Finding Text
Need Analysis Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loans Federal Award Identification #: 2024-2025 Financial Aid Year Condition: Students were not initially appropriately awarded federal loans based on need, eligibility, and enrollment level. Criteria: 34 CFR 685.203, 34 CFR 685.301(a)(4)(ii) Questioned Costs: $6,722 Context: Out of 43 students tested, 6 students were not awarded loans appropriately based on need analysis. One student was over awarded $1,000 in subsidized loans based on enrollment level, another exceeded their aggregate loan limits for subsidized loans by $1,312, and the last exceeded their cost of attendance by $4,410 with the awarding of an unsubsidized loan. There were also three students who were under awarded a combined total of $3,000 in subsidized loans and $2,000 in unsubsidized loans as they were under awarded based on their enrollment level. Cause: For students that were under/over awarded based on enrollment level, it was due to the new student information system that was implemented and automated during fiscal year 2024-2025. The triggers that alert the College’s Financial Aid Office to reassess loan awards following updates by the Registrar’s Office to students’ earned credit hours were not initially activated. These triggers are now enabled, and notifications are being appropriately received. The other students were oversights by the College. Effect: Students received federal loans for which they were not eligible, and students were not awarded federal loans according to eligibility. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the College continue to complete spot checks to ensure that proper notifications are enabled in the student information system, and that the student award package be reviewed before releasing it for acceptance by the student. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.