Finding Text
Need Analysis Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Loans Federal Award Identification #: 2023-2024 Financial Aid Year Condition: Students were not initially appropriately awarded direct federal loans. Criteria: 34 CFR 685.200(a) Questioned Costs: $16,909 Context: Out of 22 students tested, 7 students were not awarded aid appropriately based on need analysis. Four students were awarded federal direct loans in excess of cost of attendance, resulting in a total of $7,084 over awarded to them. Three additional students and one student who was exceeding cost of attendance received subsidized loans in excess of financial need, resulting in a total of $9,825 over awarded to them. Cause: The College did not review flags in the information system before disbursing federal financial aid. Effect: Students received federal loans for which they were not eligible. Identification as repeat finding, if applicable: 2022-007, 2023-008 Recommendation: We recommend the College ensure that all flags in the student information system are cleared before disbursing federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.