GAO INVESTIGATIONS SHOW THAT FEDERAL GOVERNMENT DEBT COLLECTION IS NOT KEEPING PACE WITH THE INCREASING NUMBER OF DEBTS. UNITED STATES CITIZENS AND ORGANIZATIONS OWED OVER $95 BILLION AT THE START OF FISCAL YEAR 1979. ESTIMATES FROM SOME FEDERAL AGENCIES SHOW THAT AT LEAST $3.5 BILLION WILL BE WRITTEN OFF AS UNCOLLECTIBLE. LOSSES, HOWEVER, WILL PROBABLY BE GREATER BECAUSE NOT ALL AGENCIES HAVE REPORTED SUCH DATA. GAO REVIEWS OF DEBT COLLECTION EFFORTS HAVE FOUND THAT FEDERAL EFFORTS HAVE NOT BEEN AGGRESSIVE AND THAT COLLECTION METHODS HAVE BEEN EXPENSIVE, SLOW, AND INEFFECTIVE. GAO HAS INITIATED REVISIONS TO THE FEDERAL CLAIMS COLLECTION STANDARDS TO STRENGTHEN COLLECTION EFFORTS. HOWEVER, INTRAGOVERNMENTAL DISAGREEMENTS OVER SEVERAL ISSUES ARE IMPENDING EFFORTS TO IMPLEMENT THESE STANDARDS; LEGISLATION MAY BE NEEDED TO RESOLVE THESE ISSUES. GAO AND THE DEPARTMENT OF JUSTICE ARE CONSIDERING THE INCREASED USE OF AGENCIES TO LITIGATE THEIR OWN DEBTS, THEREBY REDUCING THE GROWING BACKLOG OF CASES REFERRED TO UNITED STATES ATTORNEYS. OBTAINING ADDRESSES OF DEBTORS FROM THE INTERNAL REVENUE SERVICE (IRS) WOULD BE OF GREAT ASSISTANCE IN COLLECTING DEBTS. HOWEVER, IRS INTERPRETATION OF ACCESS RESTRICTION PREVENTS SUCH EXCHANGES OF INFORMATION. GAO PLANS ACTION TO REMOVE THIS RESTRICTION. GOVERNMENT USE OF PRIVATE COLLECTION AGENCIES APPEARS TO OFFER POTENTIAL, ESPECIALLY FOR THE COLLECTION OF SMALL DEBTS. CONGRESS HAS AUTHORIZED THE OFFICE OF EDUCATION TO TEST THE USE OF PRIVATE AGENCIES; GAO PLANS TO MONITOR THE RESULTS. RECENT GAO REPORTS ON DEBT COLLECTION ARE APPENDED. (AUTHOR ABSTRACT MODIFIED--RCB)