FR 4.7 - CS 3.10.2 Title IV Program Responsibilities/Financial Aid Audits

The institution is in compliance with its program responsibilities under Title IV of the most recent Higher Education Act as amended. (In reviewing the institution's compliance with these program responsibilities, the Commission relies on documentation forwarded to it by the U. S. Department of Education.)

Compliance ___ Non-Compliance

Narrative:

Savannah State University is compliant with its program responsibilities under Title IV of the most recent Higher Education Act as amended. The University's current Program Participation Agreement (A.4.7), its timely submitted FISAP reports for 2013-2014, 2014-2015, and 2015-2016 (B.4.7), along with applicable closeout letters are provided (C.4.7) and demonstrate that the institution meets the minimum requirements to administer federal financial aid in accordance with Regulation 34 CFR parts 600 and 668.

The University System of Georgia (USG) Office of Internal Audit conducted a review of the System Institutions' Satisfactory Academic Progress policies and administration for award years 2012-2013 and 2013-2014. Each institution in the USG was issued institution specific reports. The report issued by the USG Office of Internal Audit for Savannah State University was provided to the US Department of Education School Participation Division-Atlanta. A program review focusing on the findings of the USG Office of Internal Audit Review was initiated August 19, 2015 and the Final Program Review Determination was issued September 23, 2016 (D.4.7).

The Final Program Review Report, which reflects the findings and University responses is attached. The Report requested that the University return $571, 142.01 to the Department of Education. The University accepted this determination and agreed to return the funds over a three year period with the first payment during the 2016-2017 year (E.4.7).

The University has had no restrictions or negative actions placed on it by the Department of Education in relation to awarding or administration of its Federal Financial Aid Programs. In addition, the University has had no complaints filed with the Department of Education as a result of its administration of this program.

For several years, the University has had a default rate which is below the Default Rate threshold established by the United States Department of Education (F.4.7).This is a result of creative strategies that are continuously exercised to improve the default rate. The University added a Loan Default Manager position to the Office of Financial Aid in 2012 (G.4.7). This position and the actions reflected in the job description has enabled the University to improve its default rate. The three year cohort default rate has declined from 21.1% to 16.3%

Sources

(A.4.7) Program Participation Agreement
(B.4.7) FISAP Submission Reports

13-14 FISAP Submittal
14-15 FISAP Submittal
15-16 FISAP Submittal

(C.4.7) DOC Closeout Letters
(D.4.7) DOE SAP Final Review
(E.4.7) DOE Repayment Agreement
(F.4.7) Default Rates
(G.4.7) Loan Default Prevention Officer Description