Finding Text
Audit Finding Reference Number Questioned Costs
2023 – 011 – Aggregate Loan Limits $4,804
Federal Program and Specific Federal Award Identification
CFDA Title and Number
84.268 Federal Direct Student Loans (Direct)
Federal Award Year
June 30, 2023
Federal Agencies
U. S. Department of Education
Pass-Through Entity
Not applicable
Criteria
CFR 685.203 (d) stipulates the aggregate unpaid principal amount of all Direct subsidized loans made to a student but excluding the amount of capitalized interest may not exceed (1) for dependent undergraduate students $31,000, (2) for independent undergraduate student or dependent undergraduate who qualifies for additional eligibility, $57,500 and (3) for graduate or professional students, $138,500.
The total amount of Direct subsidized loans but excluding the amount of capitalized interest may not exceed (1) for a dependent undergraduate student $23,000.
Conditions and Contexts
I noted during my audit three (3) dependent students out of twenty-one (21) tested received direct loans in excess of the aggregate loan limit.
Cause
It appears that ABC did not ensure that the student was eligible to receive the loan proceeds.
Questioned Costs
For purposes of this condition, I have questioned costs totaling $4,804 related to the Direct loan program.
Effect
ABC has not adhered to Title IV regulations regarding the disbursing of loan funds in accordance with the regulations.
Repeat Finding
No.
Recommendation
I recommend that the management of ABC take immediate steps to ensure that students receive their loan funds as required by Title IV regulations.
Management Response
Management concurs with this finding. The College will adhere to its policies, procedures, processes, and federal guidelines as it relates to disbursing loans within aggregate loan limits.
Responsible Administrators: Director of Financial Aid
Effective: Immediately and ongoing.