Finding Text
Condition: During our audit, we noted that for certain students selected for testing, there was no clear indication as to whether Federal Direct Student Loan ("FDSL") funds had been disbursed to the students within an acceptable period of time, or that documentation required prior to loan disbursement had been obtained. We also noted that for certain students, there was no documentation of the amount of loan funds dibursed. Criteria: Institutions are required to retain repayment records, including cancellation and deferment requests for at least three years from the date on which a loan is assigned to the secretary, cancelled, or repaid. An institution is required to retain disbursement and electronic authentication and signature records for each laon made using a Master Promissory Note for at least three years from the date the loan is cancelled, repaid, or otherwise satisfied. Cause: Adminstrative oversight and lack of staff completion. Effect: The Univeristy is not in compliance with FDSL reporting requirements. Failure to promptly report accurate and timely changes in disbursement staus for FDSLs may adversely impact student recipients. Recommendations: We recommend that the University implement procedures to ensure FDSLs are awarded/disbursed in accordance with federal guidelines. Views of Responsible Officials and Planned Corrective Actions: The financial aid department has developed a Direct Loan workflow process in accordance with federal guidelines. Utilizing Colleague's software, the finanial aid office can now accurately assess students' aid eligiility to ensure they are appropriately awarded. Colleague has Award Eligibility Cirteria (AEC) rules invoked at transmittal to determine if the student is eligible to receive loan funds.