Finding Text
Criteria
Per the Federal Student Aid Handbook, financial need is determined based on Cost of Attendance, less Expected Family Contribution and other estimated financial aid.
Condition and Context
Of our sample of 60 student files, 1 case was noted where a student received a combination of subsidized and unsubsidized loans that did not agree with the differences between the cost of attendance and the student’s expected family contribution and other financial aid received.
Cause
A student received an additional scholarship that was not allocated to the proper loan type.
Effect
The student’s awards contained incorrect allocations for subsidized and unsubsidized loans.
Questioned Costs
Known differences in subsidized and unsubsidized loans were $1,075, and likely questioned loan awards were $12,212.
Recommendation
We recommend that the College perform a review of student awards with a combination of subsidized and unsubsidized loans and make adjustments to students’ awards where deemed necessary. We also recommend that the College correct the loan packages for such student identified and conduct the proper loan change process for the proper allocation of loan types.
Views of Responsible Officials and Corrective Action Plan
The College has made the recommended adjustments. The College has implemented procedures to assist in ensuring that student awards are reviewed and proper adjustments between loan types are made, when determined necessary.