Finding Text
Federal Agency: U.S. Department of Education
Federal Program Title: Student Financial Assistance Cluster
Federal Assistance Listing Number: 84.063, 84.007, 84.268, 84.379 & 84.033
Award Period: 7/1/2023 – 6/30/2024
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.203(a) outlines the maximum subsidized loan amounts for students based on their dependency status, year of education, and other factors.
Condition: During our testing, we noted 1 of 36 students was not awarded the correct subsidized loan amount based off their dependency status and year of education.
Questioned Costs: $500
Context: During our testing, the student’s Title IV was auto-packaged and did not correctly factor in all the student's credits resulting in an under award of subsidized loan funds.
Cause: The University did not package Title IV funds correctly based on dependency status and year of education.
Effect: The student was eligible for more subsidized loan funds than awarded.
Repeat Finding: No.
Recommendation: We recommend the University evaluate its procedures and policies around packaging Title IV based on need.
Views of Responsible Officials: Management agrees with the finding.