Finding Text
Finding 2023-003: Overaward Federal Direct loans Compliance Requirement: Eligibility (E.) Criteria: A first year student can receive up to $3,500 in subsidized loans and $6,000 in unsubsidized loans in one academic year (34 CFR 685.203). Condition: We tested sixty-four files, fifty-five of which were Federal Direct Loan recipients, and two students were overawarded Federal Direct loans. We consider this finding to be an instance of non-compliance and is a repeat finding shown in Section IV of this report as prior year Finding 2022-004. Cause: The condition was caused by using an incorrect number of credits while calculating the remainder of the programs, which was less than an academic year in length. Effect: The result is the students received ineligible loan proceeds. Question Costs: $1,056 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $1,056 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.