PANOLA COLLEGE

2025-001 Direct Loan Program – ALN 84.268; Grant Award No. P268K252297 Criteria: In 34 CFR section 668.165(a)(2), institutions are required to notify the student of the date and amount of loan disbursements credited to the student’s account, the right to cancel the loan, and the procedures and time by which the student must notify the institution that they wish to cancel within the timeframe noted in 34 CFR Section 668.165 (a)(3). Condition: The College did not provide the notifications required by 34 CFR section 668.165(a)(2). Context: As part of our audit procedures, we requested copies of the notifications sent to students selected as part of our testing. In response to our request, College personnel informed us that notifications of loan disbursements were not made. Cause and Effect: The College failed to notify the student when loan disbursements were credited to their student account. Students were not aware of when loans were applied to their accounts. While the College did provide notice of the right to cancel loans and the procedures required to notify the College if they wish to cancel the loan as part of the Financial Aid Offer letter for the 24-25 year, that letter was not always in the timeframe required. Recommendation: We recommend that the notifications required by 34 CFR section 668.165(a)(2) be made to students. Views of Responsible Officials and Planned Corrective Actions: We agree with this finding. The loan disbursement notifications were not possible in the POISE system due to how loans were applied to student accounts. As a result of the implementation of a new system that changed how aid is applied to student accounts, loan disbursement notifications have been sent out to students as required in Fall 2025.