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If you look at the documents themselves, they were processed back in mid-2001. These copies were the one earmarked for the "employeer/trainer." The two suicide pilots probably got their own copies back when they were originally processed. You might also notice from inspecting the documents, that they were filled out and sent in by the pilot training company. This is routine. In technical schools and colleges, it is normal for the paperwork to be handled by someone who knows the system.

With that said, why the copy intended for the school languished for months at INS with out being sent out, or that the files were not culled for this information during the investigation after September 11, is beyond me.

It is my hope that INS is not just pushing paper these days without seriously checking out what they are approving. If INS is just going about business as usual, serious changes need to be made.

"With that said, why the copy intended for the school languished for months at INS with out being sent out, or that the files were not culled for this information during the investigation after September 11, is beyond me."

During an interview, a former INS employee revealed that the paperwork to which you refer is processed by a civilian contracting firm in Kentucky. Most likely it is a "low bidder" who hires the caliber of people from the same gene pool as airport security.
Also, the feds have crappy computer systems that cannot react. Remember the IRS system controversy?
IMHO, there are no simple [legal] solutions!