Finding Text
Special Tests. Questioned Costs: $0. Condition: The College sent out Direct Loan notification letters that only gave the students 14 days to cancel their loans when the cancellation period is required to be 30 days. There was an instance where the College did not send out a direct loan notification email to a student as required. There was one instance where the post-withdrawal disbursement was calculated correctly but paid out before the federal funds letter was returned by the student authorizing the payment of this disbursement. Criteria: Per the Student Financial Assistance Program Compliance Supplement, May, 2024, the Special Test compliance requirements "Disbursements to or on Behalf of Students" and "Return of Title IV Funds", the College has many requirements pertaining to disbursement of Student Financial Assistance. The College must provide timely notification to the students of the date, amount, right to cancel, and the cancelation procedures. Also, for post-withdrawal disbursements, the College is required to provide notification of the post-withdrawal disbursement to the student or parent and that the post-withdrawal disbursement was made according to the student or parent's instructions. Cause: For the first issue noted in the condition, the College was not aware of the 30 day cancelation period. The second two issues noted in the condition were due to isolated human error. Effect: The College was not in compliance with all the disbursement requirements under Special Tests. Recommendation: We recommend the College implement internal control procedures to ensure that all Student Financial Assistance is paid according to the required disbursement rules. View of Responsible Officials: Management acknowledges the finding and has prepared a corrective action plan. Anticipated Date of Completion: June 30, 2025