Finding Text
Information on the Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Supplemental Educational Opportunity Grant Program, CFDA 84.007; Federal Work-Study Program, CFDA 84.033; Federal Pell Grant Program, CFDA 84.063; Federal Direct Student Loan Program, CFDA 84.268. Program Year – July 1, 2024 – June 30, 2025 Criteria for Specific Requirement – The Department of Education requires that, for students with a Title IV credit balance, the institution must pay the credit balance to the student or parent borrower (1) within 14 days of the date the balance occurred, or (2) by the end of the loan period or last payment period in the award year for which the funds were awarded, if the institution has obtained a valid authorization to hold the credit balance and is not subject to the reimbursement or heightened cash monitoring payment methods (34 CFR 668.164(h)). Condition –Student account statements did not reflect refund disbursement within timely manner. Questioned Costs – None – nonmonetary finding Context – During our testing, we noted 5 of the 10 disbursements tested paid the credit balance owed to the students after the 14 days period or by the end of the loan period or last payment period in the award year. Cause – In November of 2023, Providence Christian College faced significant institutional turnover. The Financial Aid Director of 15 years left the institution. The appointed successor to the Financial Aid Director then made a decision to leave the institution on December 15th, 2023. This institutional turmoil created upheaval in the department and required the assistance of a consultant. The current provider, Campus Ivy, was not able to provide consulting services and so Providence contracted with FA Solutions to bring stability to the Financial Aid Department. Unfortunately, it seems that some of the processes that were supposed to be maintained were not passed on through the institution. In this specific situation, there was a breakdown in communication and oversight of the refund process. In an attempt to ensure that refunds were paid in a timely manner, the college requests direct deposit information. Sometimes, however, students did not respond in a timely manner and the college did not adequately follow up and/or disburse a check instead. Effect – The College is not in compliance with the Department of Education regulations. Identification as a Repeat Finding – N/A Recommendation – We recommend the College evaluate its procedures and policies around refund disbursement and report accurately and timely.