Finding Text
2022-004 Student Aid Disbursements Criteria - Disbursements made under the student aid portion of the Education Stabilization Fund are required to be made directly to students. The Higher Education Emergency Relief Fund III Frequently Asked Questions, question #11 further states that Institutions may not use the emergency financial aid grants to satisfy a student?s outstanding account balance, unless it has obtained the student?s written (or electronic), affirmative consent. Condition - In 1 of 21 students selected for testing it was noted that a student aid grant was applied to a student?s account balance without written (or electronic), affirmative consent. Effect - As a result of this condition, the student was not given a direct payment for use as emergency relief in response to the effects of coronavirus. Cause - The cause of this noncompliance was a lack of sufficient communication among staff and a lack of prompt corrective action. Recommendation - We recommend the Institute establish controls and procedures to ensure student aid grant payments are made directly to students unless the Institute obtains student?s written (or electronic), affirmative consent to apply the funds to the student?s account. Response - There was some initial confusion over which account these funds were to be applied to. The fund administrator applied the funds to the student HEERF funds rather than the Institutional funds. Upon realization of where the funds originated, the financial aid and fiscal operations departments then generated election forms for students. Since this particular student was no longer enrolled at the college, the election form was not returned. Conclusion - Response accepted.