The American Association of Cosmetology Schools (AACS) criticized the General Accounting Office (GAO) report which stated that federal student financial aid was being spent to train proprietary school students for oversupplied occupations. The GAO defended the following findings: (1) an occupation-specific training program that lacked a general education component made proprietary school graduates less versatile and limited their opportunities for employment beyond their field; (2) proprietary school graduates were less motivated to relocate; (3) there were labor supply oversupplies, since its research went beyond the "Occupational Outlook Handbook" to compare job openings expected with the corresponding number of postsecondary graduates who completed training programs in 12 states; (4) employment directly affected a graduate's ability to repay loans, and default rates were an important gauge of the quality and usefulness of a postsecondary education program; (5) state-level data provided a better approximation of employment levels at local levels than did national data; (6) state data confirmed an oversupply of respiratory therapists; (7) barbering/cosmetology and electrical/electronics occupations were oversupplied; and (8) the Student Right-to-Know Act should be amended to ensure that prospective proprietary students have access to employment and earnings projections. (An attachment describes how the demand for proprietary school graduates was computed.) (YLB)