Finding Text
2022?005 Direct Loan Awards Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster CFDA Number: 84.268 ? Federal Direct Student Loans Award Period: July 1, 2021 through June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance (Other Matters) Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.203(a) outlines the maximum subsidized and unsubsidized loan amounts for students based on their dependency status, year of education, and other factors. Per the Code of Federal Regulations, 34 CFR 685.203(j) states that in no case may a loan amount exceed the student?s estimated cost of attendance for the period of enrollment for which the loan is intended less the student?s estimated financial assistance for that period and in the case of Direct Subsidized Loans, the borrower?s expected family contribution for that period. Condition: During our testing it was noted certain loan awards that were made in the wrong amounts. Questioned costs: Known questioned costs totaling $3,250, likely questioned costs totaling $52,546. Context: In our sample of 42 students receiving direct loans, we identified one subsidized loan under-award of $4,535 and one unsubsidized loan over-award of $1,285. Cause: The University?s policies and procedures did not ensure that the loan awards were in the correct amounts. Effect: Improper awarding of direct loans. Repeat Finding: No. Recommendation: We recommend that the college ensures they have appropriate policies and procedures as well as safeguards in place to ensure loan award amounts are properly determined. Views of responsible officials: See Corrective Action Plan prepared by the University.