Finding Text
2023-002 National Student Loan Data System (NSLDS) Enrollment Reporting
Type of Finding – Significant Deficiency and Noncompliance
Student Financial Assistance Cluster: Federal Direct Loans – CFDA 84.268
Criteria: 34 CFR 690.83(b)(2) and 34 CFR 685.309 provide regulations to institutions for the
accurate and timely reporting of student enrollment information. Institutions must
review, update, and verify student enrollment statuses, program information, and
effective dates. The institution should have sufficient internal controls over program
compliance to report information accurately and timely.
Condition: Two students that withdrew from McPherson College were found to have status
change effective dates reported to the NSLDS that were not compliant with enrollment
reporting guidelines.
Questioned Costs: None identified.Context: Out of a sample of 50 students with status changes, two students that withdrew were
identified as having incorrect dates reported to the NSLDS.
Effect: Dates reported to the Department of Education impact when students enter repayment
on outstanding student loans. Incorrect dates reported to the Department of Education
could cause a student to enter repayment at a time not in accordance with related
regulations.
Cause: The dates reported to the NSDLS included either the first or last day of fall or spring
classes versus a withdraw date based on an interterm class. The internal controls over
review of the effective dates reported to the NSLDS were not effective at preventing or
detecting and correcting the reported effective dates.
Identification as a
Repeat Finding: This is a repeat finding of finding 2022-002 that was reported for the year ending June
30, 2022.
Recommendation: We recommend the individual responsible for identifying effective status change dates
for withdrawing students receive training on the requirements. We also recommend
that the individual reviewing information reported to the NSLDS perform their review at
a level of precision necessary to detect and correct dates reported inconsistent with
related regulations.
Views of
Responsible
Officials: McPherson College agrees with the finding and the recommendations.