Finding Text
Need Analysis Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 21-22 Financial Aid Year Condition: Students were not initially awarded subsidized aid based on need. Criteria: 34 CFR 668.42 & 34 CFR 685.301 Questioned Costs: $0 Context: Out of 60 students, 3 students were not awarded aid appropriately based on need analysis. 2 students received unsubsidized loans when they were eligible for subsidized loan totaling $1,564 under awarded. 1 student was awarded $3,765 subsidized loans in excess of need due to institutional scholarships excluded from estimated financial assistance. Cause: No secondary review of awarding. Effect: Students not awarded need based federal aid according to eligibility. Incorrect allocation of subsidized versus unsubsidized loans affects the amount and timing of interest the student must repay. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that the College or their third-party administrator set up reports in the student information system to periodically check for over or under awarding of need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.