Finding Text
ALN, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Direct Student Loan Program ALN 84.268 Federal Award Identification Number and Year Various Pass-through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes 2021-002 Criteria - If an institution credits a student ledger account with a direct loan, the institution must notify the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student's ledger account at the institution of: (i) The anticipated date and amount of the disbursement (ii) The student's or parent's right to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the secretary (iii) The procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan or loan disbursement (34 CFR Section 668.165(a)(2) and (a)(3)). Condition - The College was not sending notifications meeting the required criteria during the the year. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The College did not send notifications with the required information included for the entire fiscal year. Cause and Effect - The College did not have a process in place to provide students and parents with required notifications. As a result, students and parents were not provided with the required information. Recommendation - The College should implement a process to ensure notifications sent to students and parents include all required information. Views of Responsible Officials and Planned Corrective Actions - The College has updated their notifications to include the required elements beginning in the Fall 2022 semester.