Results of an investigation of the Department of Housing and Urban Development's (HUD's) administration of the college housing loan program are presented. Management weaknesses in the selection of projects for funding and delays in final approval of loan agreements are discussed. The review concentrated largely on construction projects, but limited information on the status of energy conservation projects is included. It is claimed that HUD's process for selecting projects is inadequate to ensure that only essential projects based on current severe housing shortages are funded. Additionally, the formula HUD uses to make funding decisions is claimed to provide inadequate information. Long delays in the final approval of loan agreements for successful applicants are claimed to have resulted in cost increases and lost energy savings. Among the recommendations made by the General Accounting Office to HUD and the Department of Education which will administer the program after fiscal year 1980, are the following: project selection criteria should be reviewed and revised; and attention should be given to applications from schools that have not previously housed their students to assure housing is not being requested to expand the schools' enrollment market. (SW)