Finding 401412 (2023-003)

Timeliness of Enrollment Reporting Cluster: Student Financial Assistance Federal Agency: Department of Education Assistance Listing Title and Number: 84.038 - Federal Direct Loan Program, Award Name: Not applicable Award Identifying Number: Not applicable Award Year: Fiscal year 2023 Pass-through Entity: Not applicable Criteria: In accordance with 34 CFR 690.83(b)(2) and 685.309, schools are required to report the enrollment status of students who received Federal Pell Grants and/or Federal Direct Loans to the National Student Loan Data System (“NSLDS”). Enrollment information, inclusive of campus level and program level data, must be reviewed, updated, and validated by the institution in a timely manner as it is used to determine the borrower’s eligibility for in-school status, deferment, interest subsidy and grace period. Specific to the Federal Direct Loan program, enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported within 60 days of the change. Condition: We reviewed a sample of 25 students enrolled at the University who received either Federal Pell Grants and/or Federal Direct Loans and had a change in enrollment between March 1, 2023 and September 30, 2023 of the fiscal year. Through our enrollment reporting testing, we identified one student in which the status change was reported 274 days after the effective date of the change in enrollment status, which is greater than the 60-day requirement. Questioned Costs: None Cause: Although the University has processes and controls to timely report student enrollment changes to the National Student Clearinghouse (“NSC”) and to the NSLDS, these controls did not operate as designed during the period to meet the 60-day reporting requirement. The University did not timely review the unapplied records reported by NSC for the University’s review so that records could be reported to NSLDS. Effect: The effective administration of Federal Direct Loans could be impacted when changes in students’ enrollment are not reported accurately and/or timely. The timeliness of reporting enrollment information is important, as a student’s enrollment status determines eligibility for in-school status, deferment, grace period and repayments, as well as the government’s payment of interest subsidies. Recommendation: We recommend the University enhance its controls and revise its procedures to ensure that status changes are reported timely to the NSLDS.