The objectives of the Pell Grant quality control (QC) system and the general definition of QC are considered. Attention is also directed to: the objectives of the Stage II Pell Grant QC system design and testing project, the approach used to develop the QC system, and the interface of the QC system and the Pell Grant delivery system. The comprehensive and strategic approaches to QC system development are compared using the following objectives for the QC system as evaluative criteria: reduce error in the Pell Grant program, maintain flexibility to add additional programs, pilot test QC system components, and produce a sound QC methodology. The following QC options are assessed with attention to feasibility, potential for reducing error, developmental costs, and interface with delivery system: a manual QC system with new data sources, a combined automated/manual QC system with new data sources, a combined automated/manual system with existing data sources, and a fully automated, integrated system. A combined system with existing data sources is recommended. Appended are preliminary descriptions of QC subsystems that cover the Office of Student Financial Aid subsystem, the institutional subsystem, the Pell processor subsystem, and the student (applicant) subsystem. (SW)