Finding Text
Program: Federal Direct Student Loans
CFDA Number 84.268
Federal Agency: U.S. Department of Education
Federal Award Identification Number P268K221428
Federal Award Year: June 30, 2023
Repeat of Prior Year Finding 2023-004
Criteria: 34 CFR 685.309(b) states that upon receipt of an enrollment report from the Secretary, a school must update all information included in the report and return the report to the Secretary in the manner and format prescribed by the Secretary and within the timeframe prescribed by the Secretary. Unless 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 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.
Condition: For 2 students tested, the incorrect enrollment status was reported to the National Student Loan Data System (NSLDS). For 2 students tested, the enrollment status that was reported to NSLDS did not match the University’s records. For 3 students tested, the change of enrollment status was not reported within the 60-day requirement. For 2 students tested, the enrollment status was not updated during the fiscal year 2024.
Question Costs: Not applicable.
Context: Noncompliance with federal regulations was noted for 9 of the 40 students who were tested. 5 of the students did not have their change in enrollment status reported to NSLDS within 60 days and 4 students did not show the correct change of status, and thus also did not have their change in enrollment status reported timely to NSLDS. A total of 650 students who were issued Federal Direct Student Loans separated from the University or had a change in enrollment status during fiscal year 2024. The sample was not considered statistically valid.
Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by the schools. If an institution does not review, update, and verify student enrollment statuses, effective dates of the enrollment status, and other information, then the Title IV student loan records will be inaccurate, which impacts student loan repayments.
Cause: It does not appear that there are proper processes in place surrounding enrollment reporting in order to verify that the correct dates, enrollment statuses, or other information are reported to NSLDS within the required timeframes.
Recommendation: It is recommended that policies and procedures are put in place to verify that the correct effective dates and status changes are reported to NSLDS within the required time frames. This could include a review of withdrawal or graduation dates compared to the effective dates reported to NSLDS to make sure they are accurate.