Finding Text
Criteria: According to 34 CFR 685.203 an eligible dependent student in their first year of school can borrow up to $3,500 in Subsidized Direct Loans and $2,000 in Unsubsidized Direct Loans. As the student receives more credit hours and advances to the next year of school the student can borrow up to $4,500 in Subsidized Direct Loans. Condition: We noted one of the forty students (2.5%) was not properly awarded Subsidized Direct Loans. See Schedule of Finding and Questioned Costs for chart/table. Questioned Costs: $1,693. Effect: As a result, the Institution did not give the student the proper amount of Direct Subsidized Loans. The student was incorrectly awarded Unsubsidized Direct Loans when they are entitled to Subsidized Direct Loans. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.