Finding Text
Finding Number 2022-001
CFDA Number: 84.268 Federal Direct Student Loans
Criteria: Per 2 eCFR section 685.300, indicates that an institution must certify that the amount of the
loan for any student is not in excess of the annual limit applicable for that loan program and that the
amount of the loan, in combination with previous loans by the borrower, is not in excess of the
aggregate limit for that loan program and must set forth a schedule for disbursement for the
proceeds of the loan in installments
Condition: During 2022, two students were awarded federal loans for the 2022-2023 academic year
in excess of their aggregate limits. The over-awards were divided evenly among the three terms of
the academic year. As such, the College did not set forth a schedule for disbursement for the
proceeds of the loan in installments. There was no review performed over the awarding of the aid.
This was self-identified by management and self-corrected. Since the over awards were
discovered, the College has changed the process so that an external consultant reviews all files
and makes preliminary award decisions. The consultant reviewed 189 files, noting no additional
over awards. Additionally, the VP of Student Services now reviews all awards.
Cause: The College’s staff in the financial aid office was not adequately trained to recognize flags
raised by the College’s tracking software
Effect: Two students received loans for more than they were authorized to receive.
Prevalence: This is an isolated incident as the College has reviewed disbursements made to 189
students and discovered no additional instances of an over-award.