Finding Text
Finding 2023-004: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency)
Statement of Condition: From our testing sample of twenty-five (25) students, we found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30 days of the disbursement to the student’s account.
Criteria: Federal loans, including PLUS Loans, should be disbursed in accordance with Volume 3 of the Federal Student Aid Handbook. Also, in accordance with 34 CFR 668.165, Notices and Authorizations, an institution must notify the student or parent of the date and amount of disbursement of Federal loans to a student’s ledger account within 30-days of the disbursement.
Effect of Condition: We found nine (9) instances where the student’s parent was not notified of the disbursement of a PLUS Loan within 30-days of the disbursement to the student’s account.
Cause of Condition: The College does not have a policy to notify parents of their students’ PLUS Loan disbursements.
Recommendation: We recommend the College develop a policy and procedure to address this issue.
Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.