Finding Text
Finding 2025-002 - Significant Deficiency in Internal Control Over Compliance - Student Financial Aid Cluster Eligibility - Student Loan Limits Criteria: Aggregate loan limits are $31,000 for dependent undergraduate students and $57,500 for independent undergraduate students, of which only $23,000 may be subsidized. Condition: One undergraduate student had aggregate subsidized loans over the aggregate limit. Cause: This overage was not flagged by the Financial Aid Department. Effect or potential effect: Possible effect is that students may receive more subsidized loans than they are eligible for. Recommendation: Ensure controls are implemented to review aggregate outstanding direct loan balances maintained in the financial aid software are compared to the National Student Loan Data System to ensure applicable loan limits are being followed before processing additional direct loans. Views of responsible officials: See attached.