Finding Text
Program: Federal Direct Student Loans
Assistance Listing Number: 84.268
Federal Agency: U.S. Department of Education
Federal Award Identification Number: P268K242154
Federal Award Year: June 30, 2024
Criteria: 34 CFR 685.309(b) states that upon receipt of an enrollment report from the Secretary, a school must update all information included in the report and return the report to the Secretary in the manner and format prescribed by the Secretary and within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that a loan under title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has 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.
Condition: For one of the students tested, the effective date that was reported to National Student Loan Data System (NSLDS) did not match the date that the student withdrew, and the student's change of enrollment status was not reported within the 60-day requirement. There was one other student who had a change of enrollment status that was not reported within the 60-day requirement. However, the students were ultimately reported to the NSLDS.
Questioned Costs: None.
Context: Noncompliance with Federal regulations was noted for two of the 25 students who were tested. The two students were reported to NSLDS 62 days after withdrawal from the University, one of the two student also has a different effective date on NSLDS when compared to the University records. The sample was not considered statistically valid.
Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by schools. If an institution does not review, update and verify student enrollment statuses, effective dates of the enrollment status, and the anticipated completion dates, then the Title IV student loan records will be in accurate impacting student loan repayments.
Cause: There were not proper processes in place surrounding enrollment reporting in order to verify that the correct dates are reported to NSLDS within the required timeframes.
Recommendation: It is recommended that policies and procedures are put in place to verify that the correct effective dates are reported to NSLDS within required time frames. This could include a review of withdrawal or graduation dates compared to the effective dates reported to NSLDS to make sure they are accurate.
Management's Response:
Management agrees with the finding and the recommendations made by the auditor. Over the next thirty days Management will analyze the enrollment reporting control environment including (but not limited to) how enrollment status effective dates, for students who withdrawal after the completion of the semester, are identified and accounted for by Management. Within forty-five days, Management will implement enhanced enrollment reporting processes to ensure accurate and timely enrollment statuses are reported to NSLDS in compliance with federal regulations.