Finding Text
Condition:
When the Registrar’s Office discovers that a student did not enroll or ceased to be enrolled on at least a half-time basis, the National Student Loan Data System (NSLDS) should be notified of the change in the student’s enrollment status within thirty days of the occurrence, unless the Institution expects to complete its next scheduled filing within sixty days. During our audit, we noted twelve (12) instances in which student status changes were reported more than sixty (60) days after the occurrence.
Context:
A haphazard selection of fourteen (14) students was made from the list of student withdrawals and graduates during the year.
Criteria:
Federal regulations require the Institution to notify the NSLDS of a change in student status (i.e., withdrawn, graduated, enrolled less than half-time, etc.). Unless the Institution expects to complete its next filing within sixty days, the Institution must notify the NSLDS within thirty days if it discovers a student with an outstanding federal loan balance has ceased to be enrolled on at least a half-time basis. [34 CFR 685.309]
Effect:
The lender or guaranty agency is not receiving prompt notification of changes in borrower’s enrollment status. This results in delayed processing of loan repayment periods and leads to poor default management. Late or incorrect updates to the NSLDS may also cause students to receive loans for which they are not eligible, as half-time enrollment is a requirement for Federal Direct Loan (FDL) eligibility.
Cause:
Necessary withdrawal documentation is not consistently processed and forwarded to appropriate departments in a timely manner to ensure reports are accurately filed as scheduled. Overall, there is an inadequate process of verifying the enrollment status of students.
Recommendation:
The Institution should implement procedures to ensure compliance with federal regulations. The Registrar’s Office should obtain a complete understanding of the NSLDS reporting requirements. Improving the accuracy and timeliness of student status filings will aid in the transition of students to loan repayment status.
Views of Responsible Officials and Planned Corrective Actions:
Management agrees with the auditors and has initiated the necessary corrective action plan to mitigate the deficiency from occurring again. The plan is to implement new procedures to ensure the reporting to the NSLDS is done on a timely basis.
Implementation date: Immediately and no later than June 30, 2025.
Persons Responsible: Vice President of Business & Finance, the Registrars Office and the Director of Student Financial Aid.