Finding Text
Student Financial Assistant Cluster ALN 84.268 Federal Direct Student Loan Programs U.S. Department of Education Program Year 2021 ? 2022 Criteria or Specific Requirement ? Special Tests and Provisions: Disbursements to or on Behalf of Students, 34 CFR 668.165 Condition ? Eleven students with direct loans were not notified of the date and amount of disbursement and that they have the right to cancel all or a portion of the disbursement. Questioned Costs ? None Context ? Out of the population of 1,527 students who received federal direct student loans, a sample of 27 students was selected for testing. Eleven of the tested students were not correctly notified of the date and disbursement of their direct loans or of the fact that they have the right to cancel all or a portion of the disbursement. Our sample was not and was not intended to be a statically valid sample. Effect ? Eleven students did not receive notifications regarding their direct loans, as required. Cause ? An algorithm in the University?s system was not updated, causing direct loan notifications not to occur for any student not receiving any aid other than direct loans. Identification as a Repeat Finding ? N/A Recommendation ? The University should review its procedures for ensuring that algorithms established in the system are reviewed and updated to ensure all notifications are occurring in compliance with Department of Education guidelines. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and will ensure that all algorithms are reviewed and updated in the future.