Finding Text
FINDING 2024-004 – Title IV Aid Not Returned
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 Expenditures: 84.268 ($709,913)
Award Number: P268K243315
Federal Award Year: July 1, 2023 to June 30, 2024
Questioned Costs: $3,711
Condition Found:
A student requested that the University return $3,711 of unsubsidized Federal Direct Loan funds to the lender in December 2023. The University has yet to return the funds.
Criteria:
The University is required to notify students of the process to return or deny a loan disbursement at the time the disbursement is made. The student in question followed the procedures within the required timeframe.
Cause:
All of the steps were not completed in the return process. While COD no longer shows the loan disbursement as outstanding, NSLDS still lists the disbursement as outstanding with a December 2023 disbursement date, and the funds were never removed from the student’s account.
Possible Asserted Effect:
$3,711 of unsubsidized Federal Direct Loan funds should be returned.
Repeat Finding:
There was not a similar finding in the prior year.
Statistical Sampling:
The sample was not intended to be, and was not, a statistically valid sample.
Recommendation:
We recommend the University work with the third-party administrator to return the $3,711 as soon as possible. Procedures should be improved to ensure that funds are being returned timely.
Management Response:
The Interim Financial Aid Director will work with the third-party administrator to return the $3,711. The student’s account and NSLDS will be updated. Procedures will be improved to ensure that funds are returned timely.