Finding Text
Criteria: 34 CFR 685.203 states, "A student may not receive a Federal Direct Subsidized Loan amount that exceeds the student’s estimated cost of attendance for the period of enrollment less the borrower’s expected family contribution and estimated financial assistance for that period.”
Condition: The College did not properly disburse Direct Subsidized loans for 2 out of 40 students (5%).
We consider this condition to be an instance of noncompliance to the Eligibility compliance requirement and is not a repeated finding. Statistical sampling was not used in making sample selections.
Questioned Costs: $1,500
Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid.
Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Subsidized Direct Loans.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.