Finding Text
Federal Program Information: Federal Perkins Loan Program (ALN 84.038)
Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions – Perkins Loan Recordkeeping and Record Retention: In accordance with 34 CFR 674.19(e), Institutions must retain original or true and exact copies of promissory and master promissory notes (MPN), repayment records, and cancellation and deferment requests for each Perkins loan (including Defense and National Direct Student Loans) made until the loans are satisfied.
Condition: The College was unable to provide certain borrowers’ records.
Cause: Administrative oversight.
Effect: The College is not in compliance with the Perkins Loan recordkeeping and record retention requirements.
Questioned Costs: None.
Context: For 3 of 40 borrowers tested, the College was unable to provide a copy of the borrower’s original paper promissory note or original paper MPN and repayment schedule.
Repeat Finding: This is a repeat of prior year Finding 2021-006.
Recommendation: We recommend the College enhance its policies and procedures to ensure that all Perkins Loan records are retained for the prescribed periods.
Views of Responsible Officials: The loans have been purchased by Birmingham-Southern College.