Finding Text
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.203 specifies the annual and aggregate loan limits the Institutions may not exceed for an academic year of study under the Direct Loan program and also requires loans to be prorated for a program of student that is less than a full academic year in length. In addition, per the Uniform Guidance 2 CRF 200.303, non-federal entities receiving federal awards are required to establish and maintain internal controls designed to reasonable ensure compliance with federal laws, regulations, and program compliance requirements..
Condition: During our testing, we noted two students who were awarded incorrect amounts for Subsidized and Unsubsidized Direct Loans.
Questioned costs: $1,247
Context: During our testing of forty students, we noted one student was over awarded unsubsidized loans, and a second student was under awarded subsidized loans and over awarded unsubsidized loans.
Cause: One student was awarded to an incorrect cost of attendance. A second student was awarded a maximum unsubsidized loan and remaining subsidized loan up to their remaining need.
Effect: The University paid one student an amount of loans that was greater than the student was eligible to receive and paid one student an amount of loans that was less than the student was eligible to receive.
Repeat Finding: Yes, 2023-001
Recommendation: We recommend that the University review their awarding procedures and implement procedures to ensure direct loans are awarded within student eligibility.
View of Responsible Official: The University agrees with the finding.