Finding Text
Federal Program: 84.268
Criteria: Under 34 CFR 668.164(h)(2), institutions must pay the resulting credit balance directly to the student or parent borrower within 14 days after 1) the first day of class of a payment period if the credit balance occurred on or before that day, or 2) the balance occurred if occurring after the first day of class.
Condition: For the year under audit, the University was one day late in paying a credit balance to the student.
Cause: There was a delay by senior management in authorizing the wire transfer (the request had been processed on time).
Effect: The University did not comply with 34 CFR 668.164(h)(2).
Context: This circumstance involved one student out of a sample of 23 for a population of 227.
Recommendation: The University should bolster its processing procedures to help ensure delays are monitored and, if necessary, have a second member of senior management available to authorize these transfers.
Management’s
View: See Corrective Action Plan.