Finding Text
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not Applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditure: 84.268 ($528,346) Award Number: P268K241726 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: N/A Condition Found: The bi-monthly National Student Loan Database System (“NSLDS”) Enrollment Reporting Summary Reports were not updated and returned to NSLDS during the year ended June 30, 2024. Therefore, student enrollment status changes were not reported timely to NSLDS. Criteria: NSLDS informs loan servicers of changes in a student’s enrollment status that indicate when the repayments or interest accrual begins and ends. The date a student enrolls, withdraws, graduates, or drops below half-time status should be reported accurately. The University is required to report the change in a student’s enrollment status to NSLDS within sixty days of the change. Cause: The former Financial Aid Director resigned in August 2023. NSLDS was updated on August 2, 2023 before the Financial Aid Director left the University. The Business Office took over several financial aid duties. The Business Office thought the third-party financial aid administrator was responsible for updating NSLDS. However, updating NSLDS was the responsibility of the University. Possible Asserted Effect: The loan services were not aware of the correct deferral, repayment, and interest calculation dates. Repeat Finding: There was not a similar finding in the previous year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The newly hired Financial Aid Director and business office staff should review and update the enrollment status, as necessary, for all students attending the University and receiving financial aid. The contract with the third-party administrator should be reviewed so the University understands which tasks they are responsible to complete. Management Response: Management agrees with the auditors’ finding and their recommendation. The Director of Financial Aid or business office staff will update the enrollment status for all students who obtained Federal Direct Student Loans from the University. The University will review its contract with their third-party financial aid administrator. The University will update their policies and procedures as needed.