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Testimony:

Before the Subcommittee on Select Education, Committee on Education and 
the Workforce, House of Representatives:

United States General Accounting Office:

GAO:

For Release on Delivery Expected at 10:00 a.m. EST:

Monday, October 6, 2003:

DISTANCE EDUCATION:

Challenges for Minority Serving Institutions and Implications for 
Federal Education Policy:

Statement of Cornelia M. Ashby Director, Education, Workforce, and 
Income Security:

GAO-04-78T:

GAO Highlights:

Highlights of GAO-04-78T, a testimony before the Subcommittee on 
Select Education, Committee on Education and the Workforce, House of 
Representatives

Why GAO Did This Study:

The Higher Education Act of 1965 gives special recognition to some 
postsecondary schools—called Minority Serving Institutions—that serve 
a high percentage of minority students. These and other schools face 
stiff challenges in keeping pace with technology. One rapidly growing 
area, distance education, has commanded particular attention and an 
estimated 1.5 million students have enrolled in at least one distance 
education course. 

In light of this, GAO was asked to provide information on: (1) the use 
of distance education by Minority Serving Institutions; (2) the 
challenges Minority Serving Institutions face in obtaining and using 
technology; (3) GAO’s preliminary finding on the role that accrediting 
agencies play in ensuring the quality of distance education; and (4) 
GAO’s preliminary findings on whether statutory requirements limit 
federal aid to students involved in distance education.

GAO is currently finalizing the results of its work on (1) the role of 
accrediting agencies in reviewing distance education programs and (2) 
federal student financial aid issues related to distance education.  

What GAO Found:

There are some variations in the use of distance education at Minority 
Serving Institutions when compared to other schools. While it is 
difficult to generalize, Minority Serving Institutions offered at 
least one distance education course at the same rate as other schools. 
When Minority Serving Institutions offered distance education, they 
did so to improve access for students who live away from campus and 
provide convenience to older, working, or married students. Some 
Minority Serving Institutions do not offer distance education because 
classroom education best meets the needs of their students. 
Additionally, schools view the overall use of technology as a critical 
tool in educating their students and they generally indicated that 
offering more distance education was a lower priority than using 
technology to educate their classroom students. The two primary 
challenges in meeting technology goals cited by these institutions 
were limitations in funding and inadequate staffing to maintain and 
operate information technology. 

Accrediting agencies have taken steps to ensure the quality of 
distance education programs, such as developing supplemental 
guidelines for reviewing these programs. However, GAO found (1) no 
agreed upon set of standards for holding institutions accountable for 
student outcomes and (2) differences in how agencies review distance 
education programs. Finally, several statutory rules limit the amount 
of federal aid for distance education students. GAO estimates that at 
least 14 schools are not eligible or could lose their eligibility for 
federal student financial aid if their distance education programs 
continue to expand. While the number of schools potentially affected 
is relatively small in comparison to the more than 6,000 postsecondary 
institutions in the country, this is an important issue for the nearly 
210,000 students who attend these schools. Several factors must be 
considered before deciding whether to eliminate or modify these rules. 
They include the cost of implementation, the extent to which the 
changes improve access, and the impact that changes would have on 
Education’s ability to prevent schools from fraudulent or abusive 
practices. 

www.gao.gov/cgi-bin/getrpt?GAO-04-78T.

To view the full product, including the scope and methodology, click 
on the link above. For more information, contact Cornelia M. Ashby at 
(202) 512-8403, ashbyc@gao.gov.

[End of section]

Mr. Chairman and members of the subcommittee:

I am pleased to be here today to discuss issues related to distance 
education[Footnote 1] and its implications for federal programs that 
support postsecondary schools serving a high percentage of minority 
students and for the federal student financial aid programs that 
exceeded $60 billion in 2003. For over 100 years, the Congress has 
recognized that some postsecondary institutions--including the 
University of Texas Pan-American--have unique roles to play in 
educating minority students. These schools serve a high proportion of 
minority students and have special designation under federal law as 
Minority Serving Institutions.[Footnote 2] Like other postsecondary 
institutions, over the last decade, Minority Serving Institutions have 
faced the challenge of trying to keep pace with the changing face of 
technology in education. One rapidly growing area--distance education-
-has commanded particular attention on campuses around the world. In 
the 1999-2000 school year, an estimated 1.5 million postsecondary 
students, or about 1 in 13 students, enrolled in at least one distance 
education course, and the Department of Education (Education) estimates 
that the number of students involved in distance education has tripled 
in just 4 years. The Higher Education Act of 1965, as amended, will be 
reauthorized within the coming year. Among other purposes, the act 
provides federal support for Minority Serving Institutions through 
Titles III and V, including support for technological improvements at 
these schools. Title IV of the act authorizes the federal government to 
provide grants, loans, and work-study wages for millions of 
postsecondary students each year; however, there are limits on some 
financial aid to distance education students.

Given the changes in how education is being offered, you asked us to 
testify on the following issues: (1) the use of distance education by 
Minority Serving Institutions compared to non-Minority Serving 
Institutions; (2) the challenges Minority Serving Institutions face in 
obtaining and using technology and how Education monitors technological 
progress at these schools; (3) our preliminary findings on the role 
that accrediting agencies play in ensuring the quality of distance 
education programs; and (4) our preliminary findings on whether 
statutory requirements limit federal student aid for students involved 
in distance education. In addition to this statement, we are releasing 
a report today on distance education at Minority Serving 
Institutions.[Footnote 3] This report discusses many of these issues in 
more detail. We will issue a second report in December 2003 on 
accrediting agencies and statutory and regulatory issues related to 
distance education.

Our statement is based on responses to distinct surveys developed and 
sent to Historically Black Colleges and Universities, Hispanic Serving 
Institutions, and Tribal Colleges; data on distance education produced 
by Education;[Footnote 4] analysis of Education databases;[Footnote 5] 
visits to seven accrediting agencies responsible for reviewing two-
thirds of all distance education programs; and interviews with 
Education officials, accreditors, and officials of schools with 
substantial distance education programs. We performed our work between 
October 2002 and September 2003 in accordance with generally accepted 
government auditing standards.

In summary:

* There are some variations in the use of distance education at 
Minority Serving Institutions and other schools. While it is difficult 
to generalize across Minority Serving Institutions, Minority Serving 
Institutions tend to offer at least one distance education course at 
the same rate as other schools, but they differ in how many courses are 
offered and which students take the courses. Like other schools, larger 
Minority Serving Institutions tend to offer more distance education 
than smaller schools and public schools tend to offer more distance 
education than private schools. However, Historically Black Colleges 
and Universities and Tribal Colleges generally offered fewer classes, 
and a smaller percentage of minority students at Historically Black 
Colleges and Universities take such courses. When Minority Serving 
Institutions offered distance education, they did so to (1) improve 
access to courses for some students who live away from campus and (2) 
provide convenience to older, working, or married students. By design, 
some Minority Serving Institutions indicated that they do not offer 
distance education because they prefer classroom education to best meet 
the needs of their students.

* Minority Serving Institutions, like other schools, face stiff 
challenges in keeping pace with the rapid changes and opportunities 
presented by information technology. Minority Serving Institutions view 
the use of technology as a critical tool in educating their students 
and they generally indicated that offering more distance education was 
a lower priority than using technology to educate their classroom 
students. For example, all three types of institutions reported that 
their highest priority was providing more training for faculty in the 
use of information technology as a teaching method. Other priorities 
included improving network infrastructure, increasing the use of 
technology in classrooms, and guaranteeing that all students have 
access to a computer. More than four out of five Minority Serving 
Institutions indicated that they expect to have difficulties in meeting 
their goals related to technology. The two primary challenges cited by 
Minority Serving Institutions were (1) limitations in funding and (2) 
inadequate staffing to maintain and operate information technology. 
With respect to how Education monitors technological improvements at 
Minority Serving Institutions, we found that Education could develop 
better data to improve their ability to track technological 
improvements at Minority Serving Institutions. Specifically, we found 
that progress could be made by collecting more complete data on 
technology improvements across the three major types of Minority 
Serving Institutions and by developing baseline data to measure 
progress on the technological capacity at Minority Serving 
Institutions.

* Based on our ongoing work, we have preliminary findings on the role 
that accrediting agencies play in ensuring the quality of distance 
education programs and information on certain statutory requirements 
that limit federal financial aid to distance education students. 
Uncertainty about the quality of distance education programs has turned 
attention toward what accrediting agencies do to ensure the quality of 
distance education programs. Our preliminary analysis shows that while 
accrediting agencies have taken steps to ensure the quality of distance 
education programs, such as developing supplemental guidelines for 
reviewing distance education programs, there are two areas that 
potentially could merit further attention. First, there is no agreed 
upon set of standards that accrediting agencies use in holding 
postsecondary institutions accountable for student outcomes. Second, 
there are differences in their procedures for reviewing distance 
education programs--for example, some agencies require institutions to 
demonstrate comparability between distance education programs and 
campus-based programs, while others do not.

* Finally, also based on our preliminary work, we found that several 
statutory rules--designed to prevent fraud and abuse in distance 
education--limit federal aid for distance education students. We 
estimate that at least 14 schools are not eligible or could lose their 
eligibility for participation in the federal student financial aid 
programs if their distance education programs continue to expand. While 
the number of schools potentially affected is relatively small in 
comparison to the more than 6,000 postsecondary institutions in the 
country, this is an important issue for the nearly 210,000 students who 
attend these schools. Deciding whether to eliminate or modify these 
rules involves consideration of several other factors, including the 
cost of implementation, the extent to which the changes improve access 
to postsecondary schools, and the impact that changes would have on 
Education's ability to prevent institutions from fraudulent or abusive 
practices.

We are currently finalizing the results of our work on (1) the role of 
accrediting agencies in reviewing distance education programs and (2) 
federal student financial aid issues related to distance education. A 
report on these issues will be available in December 2003.

Background:

Minority Serving Institutions vary in size and scope but generally 
serve a high percentage of minority students, many of whom are 
financially disadvantaged. In the 2000-01 school year, 465 schools, or 
about 7 percent of postsecondary institutions in the United 
States,[Footnote 6] served about 35 percent of all Black, American 
Indian, and Hispanic students. Table 1 briefly compares the three main 
types of Minority Serving Institutions in terms of their number, type, 
and size.

Table 1: Selected Characteristics of Minority Serving Institutions:

Characteristics: Number of schools[A]; Type of Institution: 
Historically Black Colleges and Universities: 102; Type of Institution: 
Hispanic Serving Institutions: 334; Type of Institution: Tribal 
Colleges: 29.

Characteristics: Percent of each type of institution; Type of 
Institution: Historically Black Colleges and Universities: [Empty]; 
Type of Institution: Hispanic Serving Institutions: [Empty]; Type of 
Institution: Tribal Colleges: [Empty].

Characteristics: Public; Type of Institution: Historically Black 
Colleges and Universities: 50; Type of Institution: Hispanic Serving 
Institutions: 45; Type of Institution: Tribal Colleges: 100.

Characteristics: Private nonprofit; Type of Institution: Historically 
Black Colleges and Universities: 50; Type of Institution: Hispanic 
Serving Institutions: 23; Type of Institution: Tribal Colleges: 0.

Characteristics: Private for-profit; Type of Institution: Historically 
Black Colleges and Universities: 0; Type of Institution: Hispanic 
Serving Institutions: 32; Type of Institution: Tribal Colleges: 0.

Characteristics: Average number of students per institution; Type of 
Institution: Historically Black Colleges and Universities: 2,685; Type 
of Institution: Hispanic Serving Institutions: 5,141; Type of 
Institution: Tribal Colleges: 467.

Characteristics: Number of students served in 2000-01; Type of 
Institution: Historically Black Colleges and Universities: 274,000; 
Type of Institution: Hispanic Serving Institutions: 1.7 million; Type 
of Institution: Tribal Colleges: 13,500.

Source: Department of Education and GAO analysis of IPEDS for the 2000-
01 school year.

[A] This figure represents the number of schools eligible for the 
federal student aid programs in the 2000-01 school year based on our 
analysis of IPEDS.

[End of table]

The Higher Education Act of 1965, as amended, provides specific federal 
support for Minority Serving Institutions through Titles III and V. 
These provisions authorize grants for augmenting the limited resources 
that many Minority Serving Institutions have for funding their academic 
programs. In 2002, grants funded under these two titles provided over 
$300 million for Historically Black Colleges and Universities, Hispanic 
Serving Institutions, and Tribal Colleges to improve their academic 
quality, institutional management, and fiscal stability. Technology is 
one of the many purposes to which these grants can be applied, both 
inside the classroom and, in the form of distance education, outside 
the classroom.

Technology is changing how institutions educate their students, and 
Minority Serving Institutions, like other schools, are grappling with 
how best to adapt. Through such methods as E-mail, chat rooms, and 
direct instructional delivery via the Internet, technology can enhance 
students' ability to learn any time, any place, rather than be bound by 
time or place in the classroom or in the library. For Minority Serving 
Institutions, the importance of technology takes on an additional 
dimension in that available research indicates their students may 
arrive with less prior access to technology, such as computers and the 
Internet, than their counterparts in other schools.[Footnote 7] These 
students may need considerable exposure to technology to be fully 
equipped with job-related skills.

The growth of distance education has added a new dimension to 
evaluating the quality of postsecondary education programs. Federal 
statutes recognize accrediting agencies[Footnote 8] as the gatekeepers 
of postsecondary education quality. To be eligible for the federal 
student aid program, a school must be periodically reviewed and 
accredited by such an agency. Education, in turn, is responsible for 
recognizing an accrediting agency as a reliable authority on quality. 
While the accreditation process applies to both distance education and 
campus-based instruction, many accreditation practices focus on the 
traditional means of providing campus-based education, such as the 
adequacy of classroom facilities or recruiting and admission practices. 
These measures can be more difficult to apply to distance education 
when students are not on campus or may not interact with faculty in 
person. In this new environment, postsecondary education officials are 
increasingly recommending that outcomes--such as course completion 
rates or success in written communication--be incorporated as 
appropriate into assessments of distance education.

The emphasis on student outcomes has occurred against a backdrop of the 
federal government, state governments, and the business community 
asking for additional information on what students are learning for the 
tens of billions of taxpayer dollars that support postsecondary 
institutions each year. While there is general recognition that the 
United States has one of the best postsecondary systems in the world, 
this call for greater accountability has occurred because of low 
completion rates among low-income students (only 6 percent earn a 
bachelors degree or higher), perceptions that the overall 6-year 
institutional graduation rate (about 52 percent) at 4-year schools and 
the completion rate at 2-year schools (about 33 percent) are low, and a 
skills gap in problem solving, communications, and analytical thinking 
between what students are taught and what employers need in the 21st 
Century workplace.

For the most part, students taking distance education courses can 
qualify for financial aid in the same way as students taking 
traditional courses.[Footnote 9] As the largest provider of student 
financial aid to postsecondary students, the federal government has a 
substantial interest in distance education. Under Title IV of the 
Higher Education Act of 1965, as amended, the federal government 
provides grants, loans, and work-study wages for millions of students 
each year. There are limits, however, on the use of federal student aid 
at schools with large distance education offerings. Concerns about the 
quality of some correspondence courses more than a decade ago led the 
Congress, as a way of controlling fraud and abuse in federal student 
aid programs, to impose restrictions on the extent to which schools 
could offer distance education and still qualify to participate in 
federal student aid programs. The rapid growth of distance education 
and emerging delivery modes, such as Internet-based classes, have led 
to questions about whether these restrictions are still needed and how 
the restrictions might affect students' access to federal aid programs. 
Distance education's effect on helping students complete their courses 
of study is still largely unknown. Although there is some anecdotal 
evidence that distance education can help students complete their 
programs or graduate from college, school officials that we spoke to 
did not identify any studies that evaluated the extent to which 
distance education has improved completion or graduation rates.

Distance Education Use Varies between Minority Serving Institutions and 
Other Schools, with Some Minority Serving Institutions Choosing Not to 
Offer Any Distance Education:

There are some variations in the use of distance education at Minority 
Serving Institutions and other schools. While it is difficult to 
generalize across the Minority Serving Institutions, the available data 
indicate that Minority Serving Institutions tend to offer at least one 
distance education course at the same rate as other schools, but they 
differ in how many courses are offered and which students take the 
courses. Overall, the percentage of schools offering at least one 
distance education course in the 2002-03 school year was 56 percent for 
Historically Black Colleges and Universities, 63 percent for Hispanic 
Serving Institutions, and 63 percent for Tribal Colleges, based on data 
from our surveys of Minority Serving Institutions. Similarly, 56 
percent of 2-and 4-year schools across the country offered at least one 
distance education course in the 2000-01 school year, according to a 
separate survey conducted by Education.[Footnote 10] Minority Serving 
Institutions also tended to mirror other schools in that larger schools 
were more likely to offer distance education than smaller schools, and 
public schools were more likely to offer distance education than 
private schools. Tribal Colleges were an exception; all of them were 
small, but the percentage of schools offering distance education 
courses was relatively high compared to other smaller schools. The 
greater use of distance education among Tribal Colleges may reflect 
their need to serve students who often live in remote areas.

In two respects, however, the use of distance education at Minority 
Serving Institutions differed from other schools. First, of those 
institutions offering at least one distance education course, 
Historically Black Colleges and Universities and Tribal Colleges 
generally offered fewer distance education courses--a characteristic 
that may reflect the smaller size of these two types of institutions 
compared to other schools.[Footnote 11] Second, to the extent that data 
are available, minority students at Historically Black Colleges and 
Universities and Hispanic Serving Institutions participate in distance 
education to a somewhat lower degree than other students. For example, 
in the 1999-2000 school year, fewer undergraduates at Historically 
Black Colleges and Universities took distance education courses than 
students at non-Minority Serving Institutions--6 percent v. 8.4 percent 
of undergraduates--a condition that may reflect the fact that these 
schools offer fewer distance education courses. Also, at Hispanic 
Serving Institutions, Hispanic students had lower rates of 
participation in distance education than non-Hispanic students 
attending these schools. These differences were statistically 
significant.

We found that Minority Serving Institutions offered distance education 
courses[Footnote 12] for two main reasons: (1) they improve access to 
courses for some students who live away from campus and (2) they 
provide convenience to older, working, or married students. The 
following examples illustrate these conditions.

* Northwest Indian College, a Tribal College in Bellingham, Washington, 
has over 10 percent of its 600 students involved in distance education. 
It offers distance education by videoconference equipment or 
correspondence. The College offers over 20 distance education courses, 
such as mathematics and English to students at seven remote locations 
in Washington and Idaho. According to College officials, distance 
education technology is essential because it provides access to 
educational opportunities for students who live away from campus. For 
example, some students taking distance education courses live hundreds 
of miles from the College in locations such as the Nez Perce 
Reservation in Idaho and the Makah Reservation in Neah Bay, Washington. 
According to school officials, students involved in distance education 
tend to be older with dependents, and therefore, find it difficult to 
take courses outside of their community. Also, one official noted that 
staying within the tribal community is valued and distance education 
allows members of tribes to stay close to their community and still 
obtain skills or a degree.

* The University of the Incarnate Word is a private nonprofit Hispanic 
Serving Institution with an enrollment of about 6,900 students. The 
school, located in San Antonio, Texas, offers on-line degree and 
certificate programs, including degrees in business, nursing, and 
information technology. About 2,400 students are enrolled in the 
school's distance education program. The school's on-line programs are 
directed at nontraditional students (students who are 24 years old or 
older), many of whom are Hispanic. In general, the ideal candidates for 
the on-line program are older students, working adults, or adult 
learners who have been out of high school for 5 or more years, 
according to the Provost and the Director of Instructional Technology.

Not all schools wanted to offer distance education, however, and we 
found that almost half of Historically Black Colleges and Universities 
and Hispanic Serving Institutions[Footnote 13] did not offer any 
distance education because they preferred to teach their students in 
the classroom rather than through distance education.[Footnote 14] Here 
are examples from 2 schools that prefer teaching their students in the 
classroom rather than by the use of distance education.

* Howard University, an Historically Black University in Washington, 
D.C., with about 10,000 students, has substantial information 
technology; however, it prefers to use the technology in teaching 
undergraduates on campus rather than through developing and offering 
distance education. The University has state-of-the-art hardware and 
software, such as wireless access to the school's network; a digital 
auditorium; and a 24-hour-a-day Technology Center, which support and 
enhance the academic achievement for its students. Despite its 
technological capabilities, the University does not offer distance 
education courses to undergraduates and has no plans to do so. 
According to the Dean of Scholarships and Financial Aid, the University 
prefers teaching undergraduates in the classroom because more self-
discipline is needed when taking distance education courses. Also, many 
undergraduates benefit from the support provided by students and 
faculty in a classroom setting.

* Robert Morris College is a private nonprofit Hispanic Serving 
Institution located in Chicago, Illinois, that offers bachelor degrees 
in business, computer technology, and health sciences. About 25 percent 
of its 6,200 undergraduates are Hispanic. Although the College has one 
computer for every 4 students, it does not offer distance education 
courses and has no plans to do so. School officials believe that 
classroom education best meets the needs of its students because of the 
personal interaction that occurs in a classroom setting.

Among Minority Serving Institutions that do not offer distance 
education, over 50 percent would like to offer distance education in 
the future, but indicated that they have limited resources with which 
to do so. About half of Historically Black Colleges and Universities 
and Hispanic Serving Institutions that do not offer distance education 
indicated that they do not have the necessary technology--including 
students with access to computers at their residences--for distance 
education. A higher percentage of Tribal Colleges (67 percent) cited 
limitations in technology as a reason why they do not offer distance 
education. Technological limitations are twofold for Tribal Colleges. 
The first, and more obvious limitation is a lack of resources to 
purchase and develop needed technologies. The second is that due to the 
remote location of some campuses, needed technological infrastructure 
is not there--that is, schools may be limited to the technology of the 
surrounding communities. All 10 Tribal Colleges that did not offer 
distance education indicated that improvements in technology, such as 
videoconference equipment and network infrastructure with greater 
speed, would be helpful.

Minority Serving Institutions Face Sizable Challenges in Using 
Technology, Including Distance Education, and Education's Efforts to 
Monitor Technology Could Be Improved:

Minority Serving Institutions, like other schools, face stiff 
challenges in keeping pace with the rapid changes and opportunities 
presented by information technology and Education could improve how 
technological progress is monitored. Minority Serving Institutions view 
the use of technology as a critical tool in educating their students. 
With respect to their overall technology goals, Minority Serving 
Institutions viewed using technology in the classroom as a higher 
priority than offering distance education. (See fig. 1.) Other 
priorities included improving network infrastructure and providing more 
training for faculty in the use of information technology as a teaching 
method.

Figure 1: Distance Education Generally Ranks Lower in Relation to Other 
Technology Goals:

[See PDF for image]

[End of figure]

Minority Serving Institutions indicated that they expect to have 
difficulties in meeting their goals related to technology. Eighty-seven 
percent of Tribal Colleges, 83 percent of Historically Black Colleges 
and Universities, and 82 percent of Hispanic Serving Institutions cited 
limitations in funding as a primary reason for why they may not achieve 
their technology-related goals. For example, the Southwest Indian 
Polytechnic Institute in Albuquerque, New Mexico, serves about 670 
students and it uses distance education to provide courses for an 
associates degree in early childhood development to about 100 students. 
The school uses two-way satellite communication and transmits the 
courses to 11 remote locations. According to a technology specialist at 
the school, this form of distance education is expensive compared to 
other methods. As an alternative, the Institute would like to establish 
two-way teleconferencing capability and Internet access at the off-site 
locations as a means of expanding educational opportunities. However, 
officials told us that they have no means to fund this alternative.

About half of the schools also noted that they might experience 
difficulty in meeting their goals because they did not have enough 
staff to operate and maintain information technology and to help 
faculty apply technology. For example, officials at Diné College, a 
Tribal College on the Navajo Reservation, told us they have not been 
able to fill a systems analyst position for the last 3 years. School 
officials cited their remote location and the fact that they are 
offering relatively low pay as problems in attracting employees that 
have skills in operating and maintaining technology equipment.

Having a systematic approach to expanding technology on campuses is an 
important step toward improving technology at postsecondary schools. 
About 75 percent of Historically Black Colleges and Universities, 70 
percent of Hispanic Serving Institutions, and 48 percent of Tribal 
Colleges had completed a strategic plan for expanding their technology 
infrastructure. Fewer schools had completed a financial plan for 
funding technology improvements. About half of Historically Black 
Colleges and Universities and Hispanic Serving Institutions, and 19 
percent of Tribal Colleges have a financial plan for expanding their 
information technology.

Studies by other organizations describe challenges faced by Minority 
Serving Institutions in expanding their technology infrastructure. For 
example, an October 2000 study by Booz, Allen, and Hamilton determined 
that historically or predominantly Black colleges identified challenges 
in funding, strategic planning, and keeping equipment up to date. An 
October 2000 report by the Department of Commerce found that most 
Historically Black Colleges and Universities have access to computing 
resources, such as high-speed Internet capabilities, but individual 
student access to campus networks is seriously deficient due to, among 
other things, lack of student ownership of computers or lack of access 
from campus dormitories. An April 2003 Senate Report noted that only 
one Tribal College has funding for high-speed Internet.

Education has made progress in monitoring the technological progress of 
Minority Serving Institutions; however, its efforts could be improved 
in two ways. First, more complete data on how Historically Black 
Colleges and Universities and Tribal Colleges use Title III funds for 
improving technology on campus, and thus, the education of students, 
would help inform program managers and policymakers about progress that 
has been made and opportunities for improvement. Education's tracking 
system appears to include sufficient information on technology at 
Hispanic Serving Institutions. Second, although Education has set a 
goal of improving technology capacity at Minority Serving Institutions, 
it has not yet developed a baseline against which progress can be 
measured. If Education is to be successful in measuring progress in 
this area, it may need to take a more proactive role in modifying 
existing research efforts to include information on the extent to which 
technology is available at schools.

Committee hearings such as this, reinforce the importance of effective 
monitoring and good data collection efforts. As the Congress considers 
the status of programs that aid Minority Serving Institutions, or 
examines creating new programs[Footnote 15] for improving technology 
capacity at these institutions, it will be important that agencies 
adequately track how students benefit from expenditures of substantial 
federal funds. Without improved data collection efforts, programs are 
at risk of granting funds that may not benefit students.

Accrediting Agencies Have Made Progress in Ensuring the Quality of 
Distance Education Programs; However, Two Areas May Merit Attention:

Accrediting agencies have made progress in ensuring the quality of 
distance education programs. For example, they have developed 
supplemental guidelines for evaluating distance education programs and 
they have placed additional emphasis on evaluating student outcomes. 
Additionally, the Council on Higher Education Accreditation--an 
organization that represents accrediting agencies--has issued guidance 
and several issue papers on evaluating the quality of distance 
education programs. Furthermore, some accrediting agencies have called 
attention to the need for greater consistency in their procedures 
because distance education allows students to enroll in programs from 
anywhere in the country. While progress has been made, our preliminary 
work has identified two areas that may potentially merit attention.

* While accrediting agencies have made progress in reviewing the 
quality of distance education programs, there is no agreed upon set of 
standards for holding schools accountable for student outcomes. In 
terms of progress made, for example, the Council on Higher Education 
Accreditation has issued guidance on reviewing distance education 
programs. In addition, some agencies have endorsed supplemental 
guidelines for distance education and four of the seven agencies have 
revised their standards to place greater emphasis on student learning 
outcomes. Not withstanding the progress that has been made, we found 
that agencies have no agreed upon set of standards for holding 
institutions accountable for student outcomes. Our preliminary work 
shows that one strategy for ensuring accountability is to make 
information on student achievement and attainment available to the 
public, according to Education. The Council on Higher Education 
Accreditation and some accrediting agencies are considering ways to do 
this, such as making program and institutional data available to the 
public; however, few if any of the agencies we reviewed currently have 
standards that require institutions to disclose such information to the 
public.

* The second issue involves variations in agency procedures for 
reviewing the quality of distance education. For example, agency 
procedures for reviewing distance education differ from one another in 
the degree to which agencies require institutions to have measures that 
allow them to compare their distance learning courses with their 
campus-based courses. Five agencies require institutions to demonstrate 
comparability between distance education programs and campus-based 
programs. For example, one agency requires that "the institution 
evaluate the educational effectiveness of its distance education 
programs (including assessments of student learning outcomes, student 
retention, and student satisfaction) to ensure comparability to campus-
based programs." The two other agencies do not explicitly require such 
comparisons.

Certain Statutory Requirements Limiting Federal Aid to Students 
Involved in Distance Education May Cause Some Students to Lose 
Eligibility for Such Aid:

Finally, we found that if some statutory requirements--requirements 
that were designed to prevent fraud and abuse in distance education--
remain as they are, increasing numbers of students will lose 
eligibility for the federal student aid programs. Our preliminary work 
shows that 9 schools that are participating in Education's Distance 
Education Demonstration Program[Footnote 16] collectively represent 
about 200,000 students whose eligibility for financial aid could be 
adversely affected without changes to the 50 percent rule--a statutory 
requirement that limits aid to students who attend institutions that 
have 50 percent or more of their students or courses involved in 
distance education. As part of the demonstration program, 7 of the 9 
schools received waivers from Education to the 50 percent rule so that 
their students can continue to receive federal financial aid. We 
identified 5 additional schools representing another 8,500 students 
that are subject to, or may be subject to, the rule in the near future 
if their distance education programs continue to expand. These 5 
schools have not received waivers from Education.

While the number of schools currently affected is small in comparison 
to the over 6,000 postsecondary schools in the country, this is an 
important issue for more than 200,000 students who attend these 
schools. In deciding whether to eliminate or modify these rules, the 
Congress and the Administration will need to ensure that changes to 
federal student aid statutes and regulations do not increase the 
chances of fraud, waste, and abuse to federal student financial aid 
programs.

Mr. Chairman, this concludes my testimony. I will be happy to respond 
to any questions you or other members of the Subcommittee might have.

Contacts and Acknowledgments:

For further information, please contact Cornelia M. Ashby at (202) 512-
8403. Individuals making key contributions to this testimony include 
Jerry Aiken, Neil Asaba, Kelsey Bright, Jill Peterson, and Susan 
Zimmerman.


FOOTNOTES

[1] The Higher Education Act of 1965, as amended, defines distance 
education as an educational process in which the student is separated 
in time or place from the instructor (20 U.S.C. 1093(h)). 

[2] The three main types of Minority Serving Institutions are 
Historically Black Colleges and Universities, Tribal Colleges, and 
Hispanic Serving Institutions. Other types of Minority Serving 
Institutions include Alaska Native and Native Hawaiian serving 
institutions. 

[3] U.S. General Accounting Office, Distance Education: More Data Could 
Improve Education's Ability to Track Technology at Minority Serving 
Institutions, GAO-03-900 (Washington, D.C.: Sept. 12, 2003). 

[4] U.S. Department of Education, Distance Education at Degree-Granting 
Postsecondary Education Institutions: 2000-2001 (Washington, D.C.: 
July 2003).

[5] We analyzed Education's National Postsecondary Student Aid Study 
and the Integrated Postsecondary Educational Data System (IPEDS).

[6] These include institutions in U.S. territories, such as Puerto 
Rico, that are authorized to distribute federal student financial aid.

[7] The Web-Based Education Commission, The Power of the Internet for 
Learning: Moving from Promise to Practice (Washington D.C.: December 
2000).

[8] Education defines an accrediting agency as a legal entity, or that 
part of a legal entity, that conducts accrediting activities through 
voluntary, nonfederal peer review and makes decisions concerning the 
accreditation or preaccreditation status of institutions, programs, or 
both.

[9] Students who took their entire program through distance education 
courses received an estimated $763 million in federal student aid in 
the1999-2000 school year. Students who took at least one distance 
education course may have also received federal student aid; however, 
the data sources used by National Postsecondary Student Aid Study do 
not distinguish aid awarded for distance education courses and 
traditional classroom courses. 

[10] The data from our survey and survey conducted by Education are not 
completely comparable because they cover two different time periods. 
Education's survey covered the 2000-01 school year while our survey 
covered the 2002-03 school year. 

[11] Historically Black Colleges and Universities and Tribal Colleges 
are generally smaller in size than postsecondary institutions overall. 
The average Hispanic Serving Institution, however, was more than two 
times larger than the average postsecondary institution in 2000. 

[12] The two most common modes of delivering distance education for 
Minority Serving Institutions were (1) on-line courses using a computer 
and (2) live courses transmitted via videoconference.

[13] Forty-four percent of Historically Black Colleges and 
Universities, 37 percent of Hispanic Serving Institutions, and 39 
percent of Tribal Colleges did not offer any distance education.

[14] Conversely, only 10 percent of Tribal Colleges that are not 
involved in distance education indicated that classroom education best 
meets the needs of their students.

[15] In April 2003, the Senate passed S. 196, Minority Serving 
Institution Digital and Wireless Technology Opportunity Act of 2003 to 
strengthen technology infrastructure at Minority Serving Institutions. 
If enacted, this statute would create a new grant program at the 
National Science Foundation for funding technology improvements at 
institutions that serve a high percentage of minority students. 

[16] The Congress created the demonstration program in the 1998 
amendments to the Higher Education Act to study and test possible 
solutions to federal student aid issues related to distance education. 
The program has authority to grant waivers on certain statutory or 
regulatory requirements related to distance education and the federal 
student financial aid programs.