Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Number: 84.268 – Federal Direct Student Loans
Federal Award Identification Number and Year: N/A
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: July 1, 2023 to June 30, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.203(a) outline the maximum subsidized loan amounts for students based on their dependency status, year of education, and other factors.
Condition: During our testing, we noted 1 instance out of 40 students tested where the subsidized Stafford loan awarded to the student was less than the maximum amount they were eligible for.
Questioned Costs: $103
Context: The student's award package was updated in the Spring which resulted in more need based aid. The $103 was disbursed as unsub loans instead of sub loans.
Cause: The University did not have sufficient processes in place to identify the correct award.
Effect: The student did not receive enough need based aid.
Repeat Finding: Yes
Auditors’ Recommendation: We recommend the University evaluate its procedures and a policy around how changes in status or inputs are handled when packaging and awarding students.
Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.