Finding Text
Aggregate Loan Limits Other Matter DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2021-22 Financial Aid Year Condition: A student had received federal direct loans in excess of the undergraduate level aggregate limit and was disbursed graduate level federal direct loans by the University. Criteria: 34 CFR 685.203 (d),(e) Questioned Costs: $8,360 Context: Out of 60 tested for eligibility and disbursement, 1 student had been flagged on their ISIR for exceeding to the combined aggregate loan limit triggering a review of the student?s NSLDS loan history. The student had received undergraduate level loans in excess of the undergraduate aggregate loan limit. The University incorrectly disbursed $8,360 in federal direct loans to the student before resolving the ISIR eligibility code. This has not been corrected during the audit. Cause: This was an oversight. The University failed to resolve the ISIR aggregate loan limit eligibility code prior to disbursing aid. Effect: The student received $8,360 in unsubsidized loans that they were not eligible to receive. Identification as repeat finding, if applicable: N/A Recommendation: We recommend that the University review all students flagged on their ISIR?s for being close to aggregate loan limits before disbursing federal loans to ensure the student is eligible. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.