Finding Text
Federal Program – Student Financial Assistance Cluster – Assistance Listing Number 84.268, Federal Direct Student Loans – U.S. Department of Education Program Year 2024–2025 Criteria or Specific Requirement – Eligibility – 34 CFR §668.34 Condition – One student who received a Direct Unsubsidized Loan for the Spring 2025 semester did not meet the maximum timeframe element of the satisfactory academic progress requirements as of the beginning of that semester. Questioned Costs – $2,919 Context – Out of a population of 2,868 students who received Pell and/or Direct Loans in fiscal year 2025, 25 students were selected for testing. Of the 25 students tested, one was identified as not meeting the maximum timeframe satisfactory academic progress requirement and, therefore, was ineligible to receive the funding received for the Spring 2025 term. Our sample was not, and was not intended to be, statistically valid. Effect – The University disbursed $2,919 of Title IV funds to a student who was not eligible for this funding. Cause – The University did not have appropriate controls in place to ensure satisfactory academic progress requirements were properly met prior to disbursing funding to students. Identification as a Repeat Finding – N/A Recommendation – The University should ensure the design and appropriate operating effectiveness of controls surrounding the review of satisfactory academic progress prior to the disbursement of funds to students. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding. See attached corrective action plan.