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 AL# and Program Expenditure: 84.268 ($857,747) Award Number: P268K247533 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: $-0- Condition Found: The incorrect withdrawal date was reported to the National Student Loan Database System (“NSLDS”) for nine of the fourteen students selected for testing that received Federal Direct Student Loans. 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 within sixty days of the enrollment status change to NSLDS. Cause:The Financial Aid Director used the date students informed the College they were not returning for the next semester as the withdrawal date instead of the last date of attendance for the next semester for seven of the nine students. Additionally, NSLDS was not updated to include Spring 2024 enrollment status changes for the two remaining students associated with the finding. Possible Asserted Effect: The loan servicers 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 Financial Aid Director should update the withdrawal dates in NSLDS. Procedures should b3 improved to ensure that the enrollment status change dates entered into NSLDS are accurate and are based off a student’s last date of attendance. Management Response: Management agrees with the auditors’ finding and their recommendation. The Financial Aid Director updated the enrollment status for the students in question in November 2024. Procedures will be improved to ensure that a student’s enrollment status is updated timely and with the correct date of the change.