Finding Text
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan