Finding Text
Finding 2022-004: Return of Title IV Funds (R2T4) Calculation Information on the Federal Program: Federal Direct Student Loan Program (AL Number 84.268) – U.S. Department of Education Criteria or specific requirement: 34 CFR 668.22(f)(2)(i) – The percentage of title IV grant or loan assistance that has been earned by the student is equal to the percentage of the period of enrollment that the student completed as of the student's withdrawal date. This is determined by dividing the total number of calendar days in the period of enrollment into the number of calendar days completed in that period as of the student's withdrawal date. The total number of calendar days in a period of enrollment includes all days within the period that the student was scheduled to complete, except that scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in a period of enrollment and the number of calendar days completed in that period. Federal Student Aid Handbook Volume 5, Chapter 2 – A scheduled break begins the day after the last classes were held and ends the day before the next classes were held. Condition: One student required a return of unearned aid following a withdrawal. The percentage earned was calculated incorrectly because the excluded scheduled break was not determined according to the above guidance. Questioned Cost: $73.66 Cause: The Federal Student Aid Handbook was not followed when the R2T4 calculation was made regarding the excluded scheduled break. Effect: The incorrect determination of the scheduled break resulted in the calculation of a lower percentage earned, and therefore a larger amount of refund due than was necessary. Recommendation: We recommend that the Seminary establish controls to ensure that Federal Student Aid guidance is being appropriately followed in the determination of title IV refunds. Views of responsible officials and planned corrective actions: Management concurs with the above finding. The Financial Aid Director, in conjunction with the Registrar, will review all student withdrawals to ensure that R2T 4 calculations are completed on time. At the midpoint of the semester and other review will be done to ensure that all calculations were completed and on time.