Finding Text
Federal Program - Federal Direct Student Loans Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable Assistance Listing Number - 84.268 Federal Award Number - P268K251776 Federal Award Year - June 30, 2025 Criteria: Prior to making a disbursement, the school must notify students of the amount and type of Title IV funds they are expected to receive, and how and when those disbursements will be made (often referred to as an award letter or college financing plan) (34 CFR 668.165(a)(1)). Additionally, when Direct Loans or TEACH funds are being credited to a student’s account, the institution must notify the student, or parent, in writing of (1) the date and amount of the disbursement; (2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to ED; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement (a minimum of 14 or 30 days depending on confirmation process). The notification requirement for loan funds applies only if the funds are disbursed by EFT payment or master check (34 CFR 668.165). Condition/Context: Of the sample of 25 disbursements in the sample, seven students tested did not receive proper notification of the student's right, or parent's right to cancel any portion of the loans to be distributed. The sample was not a statistically valid sample. Cause: The University's controls surrounding notification of Title IV disbursements did not appropriately ensure the communications sent to students and parents contained all of the required information. Effect: Students were not properly notified of their student’s right, or their parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan payments returned to ED. Questions Costs: Not applicable Recommendation: The University should revise its procedures to ensure that notifications of Title IV fund disbursements contain all the information required by CFR 668.165. Management Response: Management has updated notification processes to ensure appropriate and timely notifications are sent to students.