We estimate that in the 1999-2000 school year, about 1.5 million of the 19 million students involved in postsecondary education took at least one electronically transmitted distance education course. As the largest provider of student financial aid to postsecondary students (an estimated $52 billion in fiscal year 2002), the federal government has a substantial interest in the quality of distance education. Characteristics of Distance Education Students and Institutions That Offer Distance Education

Our analysis of the NPSAS showed that the estimated 1.5 millionpostsecondary students who have taken distance education courses have different demographic characteristics when compared with the characteristics of postsecondary students who did not enroll in distance education. Distance education students are more likely to be married. Distance education students are more likely to be part-time students. Growth of Distance Education Affects Federal Student Aid Policies on Several Fronts

Federal student aid is an important consideration for many students who take distance education courses, although not to the same degree as students in more traditional classroom settings. Without some relief, the students that attend these institutions may become ineligible for student aid from the federal government in the future. Minority Serving Institutions Tend To Use Distance Education Less Frequently Than Other Schools

While our work examining the use of distance education at Minority Serving Institutions (MSIs) is not yet completed, the preliminary data indicate that MSIs—and more specifically, minority students at MSIs— make less use of distance education than students at other schools. We plan to review a number of accreditation efforts to determine the way in which accrediting agencies review distance education programs. Congress and the Administration need to ensure that changes to the HEA and regulations do not increase the chances of fraud, waste, or abuse to the student financial aid programs.
What GAO Found

Increasingly, the issues of distance education and federal student aid intersect. About one in every 13 postsecondary students enrolls in at least one distance education course, and the Department of Education estimates that the number of students involved in distance education has tripled in just 4 years. As the largest provider of financial aid to postsecondary students, the federal government has a considerable interest in distance education. Overall, 1.5 million out of 19 million postsecondary students took at least one distance education course in the 1999-2000 school year. The distance education students differ from other postsecondary students in a number of respects. Compared to other students, they tend to be older and are more likely to be employed full-time while attending school part-time. They also have higher incomes and are more likely to be married. Many students enrolled in distance education courses participate in federal student aid programs. As distance education continues to grow, several major aspects of federal laws, rules, and regulations may need to be reexamined. Certain rules may need to be modified if a small, but growing, number of schools are to remain eligible for student aid. Students attending these schools may become ineligible for student aid because their distance education programs are growing and may exceed statutory and regulatory limits on the amount of distance education an institution can offer. In general, students at minority serving institutions use distance education less extensively than students at other schools. Accrediting agencies play an important role in reviewing distance education programs. They, and Education, are "gatekeepers" with respect to ensuring quality at postsecondary institutions--including those that offer distance education programs.