Management acknowledges that there was an error with one over award of subsidized
loan on a student. Student was given $448 (gross) over the aggregate subsidized limit.
The overage was sent back to the Direct lender. Since the student graduated, the $448
was covered by a grant. A survey of all students was completed and no other students
were discovered to have been over their aggregate subsidized limit.
• A student’s aggregate subsidized amount on NSLDS from his FAFSA record was
listed at $17,948, allowing only $5,052 in remaining to reach the $23,000 aggregate
limit on subsidized loan. Student was given $5,500 when it should have been
$5,052. The $448 should have been given as unsubsidized loan. Student had
previous loans from another school. (Powerfaids will catch this error if all of the
historic loans were processed within our database.)
• The student ISIR record did have Comment code 258: “Based upon data provided
by the National Student Loan Data System (NSLDS) and your grade level, we have
determined that you may have received a total amount of undergraduate student
loans that is close to or equal to the loan limits established for the federal loan
programs. Therefore, your eligibility for additional student loans may be limited.“
• The Federal processor usually sends a post-screening after federal aid is disbursed
with warnings of limits: 255, 256, 258. 260 ad 261. This would cause a C-code on
the student record. We did not receive a subsequent ISIR record on said student.
Corrective Action Plan:
Include in the Quality Assurance rules one for the ISIR codes associated with NSLDS overawarding
of loans whether it be annual limits or aggregate limits. We will monitor these
codes regularly during packaging season and subsequent to loan disbursing.