Audit 391821

Assistance Listing Number, Federal Agency, and Program Name 84.268, U.S. Department of Education, Student Financial Assistance Program Federal Direct Student Loan Program Federal Award Identification Number and Year P268K241627, 2024 2025 Pass through Entity N/A Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria For direct loan disbursement, the institution must provide timely notification to the student of the (1) date and amount of the disbursement, (2) student/parent’s right to cancel, and (3) procedure and time by which the student or parent must notify the institution that he or she wishes to cancel (34 CFR 668.165). Condition The University did not provide notifications to certain students related to direct loan disbursements. Questioned Costs None If Questioned Costs Are Not Determinable, Description of Why Known Questioned Costs Were Undetermined or Otherwise Could Not Be Reported N/A Identification of How Questioned Costs Were Computed N/A Context There were 7 students receiving direct loans in a sample of 40 students for disbursements who did not receive the notification. Cause and Effect A control was lacking to ensure the notifications were sent to all students receiving direct loans. Recommendation We recommend a control be implemented to ensure notifications are sent to all students receiving direct loans. Views of Responsible Officials and Corrective Action Plan While the University has documented procedures in place for the disbursement of federal funds and required post-disbursement notifications to students, the finding identified related to only students who received both a Federal PLUS loan and a Federal Direct Loan during 2025. University did not properly send a post-disbursement notification to 117 out of 247 students who received both a federal PLUS loan as well as a Federal Direct Loan on a specific date during fiscal year 2024-2025. The University will adjust its internal processes to ensure all students who receive federal loans are sent post-disbursement email notifications by performing a review of the IT system and working toward fully automated notification settings to ensure all students are captured in the post-disbursement notification process.