Finding Text
Federal Program: Student Financial Assistance Cluster, Federal Direct Loan Program Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable Assistance Listing Number: 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations stipulate institutions must report to the National Student Loan Data System (NSLDS) when a student to whom a loan made under Title IV ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended within 30 days after the institution discovers the student's status changed, unless the institution expects to submit its next updated enrollment report within 60 days. (34 CFR 385.309(b)). Condition: For six students out of nine tested, the change in student status was not reported to the NSLDS within 30 days or included in a response to a roster file within 60 days. However, the students were ultimately reported to the NSLDS. This sample was not statistically valid. Cause: The Organization's procedures for complying with this requirement were not designed appropriately to allow for timely reporting to the NSLDS. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by schools. If an institution does not review, update and verify student enrollment statuses, effective dates of the enrollment status and the anticipated completion dates, then the Title IV student loan records will be inaccurate. Questioned Costs: There were no questioned costs associated with this finding. Context: The key position of financial aid director was vacant for part of the testing period. This position is responsible for proper enrollment reporting. As of the time of our testing, this position has been filled. Recommendation: The Organization should revise its procedures to ensure accurate enrollment information is sent to the NSLDS within the required timeframe. Views of Responsible Official(s): Management agrees with this finding and has recognized their need for a qualified individual who is knowledgeable about financial aid requirements. They have hired a new Director of Financial Aid and Student Housing.