Information on the Federal Program: Federal Direct Student Loan Program (CFDA Number 84.268) – U.S. Department of Education
Criteria: 34 CFR 668.165(a)(2)(ii)
If an institution credits a student ledger account with Direct Loan, or Federal Perkins Loan funds, the institution must notify the student or parent of their right to cancel all or a portion of that loan, or loan disbursement.
Condition and context: Out of a population of 79 graduate students, we sampled 8. Out of this sample, the Institution failed to provide evidence that right to cancel notifications were sent for all 8 students.
Cause: The University did not have a control in place to ensure right to cancel notifications were sent to graduate students timely.
Effect: The University is not in compliance with Title 34, Section 668.165 with respect to graduate students.
Recommendation: We recommend that the University establish controls to ensure that right to cancel notifications are sent when student ledger accounts are credited.
Management Response: The University concurs with the finding. The University is currently utilizing the Banner Optimization to develop a message alert within the Student Portal (Wired) when a loan disbursement is made. This will be fully functional in FY25.
101.