Audit 370986

Need Analysis DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loans Federal Award Identification #: 2024-2025 Financial Aid Year Condition: Students who only attended one term were not initially appropriately awarded subsidized aid based on need. Criteria: 34 CFR 685.200(a) Questioned Costs: $6,646 Context: Out of 60 student tested for proper need analysis, there were 2 students over awarded subsidized loans. Cause: In the 2024-2025 award year, under the new FAFSA simplification regulations, the University was no longer allowed to prorate the Student Aid Index (previously known as the Estimated Family Contribution) for less than a year of enrollment. The 2 students in the sample who were over awarded subsidized loans both graduated in the Fall; however, they had no need in their financial aid budget based on their Cost of Attendance and Student Aid Index. Therefore, they were ineligible for subsidized loans. Effect: Students received subsidized federal aid for which they were not eligible. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University set up reports in the student information system to periodically check for over or under awarding of need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.