Linda G. Morra of the General Accounting Office testified on possible savings in the Department of Education in order to assist the House of Representatives' Appropriations Committee as they considered budget reductions and rescissions. Morra testified first on the need to reexamine programs previously suggested by the Department of Education for elimination because they duplicate other programs, their purposes are already achieved, or they are more appropriately funded through non-federal resources. Next Morra offered evidence on potential funding reductions in higher education programs. These included reductions to the Federal Family Education Loan and Direct Student Loan programs, efficiencies in the Pell Grant Program, and consolidation options among 22 smaller programs representing $1.1 billion, targeted to specific segments of the school population. Morra also suggested savings in employment training programs (61 programs that account for $9 billion in 1995) that currently serve overlapping populations. In closing testimony Morra cited potential means to reduce the negative impact of any Title I or other formula grant funding reductions. Appendixes list programs proposed for but not yet eliminated, options for reducing funding for student loans, options for reducing funding for Pell Grants, and programs that are candidates for consolidation. (Contains 15 references.) (JB)