Finding 1204867 (2025-003)

Need Analysis Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loans Federal Award Identification #: 2024-2025 Financial Aid Year Condition: One student was not appropriately awarded subsidized loans based on need. Criteria: 34 CFR 685.203 Questioned Costs: $3,487 Context: Out of 40 students tested, 1 student was not awarded aid appropriately based on need analysis. This student was awarded over the need calculation by $3,487 in subsidized loans. This student was not corrected during the audit process. Cause: There was turnover in staffing during the year. The review process in place to ensure loan amounts awarded matched student eligibility did not capture all items correctly. Effect: Incorrect amounts of subsidized loans were disbursed which affects the amount and timing of interest the student must repay. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the University set up reports in the student information system to periodically check for over or under awarding of need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.