- Meetings -- Technical Assistance -- Types of Errors Noted in the IQC Project -- SUMMARY OF THE PANEL'S REVIEW OF THE IQC PROJECT -- 9 Further Initiatives for Improvement in the System -- REAUTHORIZATION OF THE HIGHER EDUCATION ACT -- TOWARD A NEW APPLICANT PROCESSING SYSTEM -- A ''New" Approach -- Reducing "Student Error" -- Reducing "Institutional Error" -- Centralized Verification -- STUDENT LOANS -- TOP MANAGEMENT LEADERSHIP -- REFERENCES AND BIBLIOGRAPHY -- APPENDIXES -- Appendix A A Review of the Methodology Used in the Integrated Quality Control Measurement Project -- Error -- Sampling -- Marginal Analysis -- Error Profile Analysis -- Summary -- References -- Appendix B The Taxpayer as Customer -- Appendix C Applying for Federal Student Financial Aid for 1992-93 -- The 1992-93 AFSA: Paper Version -- The 1992-93 Student Aid Report -- The 1992-93 AFSA: Electronic Version -- References -- Appendix D Laboratory Methods and Document Redesign -- Background -- IRS Schedule C Study -- Survey of Occupational Illnesses and Injuries -- Summary -- References -- Appendix E The IRS Experience with Cognitive Labs and Forms Design -- Use of the Lab -- Problem Specification -- Communication -- Resources -- General Observations on Use of the Lab.

Implementation Issues -- Appendix F Alternative Approaches to Audit and Program Review for Student Financial Aid Programs -- Program Reviews -- Independent Audits -- Approach One-Audit Guide -- Approach Two-A-128 -- Approach Three-A-133 -- Attestation Versus Compliance Objectives -- Illustration of a risk-based Approach -- Alternatives to Current Approaches to Auditing Compliance -- A Risk-Based Approach to the Audit Guide, A-128, and A-133 Audits -- A Certification Model -- A Centralized Risk-Based Approach -- Conclusions and Recommendations -- References -- Appendix G Biographical Sketches of Panel Members and Staff.