Finding Text
Finding Number: 2022-001 Compliance Requirement: Eligibility ? Aggregate Loan Limits for Subsidized and Unsubsidized Loans Federal Program Information: United States Department of Education Assistance Listing Number: # 84.268 Assistance Listing Name: Student Financial Assistance Cluster -Federal Direct Student Loans Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Eligibility ? The Seminary shall ensure that the loans disbursed by the Seminary are within the loan limits prescribed in the 2CFR ? 200.91. See below for loan limits for fiscal year ending June 30, 2022. Aggregate Loan Limits for Subsidized and Unsubsidized Loans: Aggregate loan limits for subsidized and unsubsidized loans are: $31,000 for a dependent undergraduate student (except for dependent students whose parents cannot borrow a Federal Parent PLUS (PLUS) loan) (subsidized loan portion may not exceed $23,000 of the aggregate limit amount); $57,500 for an independent student and for a dependent student whose parents cannot borrow a PLUS loan (subsidized loan portion may not exceed $23,000 of the aggregate limit amount); and $138,500 for a graduate or professional student (subsidized portion limited to $65,500). This $138,500 limit includes loans for undergraduate study. Condition: The Seminary is not in compliance with ensuring that certain loans are within loan limits as described above. For 4 out of the 14 loans tested, Federal Direct Loan funds were disbursed in excess of the aggregate subsidized and unsubsidized direct loan limit. The amount over aggregate loan limits totaled $7,601 for the population ($1,147,469) tested. Cause: The Seminary personnel did not follow the Federal requirement for aggregate loan limits. Effect or Potential Effect: Wesley is not in compliance with packaging direct loans within aggregate loan limits. Questioned Costs: Known questioned costs are $7,601. Context: This is a condition based on testing of the Seminary?s compliance with eligibility provisions of the Uniform Guidance. The prevalence of these findings is detailed in the condition section above. The samples were selected using a non-statistical method. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Seminary enhance its procedures to ensure that Federal Direct Loans are awarded/disbursed in accordance with federal guidelines. We also recommend the Seminary to implement additional review of student eligibility determinations. Documented evidence of management?s review of this information should be maintained.