The purpose and direction of the quality improvement program of the U.S. Department of Education's Office of Student Financial Aid (OSFA) are described. The improvement program was designed to develop a systematic approach to identify, measure, and correct errors in the student aid delivery system. Information is provided on the general approach to quality improvement developed during the Pell Grant Quality Control Study. The approach included targeting technical assistance on high error-prone areas; and emphasizing both manual and automated quality control (QC) measurement as well as the development of evaluation measures. The design for the OSFA improvement program is reviewed, with attention to institutional QC, external QC, internal OSFA QC, and a QC management information system. Critical targets for internal quality improvement are identified and measures are proposed. Also considered are the role of the corrective action component of the quality improvement program, an implementation plan for the program, and priorities for ongoing quality improvement. Appended are an overview of the QC management information system, a list of current delivery system activities, and Guaranteed Student Loan manual interest billing forms.(SW)