FAFSA Audit Shows Payment Flaws


January 16, 2008
by Scholarships.com Staff
An audit released by the Department of Education’s Office of Inspector General on January 9, 2008 points to problems in financial aid disbursements. Based on audit results, over $1.5 billion in financial aid was awarded to students whose FAFSA responses were either questionable or made them ineligible for aid.

An audit released by the Department of Education’s Office of Inspector General on January 9, 2008 points to problems in financial aid disbursements. Based on audit results, over $1.5 billion in financial aid was awarded to students whose FAFSA responses were either questionable or made them ineligible for aid.

Stated problems included Pell grant overpayments, awards exceeding loan eligibility, citizenship questionability, lack of Selective Service registration and awards offered to students with drug convictions.

Over $812 million was said to be disbursed to 86,246 students who had not resolved their citizenship confirmation problems. More than $447 was offered to males not registered with the Selective Service and over $3 million to students convicted for drug-related matters.

Officials from the Federal Student Aid Department responded by stating that the, “Risk suggested by the report is overstated.” They also claimed the audit had not taken into account additional security measures the department used to minimize errors.

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