Finding Text
Finding 2024-003: Eligibility
Federal Program: Federal Direct Student Loans [84.268]
Criteria: Per the 2023-2024 Federal Student Aid Handbook, chapter 3 Packaging Aid, an institution must determine an undergraduate student’s maximum Direct Subsidized Loan eligibility before originating a Direct Unsubsidized Loan for the student.
Condition: During testing of eligibility, 2 out of 40 students were not awarded their maximum subsidized loan amounts they should have been awarded.
Cause: The Campus Café software was awarding incorrect Direct Loan amounts to students when batching ISIR reports.
Effect: The students did not receive the most advantageous loan options first.
Questioned Costs: No questioned costs.
Context: This is a systemic problem.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the Academy review their controls to ensure students are receiving the most advantageous loan options first as part of the packaging process.