Finding Text
Finding number: 2024-001
Federal agency: U.S. Department of Education
Programs: Student Financial Assistance Cluster
ALN #: 84.063 and 84.268
Award year: 2024
Criteria
According to 34 CFR 685.309(b)(2):
Unless [the institution] 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 –
(i) 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; or
(ii) A student who is enrolled at the school and who received a loan under title IV of
the Act has changed his or her permanent address.
The Dear Colleague Letter GEN-12-6 issued by the U.S. Department of Education (“ED”) on
March 30, 2012 states that in addition to student loan borrowers, Enrollment Reporting files will
include two additional groups of students: Pell Grant and Perkins Loan recipients.
According to 2 CFR Part 200, Appendix XI Compliance Supplement updated April 2018:
Under the Pell Grant and loan programs, institutions must complete and return within 15
days the Enrollment Reporting roster file placed in their Student Aid Internet Gateway
mailboxes sent by ED via the National Student Loan Data System (“NSLDS”). The
institution determines how often it receives the Enrollment Reporting roster file with the
default set at a minimum of every 60 days. Once received, the institution must update for
changes in student status, report the date the enrollment status was effective, enter the
new anticipated completion date, and submit the changes electronically through the batch
method or the NSLDS website. Institutions are responsible for timely reporting, whether
they report directly or via a third-party servicer. Condition
The Federal Government requires the College to report student enrollment changes to the
National Student Loan Data System (“NSLDS”) within 60 days. During our testing, we noted 5
students, out of a sample of 40, that had incorrect effective dates reported to NSLDS, 4 students,
out of a sample of 40, that had an incorrect student status and 4 students, out of sample of 40,
were not reported to NSLDS within the required timeframe.
Cause
The College did not have adequate procedures in place to ensure that students with status
changes had their effective date correctly reported to NSLDS and within the required timeframe.
Effect
The College did not report the students’ correct effective dates to NSLDS and within the
required timeframe, which may impact the students’ loan grace periods.
Questioned Costs
Not applicable
Perspective
Our sample was not, and was not intended to be, statistically valid. Of the 40 students selected
for testing, 5 students, or 12.5% of our sample, had incorrect effective dates reported to NSLDS,
4 students, or 10% of our sample, had an incorrect student status and 4 students, or 10% of our
sample, were not reported to NSLDS within the required timeframe.
Identification as a Repeat Finding, if applicable
Yes, see finding 2023-001.
Recommendation
The College should provide training to employees responsible for processing information for the
NSLDS and ensure that they have adequate knowledge in the related rules and regulations. This
training should include an explanation of the effective date of a student’s withdrawal, the
importance of reporting the correct effective date and the consequences of incorrect reporting.
This oversight should also ensure that the effective date reported to NSLDS is consistent with the
date the student separated from the College.
View of Responsible Officials
The College agrees with the finding.