Finding Text
Need Analysis Significant Deficiency
DEPARTMENT OF EDUCATION
ALN #: 84.268
Federal Award Identification #: 2023-2024 Award Year
Condition: Errors in need analysis for federal financial aid let to inaccurate awarding and disbursing need based federal financial aid.
Criteria: 34 CFR 685.200(a)
Questioned Costs: $7,568
Context: Out of 60 students, 3 students were not awarded aid appropriately based on need analysis. The first student received $3,000 in unsubsidized loans when they had additional subsidized loan eligibility to maximize before taking out unsubsidized loans. The second student was awarded $4,500 in subsidized loans in excess of need that should have been awarded as additional unsubsidized loans. The last student was over-awarded $68 in subsidized loans due to being over the aggregate subsidized loan limit.
Cause: These errors were an oversight by the College.
Effect: Incorrect allocation of subsidized loans versus unsubsidized loans affects the interest amount incurred by the student and could impact future loan eligibility. Additionally, students received subsidized federal aid for which they were not eligible.
Identification as repeat finding, if applicable: Not applicable.
Recommendation: We recommend that the College set up reports in the student information system to periodically check for over or under awarding of need based federal aid. We also recommend that the student information system have notifications when updated ISIRs are received to review need analysis and update awarding as needed.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.