The validity of data provided through rejection edits of students applying for Basic Educational Opportunity Grants (BEOGs) was assessed. The question of whether some edits were associated with applicants' failure to reapply was also considered. The analysis used the 1978-1979 BEOG applicant population. A total of 3,823,008 applicants had applied for BEOGs and 120,005 had been selected for validation. Although rejection comments that were studied varied in effectiveness, they generally identified greater levels of misreporting than were found through validation of a representative sample of applicants. Ninety-seven percent of the applicants who were ever rejected were rejected on their initial application. Applicants rejected for reporting inconsistencies in their assets tended to have the highest rates of reapplying and obtaining an eligibility index. Applicants who were most likely to be rejected reported inconsistencies concerning marital status, income, or household size. These applicants also had low rates of reapplying. With some exceptions, the edits appeared to identify problems and increase data validity. However, some applicant subgroups needed assistance in obtaining an eligibility index after rejection. Appendices provide statistical findings and rejection codes (e.g., income by rejection reason). (SW)