Finding Text
Criteria: 34 CFR 668.22(a)(6)(iii)(A) requires an institution to provide, within 30 days of the date the institution determines that a student has withdrawn, written notification to the student, or the parent in the case of a Parent PLUS loan, detailing the specific items outlined in paragraphs 1-5 of the aforementioned section.
Condition/context: Of the 20 students selected for testing the proper return of Title IV funds, we noted one instance in which the student was eligible for a post-withdrawal disbursement of loan funds. In this instance, the College did not provide written notification to the student and the student was disbursed loan funds.
Cause: The Student Financial Aid Office does not have a control in place to ensure that it provides written notification of post-withdrawal eligibility prior to a disbursement.
Effect: The College could disburse funds to students or parents who did not wish to receive them.
Questioned costs: None.
Identification as a repeat finding: No.
Recommendation: The Student Financial Aid Office should implement a control to ensure that the proper notification is sent to students who are eligible for a post-withdrawal disbursement.
Views of responsible officials: Management concurs with the finding. See Exhibit I for the corrective action plan.