Finding 946422 (2023-002)

Finding 2023-002; Federal Agency: U.S Department of Education; Program Name: Student Financial Assistance Cluster; Assistance Listing Number: 84.038/84.063/84.268; Federal Award Year: Funding periods between July 1, 2022 and June 30, 2023; Compliance Requirement: Enrollment Reporting; Finding Type: Significant Deficiency; Criteria: As described in 34 CFR Section 674.19 for Federal Perkins Loans, 34 CFR Section 690.83 (b)(2) for Pell, 34 CFR Section 685.309 for Direct Loans, a student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to loan holders by the Department of Education. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of-absence. Condition including perspective: For three out of the 40 students sampled for testing the timeliness and accuracy of the University’s reporting of students enrollment status change to NSLDS, the students status change was not reported to the National Student Loan Data System (NSLDS) within 60 days after the University was made aware of the students status change effective date. Cause and Effect: The University did not have sufficient controls in place to ensure timely reporting to the National Student Clearing House (NSC). As a result of that the information would not be transmitted timely to the NSLDS which would impact information regarding the status of students with federal loans. Questioned Costs: No questioned costs were identified. Statistical Sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend the University enhance its current policies and procedures to reasonably ensure student status changes are reported within the appropriate time requirements. Views of Responsible Officials: Lehigh University accepts this finding. The training of new staff is always a priority, but this finding is the result of unusual turnover. Staff are now sufficiently trained on this issue. They run a weekly report to identify students who have withdrawn or have otherwise changed their attendance level. New staff are now fully trained in updating the NSLDS with student enrollment status changes.