Finding Text
Finding 2024-005-Student Financial Aid Cluster, ALN# 84.268 Compliance Requirement: Eligibility under the Federal Direct Student Loans Program
Criteria: 34 CFR 685.203(d) and (e) specifies the aggregate loan limits for Direct Subsidized Loans and Direct Unsubsidized Loans.
Condition: Students selected were disbursed loans in excess of the aggregate loan limits.
Cause: Clerical error made by the Student Financial Aid Department.
Effect: The University is not in compliance with aggregate loan limits of the federal direct student loans program.
Questioned Costs: $11,495; on February 24, 2025 the University made adjustments to the related student’s account and reimbursed the over award to the Department of Education.
Context: Three out of twenty-five students selected for testing were disbursed federal direct student loans in excess of aggregate limits.
Recommendation: The University should review its process and policies relating to awarding federal direct student loan funds and implement procedures to prevent the over awarding of federal direct student loans in excess of all loan limits under the Federal Direct Student Loans program.
Management Response: The University concurs with this finding.
Corrective Action Plan: See attached management’s corrective action plan.