Finding Text
Need Analysis DEPARTMENT OF EDUCATION
ALN #: 84.268
Federal Award Identification #: 2022-2023 Financial Aid Year
Condition: A student was not appropriately paid subsidized aid based on need.
Criteria: 34 CFR 685.203
Questioned Costs: $-0-
Context: 1 student out of 51 was initially under awarded subsidized loans of $1,592.
Cause: Bethany awarded the student the full eligibility of subsidized and unsubsidized loans. The student declined a portion of the subsidized loans and all of the unsubsidized loans. Bethany’s clean up reports did not identify this student as needing to have paid the full subsidized eligibility first.
Effect: Incorrect allocation of subsidized versus unsubsidized affects the amount and timing of interest the student must repay.
Identification as repeat finding, if applicable: Not applicable
Recommendation: We recommend Bethany add a step in the clean up reports that looks for students with remaining need and acceptance of loans to ensure proper allocation has occurred.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.