Finding Text
Special Tests and Provisions
Student Financial Assistance Cluster of Programs
84.268 Federal Direct Loan Program
U.S. Department of Education
Criteria: 34 CFR 668.22(g)(2) - Institutional charges are tuition, fees, room and board, and other educationally-related expenses assessed by the institution.
Condition: All Return of Title IV calculations for the year were selected for testing (three total returns). One of the returns included the incorrect amount of tuition charges.
Context: This was discovered during the audit testing of Return of Title IV.
Effect: The College should not have returned $81 of direct federal loans.
Cause: The student changed enrollment status before withdrawing and the tuition charge changes were not initially calculated correctly.
Recommendation: We recommend that the College consider augmenting its review process to have the reviewer independently calculate the Return of Title IV funds and compare it to the original calculation.
Views of responsible officials: To make sure this issue does not occur again, the Director of Financial Aid will include a printout of the institutional charges at the time of the withdrawal to show what the amounts were during the R2T4 calculations.