This report presents testimony, along with prepared letters, statements, and supplemental materials, submitted before a House congressional hearing concerned with the reauthorization of the Higher Education Act of 1965 in general, and the integrity and quality of grant and loan assistance for students in particular. The testimony and statements address two problems in the student loan assistance program: (1) the imbalance between grants and loans; and (2) the Department of Education's poor oversight and management of the student assistance program. Specifically, the first problem concerns the fact that loans to students comprise nearly 75% while grants account for the remaining 25% of student aid, a reversal of the way the loan assistance programs were expected to work. The second problem comes from an Office of Management and Budget report, along with one from the Education Department, which concluded that the Department of Education's management practices had contributed to high student loan default rates, and fraud and abuse in the student assistance programs. In addition, it was concluded by the Government Accounting Office that the Department's financial statements were unreliable because the accounting system that the Department is using does not produce accurate information. (GLR)