• Friday, November 27, 2009
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Federal Audit Finds Fault With Fafsa Oversight

Washington — An audit released last week by the U.S. Department of Education has found that more than $1.51-billion in federal student aid was distributed in 2004-5 to students whose loan applications were questionable or erroneous. That figure, however, may overestimate the number of students affected.

The audit checked common error codes that could be generated on the Free Application for Federal Student Aid form. The errors include not being registered with Selective Service, answering “yes” to a drug-conviction question, or being unable to verify U.S. citizenship.

The auditors found that about $3.5-million in federal aid was disbursed to 477 students who in 2004-5 and in 2005-6 answered “yes” to having a drug conviction. Additionally, more than $812-million in aid was distributed to 86,246 students whose U.S. citizenship could not be confirmed in both years.

Officials of the department’s office of Federal Student Aid responded to a draft of the audit, saying the findings overstated the problem. “It is unlikely that any students are receiving aid to which they are not entitled due to the failure of schools to resolve” the codes, the office said. —JJ Hermes