Finding Text
Finding 2023-001
Programs Affected
Under the Student Financial Assistance Cluster – Award Year July 1, 2022 – June 30, 2023:
AL 84.268 – U.S. Department of Education – Federal Direct Student Loans
Criteria
Per 34 Code of Federal Regulations (CFR) 668.165, the institution must notify the student in writing of the student’s right to cancel all or a portion of a loan and to have the loan proceeds returned to the holder, no later than 30 days after crediting the student’s account with the Federal Direct Student Loan.
Condition
Based on a nonstatistical sample of 25 selections from the Federal Direct Student Loan population, four of the selections did not receive a written notification of the right to cancel within the required timeframe.
Cause
The notification process is automated and there was a system error during a mass electronic email distribution notification.
Questioned Costs
None.
Effect
A population of students did not get notified of their right to cancel direct loans within 30 days.
Identification as a Repeat Finding, if Applicable
Not applicable.
Recommendation
BerryDunn recommends the reviewer manually check the student account correspondence log within the system following the email notifications to determine accuracy and completeness.
Views of Responsible Officials and Corrective Action Plan
Management agrees with the finding. See attached Corrective Action Plan.