Finding Text
Information on the Federal Program: Student Financial Assistance Cluster; SEOG (ALN 84.007),PELL (ALN 84.063), and Direct Loans (ALN 84.268); United States Department of Education; Award Year 2023-24; Compliance requirement – Special Tests and Provisions; Type of Finding: Noncompliance.
Criteria:
1) 34 CFR 668.21 requires that if a student does not begin attendance in a period of enrollment, the institution must return those funds as soon as possible, but no later than 30 days after the date that the institution becomes aware that the student will not or has not begun attendance.
2) 34 CFR 668.61 requires that, if an institution discovers that an applicant received more financial aid than eligible for, the program must be reimbursed by the earlier of the last day of the award year or sixty days after the applicant’s last day of attendance.
3) 34 CFR 668.22(j) requires that an institution return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew.
Condition: Funds were not returned to the respective programs in the required timeframe.
Context:
1) Awards for students not enrolled: 9 out of a population of 12, ranging from 6 to 11 days past the 30-day deadline, amounting to $12,953.
2) Awards for students who withdrew: 5 out of a population of 7; ranging from 58 to 315 days past the 45-day deadline, amounting to $14,067.
3) Over-awards: 12 out of a population of 20; ranging from 46 to 222 days past the year-end/60-day deadline, amounting to $26,680.
Cause: Inadequate training in the Ellucian software system to timely identify students not enrolled, withdrawn, and over-awarded aid.
Effect or Potential Effect: The University could retain use of federal funds longer than the permissible timeframe. Students could receive SFA benefits in error.
Recommendation: Provide training to financial aid personnel on the federal return requirements and on the software system capabilities that identify student status and eligibility amounts.
Responsible Official’s Response and Corrective Action Planned: See corrective action plan.