Finding Text
Federal Assistance Listing Number: 84.268 Program: Student Financial Assistance Cluster Federal Agency Name: U.S. Department of Education Federal Award Year: 2025 Criteria: Per the OMB Compliance supplement, 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. Institutions must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with Direct Loan or TEACH Grants. Condition Found: For 9 of 197 selected samples, student disbursement notices, including all relevant criteria, were not properly provided to students in a timely manner. Cause: The related control was not operating effectively to detect that certain disbursement notices were not properly processing for distribution to students. Effect: Without effective controls in place, disbursement notices may not be fully and completely distributed to students on a timely basis. Questioned Costs: None Sample Statistically Valid: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No Recommendation: We recommend that management revisit implementation of the control related to review of disbursement notice processing to ensure it continues to be actively implemented. Views of Responsible Officials: Management of the University agrees with the findings contained herein.