Finding Text
U.S. Department of Education Student Financial Aid Cluster 84.038 84.038 does not have a FAIN # on the USASpending.gov website Requirements: (N7) Perkins Condition: The College could not provide support for one (1) outstanding Perkins loan balance of $174. This loan was paid off in 1989; however, the loan servicer did not apply the payment correctly. Criteria: Per 34 CFR 674.48, an institution that contracts any of its duties remains responsible for the duties performed by the contractor. Cause: The College did not review or reconcile the information received from the loan servicer. Effect: The College’s records were incorrect. Repeat Finding: Not a repeat finding Recommendation: RBT suggests that the College continue to liquidate Perkins loans and verify all information received from the loan servicer. Perspective: This issue was not found on the other twenty-six (26) loans tested and does not appear to be systemic. Management’s Response: See corrective action plan.