During compliance testing, the Auditor identified—and we concur—that a student received a Subsidized Direct Loan that resulted in an over award. Upon further internal review, we determined that the student was an in-county, dependent student whose Parent PLUS Loan had been denied. In accordance with federal regulations, a PLUS denial provides eligibility for additional Federal Direct Unsubsidized Loan funds. When the loan was processed, the over award occurred when the Independent Student Cost of Attendance (COA) was applied for one semester instead of the Dependent Student COA. Using the incorrect COA budget resulted in awarding the student excess Subsidized Loan eligibility. Corrective Action: 1. System Controls Implemented: A request was submitted to our ITS Department to develop a daily validation report identifying all students who have the “additional unsubsidized” flag in the Colleague system. The report includes the COA used in determining eligibility. By reviewing this report daily, any inaccuracies in cost of attendance for this student population can be identified and corrected prior to origination and disbursement. 2. Verification of Scope: The report was run for the 2024–2025 academic year. The student described above was the only case identified, confirming that this was an isolated error. 3. Correction to the Award: The student’s Direct Loans were reallocated to remain compliant with federal regulations and the student was notified of the loan change. 4. Staff Training and Communication: A meeting was held with all loan processors to review this finding and reinforce that the Dependent Student COA must be used when processing additional unsubsidized eligibility for dependent students whose parents are denied a PLUS Loan. Ongoing Compliance The Financial Aid Office will maintain the daily validation report as an internal control measure to prevent recurrence. Staff will continue to be trained and monitored for adherence to federal and institutional policy regarding loan eligibility and COA assignments.