Finding Text
Finding 2022-003 - Overaward of Title IV Funds
Repeat of Prior Year Finding 2021-008
Federal Program - Federal Direct Loan Program
Federal Agency - U.S. Department of Education
Assistance Listing Number - 84.268
Federal Award Year - June 30, 2022
Criteria: Title IV regulations (34 CFR 685.203) states in no case may Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan amount exceed the student's estimated cost of attendance for the period of enrollment for which the loans were intended, less (1) the student's estimated financial assistance for that period and (2) the borrower's expected family contribution for that period.
Condition: During testing we noted two instances where the University awarded a Direct Unsubsidized loan to a student that caused the student's financial assistance received to be greater than the student's cost of attendance.
Cause: Lack of competency and turnover in the financial aid office contributed to the University not being able to correctly calculate the cost of attendance for one student, and erroneously awarding aid to a student who should not have received any aid.
Effect: The students received Title IV awards in excess of amounts they were eligible to receive.
Questioned Costs: One student was awarded $7,998 in excess of eligible Title IV funds.
Context: For 1 of 40 students, the University did not correctly calculate the cost of attendance. For 1 of 40 students the University awarded funds to an ineligible student. The sample was not a statistically valid sample.
Recommendation: The University should revise its procedures for awarding Student Financial Aid, including Federal Direct Loans, to ensure that aid is awarded correctly and that controls are in place to prevent overawards of Title IV funds.
Management's Response: Management agrees with this finding and has recognized their need for a qualified individual who is knowledgeable about financial aid requirements.