Finding Text
Criteria: 34 CFR 668.22 requires that when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with Federal regulations and return the unearned portion of the grant or loan funds to the Title IV programs as soon as possible but no later than 45 days after the withdrawal date.
Condition/Context: In a sample of 7 students that withdrew during the fiscal year, the University calculated the required return to Title IV for one student incorrectly by using the incorrect number of days for the base.
The sample was not a statistically valid sample.
Cause: The University incorrectly used the wrong number of days as a base for the spring semester to use in the return of Title IV funds calculation.
Effect: The return of Title IV (R2T4) funds calculations were incorrect for the Spring 2023 term requiring the student to return more than required.
Questioned costs: The error resulted in $43 more in Direct Student Loan funds returned than required.
Recommendation: It is recommended that the University review interpretations, policies and procedures in place for withdrawals and R2T4 calculations to ensure that correct dates and institutional charges are being used.
Management Response: The Financial Aid office reviewed documentation to determine the total number of students impacted by this finding. No corrections to other students are required. This finding was reviewed and discussed with Financial Aid staff, including training, to review correct calculations for future semester/term calendar days. The University also reviewed days uses for 2023-2024 calendar to ensure they are in line with regulations.