Finding Text
Finding No. 2022-002 ? Title IV Credit Balances Federal Agency: U.S. Department of Education (DOE) Program: Student Financial Assistance Cluster ? Federal Direct Loan Program: ALN: 84.268 Criteria: A Title IV credit balance must be paid directly to the student or parent as soon as possible but no later than (i) 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (ii) 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period (34 CFR 668.164(h)(2)). Condition: Of the 40 students with credit balances that we selected for test work, we identified 1 student whose credit balance was paid to the student 15 days after the credit balance was created. Questioned Costs: None. Prevalence: Identified in 1 out of 40 students tested. The sample was not intended to be, and was not, a statistically valid sample. Effect: Returning funds in a timely manner is one of the factors examined by the Department in evaluating a school?s financial responsibility. Cause: The University had new staff in the accounting department who misinterpreted the applicable guidance. One of the days within the 15-day period was a banking holiday and was not included in the day count. Recommendation: We recommend that the University review its processes around Title IV credit balances to ensure they are returned to students as soon as possible but no later than 14 days after the credit balance is generated. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, and corrective measures are being made.