Finding Text
Student Financial Assistance Cluster
Federal Pell Grants, ALN 84.063
Federal Direct Student Loans, ALN 84.268
U.S. Department of Education Program Year 2023 - 2024
Criteria or Specific Requirement - Special Tests: Disbursements to or on Behalf of Students 34 CFR 668.165
Condition - Students receiving direct loans did not receive notification in writing of (1) the anticipated date and amount of the disbursement; (2) the student's or parent's right to cancel all or a portion of the loan; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan.
Cause - The student information system, Colleague, was not configured to notify students of (1) the anticipated date and amount of the disbursement; (2) the student's or parent's right to cancel all or a portion of the loan; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan.
Effect or potential effect - The University did not make the notification to the student or parent the earlier of 30 days before, and no later than 30 days after, crediting the student's account at the University with Federal Direct Student Loans.
Questioned costs - None
Context - Out of a population of 1,963 students who received Student Financial Assistance, a sample of 25 students were selected for testing. Our sample was not, and was not intended to be statistically valid. For 19 of the students tested who received Federal Direct Student Loans, the students did not receive notification in writing of (1) the anticipated date and amount of the disbursement; (2) the student's or parent's right to cancel all or a portion of the loan; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan.
Identification as a repeat finding - N/A
Recommendation - The University's Office of Financial Aid should establish a process to notify students or parents in writing of (1) the anticipated date and amount of the disbursement; (2) the student's or parent's right to cancel all or a portion of the loan; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan.