Finding Text
Information on the Federal Program: PELL (ALN 84.063), and Direct Loans (ALN 84.268); United States Department of Education; Award Year 2024-25; Compliance requirement – Special Tests and Provisions; Type of Finding: Noncompliance. Criteria: 1) 34 CFR 668.21 requires that if a student does not begin attendance in a period of enrollment, the institution must return those funds as soon as possible, but no later than 30 days after the date that the institution becomes aware that the student will not or has not begun attendance. 2) 34 CFR 668.61 requires that, if an institution discovers that an applicant received more financial aid than eligible for, the program must be reimbursed by the earlier of the last day of the award year or sixty days after the applicant’s last day of attendance. 3) 34 CFR 668.22(j) requires that an institution return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew. 4) United States Department of Education FSA 2024-2025 Handbook and 34 CFR 685.202(c)(4)(i) require that schools should not return Direct Loan funds on a borrower’s behalf if more than 120 days have passed since the disbursement date. Condition: Funds were not returned to the respective programs in the required timeframe. This is a continuation of finding 2024-002. Context: Findings were noted in the following categories, out of a total PELL and Direct Loan refund population of 57 totaling $114,401: 1) Three awards for students not enrolled, ranging from 13 to 70 days past the 30-day deadline, $4,141 total. 2) One award for an ineligible student, 36 days past the last day of award year deadline, $489. 3) One borrower-requested refund, 72 days past the120-day deadline, $1,732. Cause: Inadequate training in the Ellucian software system to timely identify students not enrolled, withdrawn, and over-awarded aid. Effect or Potential Effect: The University could retain use of federal funds longer than the permissible timeframe. Students could receive SFA benefits in error. Recommendation: Provide training to financial aid personnel on the federal return requirements and on the software system capabilities that identify student status and eligibility amounts. Responsible Official’s Response and Corrective Action Planned: See corrective action plan.