Finding Text
Finding: 2025-002 – Special Tests and Provisions – Enrollment Reporting: Significant Deficiency in Internal Control Over Compliance (SEE FINDING 2025-002 FOR TABLE INCLUDED) Criteria: The National Student Loan Data System (NSLDS) is the Department of Education’s centralized database for students’ enrollment information. It is the University’s responsibility to update this information timely and accurately when the enrollment status of a student that has received federal loans changes. The University is ultimately responsible for the timeliness and accuracy of this information even when a third-party servicer is used as an intermediary to report on the University’s behalf. The University currently contracts with a third-party servicer and has elected to receive an enrollment reporting roster file every 30 days from NSLDS. At a minimum, institutions must certify the enrollment status of all students included on the roster file within 15 days of receiving the roster file. If errors are identified, the University has 10 days to resubmit a corrected response. Unless the University expects to complete its next roster file within 60 days, the University must notify the secretary within 30 days, if it discovers that a student who received a loan under Title IV of the Act either did not enroll or ceased to be enrolled on at least a half-time basis (34 CFR section 685.309). Condition/context: From a system generated population of 595 students who received federal aid and either graduated, withdrew, or changed their permanent address during the year ended June 30, 2025, we selected 40 students who received direct loans. We find this sample representative to the population. The enrollment information and withdrawal or graduation date per the University’s records were compared to the information reported to NSLDS to determine if status changes were reported accurately and within the required timeframes. Of the 40 students selected for testing, 14 were not reported to the NSLDS within the required timeframe and 8 had accuracy errors for status reported to the NSLDS. Cause: The challenges with timely and accurate reporting was caused by turnover in the Registrar’s office. Effect or potential effect: The NSLDS database did not include accurate information until the point at which it was corrected. This information is utilized by the Department of Education, the Direct Loan program, lenders, and other institutions to determine in-school status, deferment, and grace periods of student loans. Incorrect information could result in incorrect deferment, grace periods, billing, and repayment of student loans. Recommendation: We recommend that the University strengthen its monitoring and review procedures over enrollment reporting to ensure all student status changes are submitted to NSLDS accurately and within required timeframes. This may include enhancing communication and oversight of the third-party servicer. Repeat finding: Not a repeat finding. Views of responsible officials: Management agrees with the finding. A corrective action plan has been created by management.