Finding Text
Information on the Federal Program: Federal Direct Student Loan Program, AL Number 84.268 (Student Financial Aid Cluster) – U.S. Department of Education
Criteria: Per 34 CRF 668.22(c)(1)(vi), if a student takes a leave of absence that does not meet the requirements of 34 CRF 668.22(d), the date that the student began the leave of absence is their withdrawal date.
Per 34 CFR 685.309(b)(2)(i), unless the school expects to submit its next enrollment report within 60 days, the school must notify the lender or the guaranty agency within 30 days if it discovers that a student who received a loan either did not enroll or ceased to be enrolled on at least a half-time basis.
Condition: For all students who went on a Regular Academic Hiatus, 202 students in total, withdrawal status was reported as the day the student officially withdrew, instead of the date the student began the Regular Academic Hiatus. A Regular Academic Hiatus is a leave of absence that does not meet the requirements of 34 CRF 668.22(d).
Questioned Cost: $-0-
Cause: The University did not have the proper internal controls in place to ensure that the students who took a Regular Academic Hiatus were reported as withdrawn to National Loan Student Database System.
Effect: The enrollment status for students who took a Regular Academic Hiatus were incorrect during the time of their hiatus.
Recommendation: We recommend the University update their reporting procedures for students who take a Regular Academic Hiatus to ensure that accurate withdrawal dates are properly reported to the National Loan Student Database System.
Views of responsible officials and planned corrective actions: The University concurs with this finding and will implement oversight procedures to ensure the enrollment status for students taking a Regular Academic Hiatus are reported timely to the National Loan Student Database System.