EAST TEXAS BAPTIST UNIVERSITY

Enrollment Reporting to National Student Loan Data System (NSLDS) DEPARTMENT OF EDUCATION ALN #: 84.268 and 84.063 Federal Award Identification #: 2023-2024 Award Year Condition: The NSLDS enrollment status effective date for withdrawals and graduated students was not accurately sent to NSLDS from the system. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 68 students tested, 3 students had incorrect effective dates reported for their enrollment status. One student who graduated after the fall semester was reported as withdrawn instead of graduated. Two official withdrawals during the spring semester were reported as withdrawn at the end of the fall semester. These students were corrected during the audit process. Cause: The incorrect effective dates were pulled in order to send to NSLDS. Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University put a system in place to ensure that the date being reported to NSLDS as the effective date of withdrawal is the official withdrawal date of attendance for the student. We also recommend the graduation roster be checked each semester. We further recommend the University complete spot checks of enrollment statuses to NSLDS. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Need Analysis DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Award Identification #: 2022-2023 Award Year Condition: Students were not appropriately awarded subsidized aid based on need when there were changes after the initial award. Criteria: 34 CFR 685.203 Questioned Costs: $-0- Context: 2 students out of 60 were under awarded subsidized loans for a total of $1,440 underawarded. These students were corrected during the audit process by reallocating unsubsidized loans to subsidized loans. Cause: The University uses a system that does not automatically update all need analysis when a subsequent change is made. One student changed the enrollment status which changed the institutional aid and resulted in more subsidized eligibility. One student went into the portal and reduced the acceptance of the subsidized loan, and this student was not flagged to automatically swap to the unsubsidized loan to subsidized loan. Effect: Incorrect allocation of subsidized versus unsubsidized which affects the amount and timing of interest the student must repay. Identification as repeat finding, if applicable: Yes, 2022-001 and 2021-002. Recommendation: We recommend the University adjust processes to automate changes in packaging to reduce manual errors. We understand the University is moving to a new financial aid system for the 2023-2024 award year. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.