The Chronicle of Higher Education
November 15, 2011
Overpayments on Pell Grants Have Dropped by Millions of Dollars, White House Says
By Kelly Field
Changes in the Free Application for Federal Student Aid that let applicants import information directly from their federal income-tax returns have reduced Pell Grant overpayments by $300-million since 2010, the White House announced on Tuesday.
The news was part of a broader announcementhttp://www.whitehouse.gov/the-press-office/2011/11/15/we-can-t-wait-agencies-cut-nearly-18-billion-improper-payments-announce- by the Obama administration that it had cut improper payments by more than $20-billion, largely in the Medicare and Medicaid programs. A statement from the White House attributed the improvements to "more robust audits," new technologies, and better partnerships with states.
Over the last two years, the government wide payment-error rate has fallen from 5.4 percent to 4.7 percent, according to the statement. The administration is on pace to prevent $50-billion in improper payments by 2012, it said.
Allowing students to import tax information into the student-aid form, known as the Fafsa, can reduce the transcription errors that occur when parents and students copy the information by hand. It also eases the process for first-generation students and others unfamiliar with applying for student aid.
Tuesday's announcement came less than a month after the Education Department sent a letter to collegeshttp://chronicle.com/article/Education-Department-Calls-on/129482/ urging them to help protect the federal student-aid programs from fraud. The department is expected to announce steps that it will take to crack down on "fraud rings" soon.
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