Finding Text
Need Analysis Material Weakness
DEPARTMENT OF EDUCATION
ALN #: 84.268
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: Students were not initially appropriately awarded federal loans based on need.
Criteria: 34 CFR 685.200(a)
Questioned Costs: $20,719
Context: Out of 39 students tested, 6 students were not awarded aid appropriately based on need analysis. Three students were awarded federal direct subsidized loans in excess of cost of attendance, resulting in a total of $6,728 over awarded to them. Another student was enrolled less than half time, making them eligible for federal direct loans. This resulted an over award of $5,500 in subsidized loans and $6,000 in unsubsidized loans. Additionally, one student declined their loans however they were still disbursed leading to an over award of $2,491 in subsidized loans. Lastly, the remaining student accepted their loans but these were not disbursed, resulting in an under award of $950 subsidized loans and $6,000 unsubsidized loans.
Cause: The College identified that there were scholarships in the student information system that were not set up to count towards cost of attendance and need analysis calculations. There were also oversights by the College for students who accepted or declined their loans.
Effect: Students received federal loans for which they were not eligible.
Identification as repeat finding, if applicable: 2022-007
Recommendation: We recommend the College ensure that all scholarships are marked as estimated financial assistance and an awarding check is done accurately before disbursement is completed for the student.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.