Finding 1584 (2023-002)

Need Analysis DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2022-2023 Financial Aid Year Condition: Students were not appropriately awarded subsidized loans based on need. Criteria: 34 CFR 685.203, 34 CFR 685.301 Questioned Costs: $0 Context: Out of 60 students tested, 3 students were not awarded aid appropriately based on need analysis. One student received unsubsidized loans when they were eligible for $1,006 more in subsidized loans. One student had been offered maximum subsidized and unsubsidized loans and only accepted $1,000 in unsubsidized loans. Instead of allocating the student to subsidized loans, the University disbursed them as unsubsidized loans. One student was awarded subsidized loans in excess of need by $435 because of $1,000 of unsubsidized loans being transferred to subsidized loans late in the Spring term to award the student to 3rd-year level maximum eligibility. These students’ aid was reallocated during the audit process. Cause: This was an oversight by the University. Effect: Incorrect allocation of subsidized versus unsubsidized, which affects the amount and timing of interest the student must repay. Identification as repeat finding, if applicable: N/A 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.