Finding 1165195 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-17
Audit: 375472
Organization: Southern Wesleyan University (SC)
Auditor: CAPINCROUSE LLC

AI Summary

  • Core Issue: The University inaccurately reported enrollment statuses for 5 out of 60 graduate students to NSLDS, affecting loan repayment statuses.
  • Impacted Requirements: Compliance with 34 CFR 685.309 regarding accurate enrollment reporting is not being met.
  • Recommended Follow-Up: Collaborate between financial aid and registrar teams to improve data accuracy, and conduct regular spot checks on NSLDS reports.

Finding Text

2025-001 Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loan Program Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The University did not always report enrollment information to the National Student Loan Data System (NSLDS) in an accurate manner for graduate students. Criteria: 34 CFR 685.309 Questioned Costs: $0 Context: Out of 60 students tested, 5 graduate students had incorrect enrollment statuses reported to NSLDS. 3 doctoral program students were reported as being less than half-time rather than full-time. Even though the students were enrolled and attending full-time, reporting the students as less than half-time triggered the students into repayment for their loans. 2 graduate students were reported as being three-quarter time rather than full-time. Being reported at three-quarter time did not impact the students’ repayment for their loans. These statuses were updated and corrected during the audit. This finding is isolated to the graduate student population. Cause: Transition in financial aid staff. Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the student financial aid team and registrar work together, potentially including information technology, to ensure that accurate fields are captured from the system for NSLDS enrollment reporting. Additionally, we recommend that the registrar completes spot checks of NSLDS enrollment statuses throughout the year. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Planned Corrective Action: Will need to meet with academic records and determine if Doctorate program Dissertation 1-hour course can be coded and reported as full time to NSLDS Person Responsible for Corrective Action Plan: Academic Records / Regina Bolding Harned - Registrar / Allison Sullivan – Director of Financial Aid Anticipated Date of Completion: 12/5/25

Categories

Reporting Student Financial Aid Eligibility Significant Deficiency Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $5.50M
84.063 FEDERAL PELL GRANT PROGRAM $2.19M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $670,820
84.027 SPECIAL EDUCATION GRANTS TO STATES $601,774
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $132,413
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $96,492
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $79,212
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $67,200
84.033 FEDERAL WORK-STUDY PROGRAM $60,784