Finding Text
Finding number: 2023-001
Federal agency: U.S. Department of Education
Programs: Student Financial Assistance Cluster
Assistance Listing #: 84.063
Award year: 2023
Criteria
According to 34 CFR 685.309(b)(2):
Unless [the institution] it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that –
(i) A loan under title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or
(ii) A student who is enrolled at the school and who received a loan under title IV of the Act has changed his or her permanent address.
The Dear Colleague Letter GEN-12-6 issued by the U.S. Department of Education (“ED”) on March 30, 2012 states that in addition to student loan borrowers, Enrollment Reporting files will include two additional groups of students: Pell Grant and Perkins Loan recipients.
According to 2 CFR Part 200, Appendix XI Compliance Supplement updated May 2023:
Under the Pell Grant and loan programs, institutions must complete and return within 15 days the Enrollment Reporting roster file placed in their Student Aid Internet Gateway mailboxes sent by ED via the National Student Loan Data System (“NSLDS”). The institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days. Once received, the institution must update for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date, and submit the changes electronically through the batch method or the NSLDS website. Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer.
Condition
The Federal Government requires the College to report student enrollment changes to the National Student Loan Data System (“NSLDS”) within 60 days and with an accurate effective date of the student enrollment change. During our testing, we noted 2 students, out of a sample of 40, that had incorrect effective dates reported to NSLDS.
Cause
The College’s policy is to report graduated students to the NSLDS effective as of the last day of classes per the College’s academic calendar. For Fall 2022 and Spring 2023, the last day of classes was December 20, 2022 and May 8, 2023, respectively. The Registrar reported the effective date of a Fall 2022 graduate as December 31, 2022 and a Spring 2023 graduate as May 31, 2023.
Effect
The College did not report the students’ correct effective dates to NSLDS, which may impact the students’ loan grace periods.
Questioned Costs
Not applicable
Perspective
Our sample was not, and was not intended to be, statistically valid. Of the 40 students selected for testing, 2 students, or 5% of our sample, had incorrect effective dates reported to NSLDS.
Identification as a Repeat Finding, if applicable
Not applicable
Recommendation
The College should provide training to employees responsible for processing information for the NSLDS and ensure that they have adequate knowledge in the related rules and regulations. This training should include an explanation of the effective date of a student’s withdrawal, the importance of reporting the correct effective date and the consequences of incorrect reporting. This oversight should also ensure that the effective date reported to NSLDS is consistent with the date the student separated from the College.
View of Responsible Officials
The College agrees with the finding and has implemented the corrective action plan listed below.