Finding Text
2023–005: Over-Award of Financial Aid
Federal agency: U.S. Department of Education
Federal program title: Student Financial Aid Cluster
Assistance Listing Number: 84.268
Award Period: July 1, 2022 through June 30, 2023
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or Specific Requirement:
The Code of Federal Regulations, 34 CFR 685.203(a) outline the maximum subsidized loan amounts for students based on their dependency status, year of education, and other factors.
Condition/Context:
During our testing, we noted 1 instance out of 25 students tested where the subsidized Stafford loan awarded to the student was over the maximum amount they were eligible for.
Questioned Costs:
$1,000
Cause:
The University did not appropriately determine the student's level of education when awarding the Subsidized Stafford Loan.
Effect:
Those students that were over-awarded subsidized loans were awarded incorrectly as they were not eligible for the specific awarded amount.
Repeat Finding:
No
Recommendation:
We recommend the University evaluate its procedures and a policy around how level of education is determined and verified when packaging and awarding students.
Views of responsible officials:
Please refer to the attached corrective action plan.