Finding Text
2025-002 – U.S. Department of Education Student Financial Assistance Cluster – Special Testsand Provisions: Enrollment Reporting (Repeat Finding) Criteria: Institutions are required to report enrollment information under the Pell grant and the Directand FFEL loan programs via the NSLDS (National Student Loan Data System) (0MB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309; Perkins 34 CFR 674.19(f)). Condition and Context: The College failed to accurately and timely report student status changes to NSLDS for 9 students out of 10 students tested. Known Questioned Costs: None, reporting requirement not met. Cause: Due to turnover at the College, including in the office of the registrar and in the financial aid department, the College did not follow the standardized process for updating enrollment information promptly and lacked effective communication between the registrar and financial aid offices regarding student status changes. Effect: The College was out of compliance with the requirement enrollment reporting of student status changes. Inaccurate enrollment reporting can lead to improper loan servicing, incorrect disbursements, and potential issues for students regarding their loan repayment status. This finding raises compliance concerns and could result in financial liabilities for the institution. Recommendation: The College should implement a robust system for tracking and reporting enrollment changes, including regular training for staff involved in the enrollment process. Additionally, a routine audit of reported data should be conducted to ensure accuracy and compliance with federal regulations.