Rowan College of South JerseyHigher Education

Finding No. 2025-001 Information on the Federal Program U.S. Department of Education - Student Financial Aid Cluster (Federal Award Year 7/1/24 to 6/30/25): Federal Direct Student Loans: (Assistance Listing Number 84.268) (Federal Grant Number P268K251808) (FAIN – not applicable) Criteria or Specific Requirement Under 34 CFR § 668.165(a), institutions are required to notify borrowers in writing (or electronically) of the anticipated date and amount of each Direct Loan disbursement, as well as the borrower’s right to cancel all or a portion of the loan. This notification must be sent within a required time frame of crediting the student’s account. Condition The College did not provide required notifications to students (or parents, where applicable) regarding the disbursement of Federal Direct Loans for the Spring semester during the award year. Questioned Costs None. Context The auditor tested a sample of 15 students who received Federal Direct Loan disbursements during the audit period by reviewing student records and institutional documentation to determine whether required disbursement notifications were provided in a timely manner. Additionally, the auditor inquired with financial aid personnel regarding relevant procedures. Of the 15 items tested, 3 were identified as exceptions where notifications were not provided for the Spring semester during the award year. Effect or Potential Effect Failure to provide timely disbursement notifications may limit borrowers’ ability to exercise their right to cancel or reduce loan amounts, potentially resulting in increased debt burden. Additionally, this represents noncompliance with federal regulations governing the administration of Title IV programs. Cause The issue appears to result from the absence of a standardized procedure or automated system to ensure timely and documented delivery of disbursement notifications for all payment periods in the award year. Identification as a Repeat Finding Not applicable. Recommendation The College should implement and document procedures to ensure that all required Direct Loan disbursement notifications are generated and delivered to students (or parents, where applicable) in a timely manner for all payment periods during the award year. View of Responsible Officials and Planned Corrective Action The responsible officials agree with the finding and will address the matter as part of their corrective action plan.

Finding No. 2021-002 Information on the Federal Program U.S. Department of Education - Student Financial Aid Cluster (Federal Award Year 7/1/20 to 6/30/21): Federal Direct Student Loans: (Assistance Listing Number 84.268) (Federal Grant Number P268K211808) (FAIN ? not applicable) Federal Supplemental Educational Opportunities Grants: (Assistance Listing Number 84.007) (Federal Grant Number P007A202567) (FAIN ? not applicable) Federal Pell Grant Program: (Assistance Listing Number 84.063) (Federal Grant Number P063P202870) (FAIN ? not applicable) Criteria or Specific Requirement 34 CFR sections 668.22(a)(1) through (a)(5): When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student?s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution?s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. If the amount the student earned is greater than the amount disbursed, the difference between the amounts must be treated as a post-withdrawal disbursement. Condition The College did not correctly perform Return of Title IV (R2T4) calculations on 6 sampled students who withdrew from the College during Fall 2020, Spring 2021 and Summer 2021 terms. The College did not correctly factor in courses dropped by instructors, institutional charges, and days in the term when calculations were initially performed, resulting in Pell and/or Direct Loan underpayments or overpayments for each of the 6 sampled students. Questioned Costs There were 3 Pell underpayments totaling $1,371; there were 2 Pell overpayments totaling $523; and there was a Direct Loan overpayment in the amount of $787. Context In our sample of 42 students who were awarded federal student financial aid, 3 students were required to have a R2T4 calculation performed, these 3 calculations were tested and no exceptions were noted. We expanded our sample to include another 40 items and 6 exceptions were noted, therefore, total R2T4 sample size was 43. Out of the 43 samples, 33 students received Pell awards and 20 students received Direct Loans. Pell and Direct Loan disbursed for the sample were $72,207 and $84,056, respectively. There were a total of 484 R2T4 calculations performed for the award year. The population of R2T4 calculations included 378 Pell students and 248 Direct Loan students. Pell and Direct Loan disbursed for the population were $1,135,962 and $1,236,695, respectively. The sample was not intended to be, and was not, a statically valid sample. Effect or Potential Effect Noncompliance with the Return of Title IV requirements. Cause Oversight. Recommendation That the College establish procedures to correctly perform all Return of Title IV calculations. View of Responsible Officials and Planned Corrective Action The responsible officials and College agree with the finding and will address the matter as part of their corrective action plan.

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