Finding Text
Significant Deficiency - Student Status Changes
Program: Federal Direct Loan Programs and Federal Pell Grant Program
CFDA Number: 84.268 and 84.063
Federal Agency: U.S. Department of Education
Federal Award Identification Number: P268K241689 and P063P231689
Federal Award Year: May 31, 2024
Criteria: Title IV regulations (34 CFR 685.309(b)) require that upon receipt of an enrollment report from the Secretary, institutions must update all information included in the report and return the report to the Secretary: (i) in the manner and format prescribed by the Secretary; and (ii) within the
timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, an institution must notify the Secretary within 30 days after the date the institution discovers that: (i) a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the institution, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or (ii) a student who is enrolled at the institution and who received a loan under Title IV of the Act has changed his or her permanent address.
Condition/Context: The change in student status for 8 of 25 students tested was not reported to the National Student Loan Data System (NSLDS) within 30 days or included in a response to a roster file within 60 days. In addition, three of those students were not reported until the auditors discovered that the students were not reported during the testing performed. The sample was not statistically valid.
Cause: The University’s procedures for reporting all students was not designed appropriately in order to allow for timely reporting to the NSLDS.
Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by institutions. If an institution does not review, update and verify student enrollment statuses, effective dates of the enrollment status and the anticipated completion dates, then the Title IV student loan records will be inaccurate.
Questioned Costs: Not applicable.
Recommendation: The University should revise its procedures to ensure accurate enrollment information is sent to the NSLDS within the required timeframe.
Management Response: The University agrees with this finding. The University has been actively taking measures with the new student information system, Jenzabar, and procedures have been standardized across the University.