Finding Text
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
ALN Numbers: Various
Award Period: June 1, 2023 through May 31, 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) outline the maximum subsidized and unsubsidized loan amounts for students based on their dependency status, year of education, and other factors.
Condition: During our testing, we noted 1 instance out of 40 students tested where the unsubsidized Stafford loan awarded to the student was over the maximum amount they were eligible for.
Questioned Costs: We identified $5,000 was over-awarded.
Context: The College did not have procedures in place to detect this overaward.
Cause: The College did not appropriately determine the student's level of education when awarding the Unsubsidized Stafford Loan.
Effect: The student was awarded incorrectly as they were not eligible for the specific awarded amount.
Repeat Finding: No
Recommendation: We recommend the College evaluate its procedures and a policy around how level of education is determined and verified when packaging and awarding students.
Views of Responsible Officials: There is no disagreement with the audit finding.