Finding Text
Information on the federal program: Student Financial Assistance Cluster; Direct Loans (Assistance Listing Number 84.268); United States Department of Education; Award Year 2021-22: Compliance Requirement ? Eligibility; Type of Finding: Questioned Costs. Criteria: 34 CFR 685.301 requires that total aid not be awarded in excess of the student?s financial aid or cost of attendance. 34 CFR 685.203(d) and (e) require aggregate loan limits not to exceed $31,000 for dependent undergraduate students. Condition: For three Direct Loans tested, students were over-awarded funds: two had negative unmet financial need and one exceeded the aggregate loan limit. Cause: Due to the internal control issues outlined in finding 2022-003 below, the awarding of Direct Loans was not reviewed as thoroughly as it should be. Effect: The three students affected received more in aid than allowed. Questioned Costs: Known questioned costs total $4,591: See Schedule of Findings and Questioned Costs for chart/table Projected out to the total population, likely questioned costs total $42,379. Context: Total Direct Loans in our 64-student federal student aid file testing: 53. Recommendations: Refund the overpayments to the Department of Education. Follow the recommendations in finding 2022-003 below to prevent further occurrences. Responsible Official?s Response and Corrective Action Planned: see corrective action plan.