Finding Text
Criteria: In accordance with CFR sections 34 CFR § 668.164 and 34 CFR § 690.63, "Title IV funds, including Pell Grants, must be disbursed in a manner that aligns with the start of each academic term, ensuring that students have timely access to funds for educational expenses. Institutions are required to handle Pell Grant disbursements promptly to support students’ needs within the academic term. Payments are distributed based on specific payment periods, typically aligned with semesters, quarters, or other designated terms. Funds must be available within the designated academic period to meet the financial needs of students effectively."
Condition: We reviewed a sample of 40 students who received financial aid and had enrollment status changes during the fiscal year. Of the 40 students tested, one student did not receive his Pell payment for the Fall 2023 term. The student did not receive his Pell payment until the end of the fall academic period resulting in a missed disbursement on behalf of the student. Disbursement was made later in the same fiscal year during a later term.
Population and Sample Size:
Number
Dollars Questioned Cost
Population 1,907 $ N/A $ N/A
Sample 40 N/A N/A
Not in compliance 1 N/A None
Effect: The institution may be required to return funds to the Department of Education. This situation can create financial challenges for the institution and impact students who may no longer have access to those funds. Students may experience financial hardship if Pell Grants or other Title IV funds are not disbursed on time, leading to difficulties in paying tuition, fees, and other educational expenses. Such delays can potentially affect their academic performance or ability to continue their studies. Additionally, if an institution consistently fails to comply with federal regulations, it risks losing its eligibility to participate in federal financial aid programs, severely limiting the financial aid options available to its students.
Cause: The college received the student’s 2023-24 ISIR on January 2, 2024, after the end of the fall 2023 semester. The student’s fall aid was not paid out as the payment process at that time was only run for the Spring 2024 semester. The college found that the student’s fall aid did not disburse during the summer of 2024 and disbursed the aid the student was eligible to receive for the fall semester.
Recommendation: We recommend that the college create an internal process of review to ensure that financial aid awards are disbursed in the semester that they are awarded.