It appears that many of the problems plaguing the Federal Student Aid Programs are also undermining the Pell Grant program, not so much from dishonesty on the part of students, but by dishonesty on the part of schools. This document presents testimony and prepared statements concerning the allegations of fraud, abuse, and mismanagement in the Federal Pell Grant program and the effectiveness of the Department of Education in detecting and responding to these problems. Two-thirds of the document is an appendix of 96 exhibits of selected documents, letters, affidavits, and reports from witnesses in order of their appearance before the committee. Among the witnesses testifying before the committee were the following individuals: Senator Claiborne Pell of Rhode Island; Richard C. Stiener, Director of the Office of Special Investigations, U.S. General Accounting office; James B. Thomas, Jr., Inspector General, U.S. Department of Education; David A. Longanecker, Assistant Secretary, Office of Postsecondary Education, U.S. Department of Education; and Sister Janet Fitzgerald, President of Molloy College, Long Island, New York. (GLR)