The General Accounting Office (GAO) examined the extent to which the financial aid provided under Title IV of the Higher Education Act to students enrolled in proprietary schools is being spent to train individuals for demand occupations. Job opening projections in 12 states were used to estimate job demand, the National Center for Education Statistics' Integrated Postsecondary Education Data System was used to estimate job supply, and financial aid information was obtained from the Department of Education's student loan and Pell grant records. It was discovered that, in fiscal year 1995, $273 million in Title IV funds subsidized 112,000 proprietary schools to train students for fields with projected labor supply surpluses in the 12 states reviewed. In some cases, proprietary school students received training in occupations with projected supply surpluses in several states (for example, 28,000 proprietary school students were trained in electrical/electronic technology in 7 states that had a labor surplus). It was recommended that prospective students of occupation-specific training programs be given access to labor supply and demand projections. (Appended are the following: information about data sources and methodology, detailed state-level results, comments from the Department of Education, and lists of GAO contacts. Twelve tables are included.) (MN)