Finding Text
Federal agency: U.S. Department of Education Federal program title: Student Financial Assistance Cluster Assistance Listing Number: 84.268 ? Federal Direct Student Loans Award Period: September 1, 2021 through August 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.203 specifies the annual and aggregate loan limits the Institutions may not exceed for an academic year of study under the Direct Loan program. Condition: During our testing, we noted one out of the 40 students tested for eligibility were not properly awarded unsubsidized Stafford loans. Questioned Costs: None. Context: Student was awarded a combined subsidized and unsubsidized aggregate amount of $230,500, which is more than the aggregate limits per the student financial handbook of $224,000. Cause: The University's internal controls did not identify the errors for compliance with the criteria mentioned above. Effect: The University awarded $6,500 of unsubsidized Stafford loans for which the student is not eligible. Repeat Finding: No Recommendation: We recommend that the University review their awarding procedures and implement procedures to ensure the Stafford loans are awarded within the annual and aggregate limits. Views of Responsible Officials: Please refer to the attached corrective action plan.