Direct Student Loans: Overpayments during the Department of Education's Conversion to a New Payment System

摘要

This letter responds to your request that we investigate reports of erroneous Department of Education payments to schools participating in the William D. Ford Federal Direct Loan Program (FDLP). These payments were reported to have been made during the Department's conversion to a new computerized payment system. Specifically, you asked us to review the transition from the old payment system to the new payment system and to determine whether the Department erroneously disbursed as much as $400 million to schools participating in the direct loan program during the conversion. The Department provides funds to students to help finance their postsecondary education. Schools draw down these funds from the government to use as needed for students who have loans under FDLP.