This report provides an evaluation of the implementation of the Federal Direct Student Loan Program (FDSLP) and the Federal Family Education Loan Program (FFELP), administered by the U.S. Department of Education (ED) to provide educational loans to postsecondary students and their families. The report recommends that ED: (1) ensure that FDSLP disbursement rules coincide with Pell Grant and campus-based programs; (2) ensure identical terms and conditions between FDSLP and FFELP; (3) create a comprehensive FDSLP system design to prevent disbursements from multiple sources and loans in excess of limits; (4) reassess the dependence of FDSLP on the national Student Loan Data System; (5) modify computer software and administrative procedures to minimize complexity and workload for institutions; (6) improve the timing and techniques used for institutional training; (7) improve communication between ED and institutions; (8) develop a system to monitor lender withdrawals from FFELP and changes to FFELP lender policies that can affect access to loan capital; and (9) ensure that a lender-of-last-resort is available to all students. An appendix lists the report's recommendations. (MDM)