Finding Text
Need Analysis DEPARTMENT OF EDUCATION
ALN #: 84.268
Federal Award Identification #: 2022-2023 Award Year
Condition: Students were not appropriately awarded subsidized aid based on need when there were changes after the initial award.
Criteria: 34 CFR 685.203
Questioned Costs: $-0-
Context: 2 students out of 60 were under awarded subsidized loans for a total of $1,440 underawarded. These students were corrected during the audit process by reallocating unsubsidized loans to subsidized loans.
Cause: The University uses a system that does not automatically update all need analysis when a subsequent change is made. One student changed the enrollment status which changed the institutional aid and resulted in more subsidized eligibility. One student went into the portal and reduced the acceptance of the subsidized loan, and this student was not flagged to automatically swap to the unsubsidized loan to subsidized loan.
Effect: Incorrect allocation of subsidized versus unsubsidized which affects the amount and timing of interest the student must repay.
Identification as repeat finding, if applicable: Yes, 2022-001 and 2021-002.
Recommendation: We recommend the University adjust processes to automate changes in packaging to reduce manual errors. We understand the University is moving to a new financial aid system for the 2023-2024 award year.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.