Finding 576659 (2023-002)

Federal Program Information: Federal Direct Student Loan Program (ALN#: 84.268) Criteria or Specific Requirement: Special Tests and Provisions – Disbursements to or on Behalf of Students – Federal Student Aid (“FSA”) Credit Balances - Where disbursements created a credit balance in the student account and the student or parent did not provide an authorization for the institution to retain funds, the institution must provide the credit balance amount to the student within 14 days of the date the balance was created (34 CFR 668.164(h)). Condition: Instance was identified where the University did not issue a refund within the required timeframe. Cause: Administrative oversight with respect to disbursement to or on behalf of students. Effect or Potential Effect: The University was not in compliance with disbursement to or on behalf of students. Questioned Costs: None. Context: For 1 of 10 students selected for testing, the University did not issue the refund within the required 14 days. Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend the University complete a timely review of credit balances in order to issue all refunds with respect to FSA credit balances within the required timeframe. Views of Responsible Officials: This instance was an administrative error. Measures are in place to process refunds on a weekly basis.