Finding Text
Federal Agency:U.S. Department of Education; Office of Federal Student Aid Pass through Entity:Not applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditures: 84.268 ($5,587,282) Award Number: P268K252030 Federal Award Year: July 1, 2024 to June 30, 2025 Questioned Costs: N/A Condition Found: The incorrect effective date of an enrollment status change was reported to the National Student Loan Database System (“NSLDS”) for five of the forty-three students selected for testing. Criteria: NSLDS informs loan servicers of changes in a student’s enrollment status that indicate when the repayments or interest accrual begins and ends. The date a student enrolls, withdraws, graduates, or drops below half-time status should be reported accurately. This information must be reported within sixty days of the status change. Cause: All five of the students withdrew during the semester. NSLDS was originally updated timely with the correct withdrawal date. However, a later update changed the effective date of the withdrawal to the last date of the semester. Possible Asserted Effect: The loan servicers were not aware of the correct deferral, repayment, and interest calculation dates. Repeat Finding: There was not a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Director should update the withdrawal date for the students in question in NSLDS. Procedures should be improved to ensure that the correct withdrawal date is reported in NSLDS. Management Response: Management agrees with the auditors’ finding and their recommendation. The NSLDS withdrawal date was updated for one of the students in question before the audit began on July 7, 2025. The withdrawal dates for the remaining four students were updated in August 2025. The student financial office will review withdrawal dates for students who leave during the semester to ensure the dates are not changed to the last date of the semester.