Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Federal Direct Student Loans
Assistance Listing Number: 84.268
Federal Award Identification Number and Year: P268K231818; P268K241818; P268K251818 - 2024
Award Period: 7/1/2023 – 6/30/2024
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 loan amounts for students based on their dependency status, year of education, and other factors.
Condition: One out of forty students tested was under-awarded Subsidized Direct loans.
Questioned costs: $1,479
Context: During our testing, we noted on student’s Subsidized Direct loan awarded and disbursed was less than the maximum amount they were eligible to receive.
Cause: The University did not re-evaluate the student's account for additional loan eligibility after an adjustment to other aid was made.
Effect: The student did not receive the maximum amount of eligible aid.
Repeat finding: No.
Recommendation: We recommend the University evaluate its procedures around packaging and awarding students to ensure loan eligibility is reassessed prior to disbursement.
Views of responsible officials: There is no disagreement with the audit finding.