Finding Text
Finding 2023-001: Policies and Procedures Related to Packaging Student Financial Aid – SFA Cluster (significant deficiency)
Statement of Condition: From our testing sample of twenty-five (25) students, we found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan.
Criteria: Federal direct loans should be disbursed in accordance with the Federal Student Aid Handbook, Volume 3. Also, in accordance with 34 CFR 668.59, Consequences of a Change in an Applicant’s FAFSA Information, if an applicant’s FAFSA information changes, the student’s financial aid package should be recalculated.
Effect of Condition: We found four (4) instances where student financial aid was incorrectly packaged. Four (4) students were under-awarded a federal direct subsidized loan.
Cause of Condition: The College did not follow its policy to review the packaging of student financial aid and to review FAFSA information changes for the repackaging of student financial aid, primarily as a result of turnover within the College’s Financial Aid Department during the year.
Recommendation: We recommend the College follow its policies and procedures to address these issues.
Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this
recommendation immediately.