Institutions that serve large proportions of low-income and minority students may receive funding under Titles III and V of the Higher Education Act. In fiscal year 2008, $667 million in grants were awarded to over 500 institutions. GAO was asked to determine (1) the characteristics of institutions eligible to receive grants under Titles III and V and characteristics of students served; (2) any challenges grantees face, and how they spent Title III and V funds to address these challenges; and (3) the extent to which the Department of Education (Education) monitors the financial and programmatic performance of grantees, and uses this information to target its technical assistance. To address these objectives, GAO analyzed data from a representative sample of grant applications and annual performance reports for the entire population of fiscal year 2006 grantees. GAO also interviewed officials from Education and 27 grantee institutions, and conducted financial site visits at other 7 grantee institutions. GAO recommends that Education develop a comprehensive, risk-based approach to target monitoring and technical assistance; follow-up on improper uses of grant funds identified in this report; ensure staff training needs are fully met; disseminate information about implementation challenges and successful projects to grantees; and develop appropriate feedback mechanisms. Education agreed with our recommendations. Appended are: (1) Objectives, Scope, and Methodology; (2) Appendix II Institutional and Student Characteristics, by Program Eligibility Status; (3) Appendix III Fiscal Year 2002 to 2005 Grantee Expenditures by Focus Area; (4) Comments from the Department of Education; and (5) GAO Contact and Staff Acknowledgments. (Contains 10 tables, 8 figures, and 26 notes.)