Finding Text
Federal Agency: U.S. Department of Education
Federal Program Title: Student Financial Assistance Cluster
Federal Assistance Listing Number: 84.268
Award Period: 7/1/2022 – 6/30/2023
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: During our testing, we noted 1 student out of 35 where the subsidized direct loan awarded was over the maximum eligible amount.
Questioned Costs: $2,275
Context: During our testing, it was noted that 1 student's Title IV was not reallocated properly based on their EFC and outside scholarships they received, therefore, they were over awarded subsidized loans by $2,275.
Cause: The University did not reallocate Title IV funds properly based on need and other estimated financial assistance.
Effect: The student was not eligible for the specific awarded amount.
Repeat Finding: No.
Recommendation: We recommend the University evaluate its procedures and a policy around packaging Title IV based on need.
Views of Responsible Officials: Management agrees with the finding.