Finding Text
Condition: The College did not consistently distribute disbursement notices to students and properly communicate the right to cancel within the minimum required timeframe. Criteria: Based on requirements set forth by 34 CFR Section 685.165(a)(1-2), the College is responsible for notifying a student of the amount of expected Title IV funds as well as how and when those funds will be disbursed. Additionally, the College must notify the students of their right to cancel all or a portion of that loan disbursement as well as the timeline they must follow to do so. Cause: We noted that the College did not consistently send the required notices to students. Effect: Disbursement notices, including the right to cancel information, were not consistently sent to students. Context: We tested 25 students and noted that none of those students were sent disbursement notices. Repeat Finding: No Recommendation: We recommend the College implement procedures to ensure that disbursement notices are consistently sent to students.