Finding Text
Finding 2025-004 Program Affected Assistance Listing - 84.268 U.S. Department of Education - Direct Award Student Financial Aid Cluster Award Year July 1, 2024 through June 30, 2025 Criteria Per 34 CFR 668.165(a)(6), students that receive a direct loan disbursement, must receive notification of the right to cancel their loan. This notification must be sent no earlier than 30 days before or no later than 30 days after the student account is credited. Condition and Context During testing of Direct Loan disbursements, we noted at Kennebec Valley Community College (KVCC) and YCCC, the students that received Direct Loans were not notified within 30 days of the funds being credited to their student account. This was due to the conversion from PowerFAIDS to Anthology SIS as the financial aid office wanted to be sure the correct disbursement was made resulting in an oversight on the notification email not being sent out timely. During our testing, we did not identify any exceptions related to the calculation of need for student aid related to any of the students at KVCC and YCCC selected for testing. Based on discussion with management, it is expected all students at KVCC and YCCC with Direct Loan disbursements were not notified of their right to cancel their loan. Cause and Effect The conditions identified were caused by the transition to a new SIS that occurred during the year resulting in missed notifications to students on the right to cancel their Direct Loans. Questioned Costs None noted. Recommendation We recommend the System implement a process in which all Direct Loan disbursements receive notification within the 30-day window. Identification as a Repeat Finding, if Applicable Not applicable. Views of Responsible Officials and Planned Corrective Action Management agrees with the finding. See attached Corrective Action Plan.