Finding 1206143 (2025-002)

FINDING 2025-002 – Student Financial Aid – Over-award of Loans Federal Program Information: Student Financial Aid Cluster: Federal Direct Student Loans, ALN #84.268 Criteria: 34 CFR 685.203, Loan Limits Condition: A student was initially packaged for financial aid based on a cost of attendance that included federal student loans. After the initial packaging, the student received an additional scholarship that resulted in an over-award of loans. Context: A sample of 60 students was tested, and one exception was identified. The student’s initial financial aid award package included $4,500 in subsidized loans and $1,649 in unsubsidized loans. In November 2024, the student received an additional $1,000 scholarship, which caused the student to exceed allowable loan limits. Questioned Costs: $1,000 Cause: Workday was set-up for reviews to be completed at the time of initial packaging and upon receipt of subsequent ISIR transactions, however not upon the receipt of additional institutional aid. Effect: Without timely reviews upon the receipt of additional institutional aid, students may receive aid that results in an over-award of federal student financial assistance. Repeat Finding: No Recommendation: We recommend that financial aid packaging reviews be conducted whenever adjustments are made to a student’s cost of attendance, ISIR data, or when additional institutional or external awards are received. Response: The Office of Student Financial Aid will update their procedures to verify the proper aid is reviewed and awarded based on any of the student’s financial aid activity.