Finding Text
Finding 2023-004 (continuing finding): Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency)
Statement of Condition: From our testing sample of twenty-five (25) students, we found three (3) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30-days of the disbursement to the student’s account.
Criteria: Federal loans, including PLUS Loans, should be disbursed in accordance with Volume 3 of the Federal Student Aid Handbook. Also, in accordance with 34 CFR 668.165, Notices and Authorizations, an institution must notify the student or parent of the date and amount of disbursement of Federal loans to a student’s ledger account within 30-days of the disbursement.
Effect of Condition: We found three (3) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30-days of the disbursement to the student’s account.
Cause of Condition: The College did have a policy to notify parents of their student’s PLUS Loan disbursements until the spring semester of 2024, when the prior audit finding was brought to the attention of management.
Recommendation: We recommend the College develop policies and procedures to address this issue.
Management’s Response: Management agrees and has a policy in place to implement these recommendations immediately.