Schools’ Use of NSLDS’ On-Line and Batch Processing Functions Is Limited

Our survey results indicate that a significant proportion—42 percent—of the schools participating in federal student financial aid programs were not using NSLDS’ on-line and batch processing functions, which first became available in November 1994. In addition, of the schools that were using these functions, most were not routinely using them for many of the tasks they were capable of performing. 2.) As shown in figure 3, more than half of the schools rarely or never performed 7 of the 10 tasks using NSLDS. 4.) However, some schools did experience problems with some aspects of the system. 5.) The Department depends on guaranty agencies, loan servicers, and other entities to provide many of these data and has initiated efforts to address these problems. About 80 percent of schools that use the system responded that they requested assistance or information from the NSLDS Customer Service Center. Schools Had Mixed Views About Whether NSLDS Improved Student Financial Aid Administration

Schools using NSLDS’ on-line and batch processing functions had mixed views about whether these capabilities led to improvements in their ability to administer federal student financial aid programs. However, most had no plans to obtain access to NSLDS, had plans to obtain access but did not know when, or were unsure whether they would ever obtain access. While the schools that did not use NSLDS’ on-line and batch processing functions—either because they chose not to (19 percent) or did not have the ability to (23 percent)—had a variety of reasons for not using or having NSLDS, these reasons generally fell into one of three categories: use of alternative methods, such as the Clearinghouse, for obtaining and processing SSCR information; limitations in resources, personnel, or skills, such as lack of training; and lack of confidence in data reliability. 8.) The Department Has Taken Steps to Promote Greater School Use of NSLDS

The Department has efforts under way to increase schools’ use of NSLDS. While a small percentage of schools have not complied with requirements for SSCR processing and on-line access, the Department recognizes that to encourage schools to use NSLDS beyond these requirements, it must promote the system and ensure the accuracy of the system’s data. Therefore, the Department plans to provide additional NSLDS training to users at sites throughout the country and review and correct any inaccurate data in NSLDS. The Department gave the major data providers detailed technical instructions that specify their responsibilities and the data they are required to provide. To further demonstrate its commitment to improving the reliability of data on its financial aid programs, the Department has addressed the issue of data integrity in its long-range strategic and annual performance plans prepared in response to the Government Performance and Results Act of 1993. National Student Loan Data System

The National Student Loan Data System performs prescreening of student financial aid program applications, performs student status confirmation reporting, and tracks borrowers. 1. The Department said all schools use NSLDS, and that we were incorrect in reporting that almost half of the schools do not use NSLDS at all. 2. 3. 4.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed schools' use of the National Student Loan Data System (NSLDS), focusing on: (1) the extent to and purposes for which schools are using NSLDS; (2) problems these schools are having and the benefits they are getting from using the system; (3) why some schools are not using NSLDS; and (4) the extent to which the Department of Education is taking or plans to take steps to ensure that schools are fully using NSLDS.

What GAO Found

GAO noted that: (1) postsecondary schools participating in federal student financial aid programs are making limited use of NSLDS' online and batch processing functions; (2) GAO estimated that almost half of the schools are not using these system capabilities at all--3 years after they first became available; (3) those that are using these functions are not routinely using them for many of the tasks they are capable of performing; (4) the one use made by the majority of schools is to provide and update student financial data on the student status confirmation report, which the Department now requires all schools to perform; (5) GAO estimated that over half of the schools rarely or never performed 7 of the 10 tasks that GAO identified for its survey using NSLDS' online and batch processing functions; (6) in general, schools' experiences using NSLDS have been relatively problem free; however, some schools did experience problems with some aspects of the system; (7) schools using NSLDS' online and batch processing functions had mixed views on whether they led to improvements in their program administration; (8) schools that did not use NSLDS' online and batch processing functions cited a variety of reasons for not doing so; (9) the most frequent reasons cited by these schools included relying on alternative methods to obtain or submit data needed to administer student aid programs; (10) of the schools that did not use the systems' online and batch processing functions, many did not have plans to obtain access to NSLDS, had plans to obtain access to the system but did not know when, or were unsure when they would obtain access to the system in the future; (11) in an effort to increase schools' use of NSLDS, the Department has provided training assistance to schools and has worked to ensure the accuracy of the system's data; (12) the Department recently expanded its NSLDS customer service center and will offer NSLDS training to users at its 11 regional training centers; (13) in addition, to demonstrate its commitment to improving the reliability of data on its postsecondary education programs, the Department has addressed the issue of data integrity in its long-range strategic and annual performance plans prepared in response to the Government Performance and Results Act of 1993; (14) as part of this commitment, the Department has initiated efforts to identify and correct inaccurate data in NSLDS, and to strengthen its working relationships with other data providers, such as guaranty agencies.