Summary: Federal assistance provided to institutions of higher education for academic facilities construction under the Higher Education Act, the Public Health Service Act, and the Housing Act of 1950, were surveyed. These acts authorize financial assistance for the construction of academic, medical school, and housing and student services facilities. In view of the various financial problems which beset colleges and institutions, 25 educational institutions were surveyed.
Only limited on-site visits to institutions receiving grants have been made, and no written confirmation was required. While trustees are supposed to monitor government loans, certain trustees were not enforcing the terms of the indentures. Audit reports that the institutions furnish the trustees had several deficiencies. Some institutions had converted facilities constructed with Department of Housing and Urban Development (HUD) loans to other purposes. HUD and the Office of Education have conflicting regulations regarding annual interest grants.
