In a recent matter, an SFAP assessment of liability was upheld by a Department of Education Administrative Judge pertaining to a proprietary school of higher education, which required the School to reimburse $71,742 to the Department of Education.
The school allegedly failed to provide to the Department the necessary documentation and information to substantiate Federal Pell Grant & Federal Direct Loan funds drawn down by the school between 2007 and 2009. The school also allegedly failed to provide evidence that it refunded Title IV funds to a student properly owed a refund documented in the audit report.
After examining the FAD and noting the school’s failure to comply with time limits and orders issued pursuant to this proceeding, Judge Richard I. Slippen concluded that the school failed to carry its burden of proof. The FAD was affirmed and the liability was upheld, requiring the School to pay $71,742 to the Department of Education.
For current Title IV practitioners, this case offers a very fundamental caution. It is imperative that the financial aid administrator meet all time sensitive deadlines in terms of both the administration of the Title IV funds and those associated with the appeal process should SFAP allege a violation of the Title IV regulations.
For a more detailed analysis of this matter, read my article:
The Consequences of a Failure to Meet Timing Deadlines in the Administration of Title IV Funds