Corrective action was taken and implemented July 10, 2024. We implemented our financial aid disbursement procedure to ensure that all students and parents (for PLUS loans) receive a formal
notification that includes:
• The date and amount of each disbursement.
• A clear statement outlining the student's or parent's right to cancel all or part of the direct loan disbursement.
• Detailed instructions on the procedure and the timeline (14 days) for requesting cancellation.
We developed standardized communication templates for disbursement notifications, which will automatically generate upon each loan disbursement. These templates will include all required information and will be distributed via email communication.
Our financial aid management system will automatically send out notifications to students and parents within 30 days of the disbursement, ensuring compliance with federal regulations. Notifications will be sent electronically and stored in the system for record-keeping and audit purposes.
We provided training for the Financial Aid staff on the updated procedures and federal regulations related to disbursement notifications and the right to cancel. A procedure manual and training was
provided including how to document and handle cancellation requests promptly.
A regular internal review process will be implemented to monitor compliance with disbursement notification requirements. A Financial Aid manager will review a random sample of notifications each semester to ensure that all required information is being communicated and documented appropriately.
Timing for Implementation: Implemented July 10, 2024, and an ongoing process. Documentation was provided to auditors July 10, 2024, including Procedure Manual, Notification Sample, Batch of Notifications to students with loan disbursements.