The Pell Grant Quality Control Study of 1982-83, the third stage of a contract with the Department of Education, was designed to identify program error rate, to measure the impact of increased validation activity, and to propose corrective actions to reduce the misallocation of program funds. A nationally representative sample of approximately 4,000 students was drawn from a stratified random sample of 317 participating institutions. The results showed that Pell Grant recipients in 1982-83 were granted $129, or 13 percent, more than they should have been. Both student and institutional error dropped between 1980-81 and 1982-83. The study confirmed that institutions complied with the revised validation requirements for the Pell Grant program in 1982-83, reflected in a $22 million reduction in the net Adjusted Gross Income error. Several correction action alternatives are presented to further reduce both student and institutional error. Stage One of this study determined program-wide rates of discrepancy between actual awards and what should have been awarded. Stage Two began the design of a quality control system for the Pell program, performed some error analyses, and prepared corrective action recommendations for specific features of related student aid programs. Stage Three, a replication with significant improvements of Stage One, has the additional objective of determining changes in program error over time. Stage Three also includes an assessment of the degree to which institutions are fulfilling their responsibilities with regard to the expanded validation requirement. (Author/LB)