Finding 509374 (2024-001)

Inaccurate Packaging of Federal Direct Loans (FDL) DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2023-2024 Award Year Condition: Students were not accurately packaged subsidized loans based on the students’ need analysis. Criteria: 34 CFR 685.301 Questioned Costs: $3,500 Context: 1 out of 60 students tested was not accurately packaged subsidized loans based on the student’s need analysis due to an adjustment in the student’s outside scholarships after the initial award packaging. The student was eligible for $3,500 in subsidized loans that was disbursed as additional unsubsidized loans. This was corrected during the audit. Cause: The University did not reevaluate the students’ need for subsidized loans after adjustments were made to the students’ packaging. Effect: Students received additional ineligible unsubsidized loans and were not awarded up to their full subsidized loan eligibility. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the financial aid department run a report periodically during each semester to determine that students are being awarded up to the max subsidized loan eligibility prior to being awarded unsubsidized loans. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.