Finding 366872 (2023-001)

Finding – Eligibility – Federal Direct Student Loan Program, Assistance Listing Number 84.268 and Federal Pell Grant Program, Assistance Listing Number 84.063; June 30, 2023 Award Year; U.S. Department of Education Criteria or Specific Requirement The amount of a student’s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year (34 CFR Section 690.62(a)). The annual maximum loan amount an undergraduate student may receive must be prorated when the borrower is enrolled in a program that is shorter than a full academic year; or enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year. (2022 – 2023 Student Financial Aid Bank Book, Volume 3, Chapter 5, 34 CFR 685.203(a),(b),(c)) Condition Of the 40 students selected for eligibility testing, two students were incorrectly awarded student financial assistance; one student was incorrectly under-awarded a Pell Grant and the other student was over-awarded a Direct Loan. This was not a statistically valid sample. Cause For one student, an updated ISIR was issued following the award packaging process and the University did not correct the Pell Grant award following this update. For the other student, the Direct Loan was awarded based on a full year, however, the student graduated part way through the academic year and the loan was not prorated. Effect The students were not awarded an appropriate amount of Federal Student Financial Assistance based on the eligibility criteria. Questioned Costs Known Pell Grant under-award of $6,895 and Direct Loan over-award of $120. Identification as a Repeat Finding This is a repeat finding, see 2022-001. Recommendation The University should implement quality control reports to be generated and reviewed when there is a change in student information to ensure the correct amount of aid is awarded. Views of Responsible Officials and Corrective Actions See corrective action plan.