Audit 376689

2025-001 - Non-Compliance with Timely Student Enrollment Change Submissions to the National Student Loan Data System (NSLDS) Grantor: U.S. Department of Education Cluster Name: Student Financial Assistance Cluster Award Name: Federal Direct Loan Program Award Year: 6/1/2024- 5/31/2025 Award Number: Not applicable Assistance Listing Number: 84.268 Criteria: In accordance with 34 CFR 685.309, institutions are required to report enrollment information under the Federal Direct Loan program through NSLDS. The enrollment information, inclusive of Campus Level and Program Level data, must be reviewed, updated and validated by the institution in a timely manner. Furthermore, for a student that received a Direct Loan and was enrolled or accepted for enrollment at the institution, and the student had ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended, the institution must report the change within 60 days from which the change was identified. Condition: We reviewed a sample of 25 students enrolled at the University who received either Pell and/or Direct Loans and had a change of enrollment status during the fiscal year. Of the 25 students tested, 14 students who received Direct Loans were not reported to NSLDS within the 60-day reporting timeframe. For these 14 students, each had graduated and were reported to NSLDS completely and accurately, but untimely. Although the change in enrollment was submitted to the National Student Clearinghouse (NSC) within 60 days, the changes were not received by the NSLDS from the NSC within the required timeframe, with the timing of reporting to the NSLDS occurring between 83 and 104 days from the date the change was identified. Cause: The University adjusted the academic calendar for fiscal year 2025 such that the spring semester ended one week later than prior year; however, it did not adjust the timing of its batch submissions of student status changes to NSC. This compressed the reporting timeline, allowing fewer days for NSC to report to NSLDS. Additionally, the University does not have an internal process in place to verify all student status changes communicated to the NSC are completely, accurately and timely communicated to the NSLDS. Effect: A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies, all of which are impacted by late reporting. Questioned Costs: None noted. Repeat Finding from Prior Year: No. Recommendation: We recommend taking into consideration changes to the academic calendar to ensure that the submission of student status changes are reported in a timely manner. Additionally, the University might consider first reporting graduated students as “Withdrawn” prior to the conferral of the students’ degree and at that time report the “Graduated” status to NSC. In addition, we recommend the University implement a periodic reconciliation process between NSLDS and NSC to verify the NSLDS completely, accurately and timely received communication of all student status changes. Management’s Corrective Action Plan: Management’s response is reported on “Management’s Views and Corrective Action Plan” at the end of this report.