Finding Text
FINDING 2023-002: OVERAWARDED FEDERAL DIRECT SUBSIDIZED LOAN FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM
ALN: 84.268
FEDERAL AWARD YEAR: 2022-2023 Compliance Requirement: Eligibility (E.) Criteria: A third year student can receive up to $5,500 in subsidized loans in one academic year (34 CFR
685.203). Condition: We tested thirty-seven files, thirty-four of which were Federal Direct Loan recipients, and one
student was overawarded a Federal Direct subsidized loan. We consider this finding to be an instance of
non-compliance. Cause: The condition was caused by using an incorrect number of credits while calculating the subsidized. Effect: The result is the student received ineligible loan proceeds. Question Costs: $2,709 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $2,709 to the Department of Education and increase controls over Direct Loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.