The objective of our audit was to determine whether Federal Student Aid (FSA) had adequate processes for (1) waiving the requirement that Title IV of the Higher Education Act of 1965 (Title IV) funds be returned, cancelling borrowers’ obligation to repay Direct Loans, and excluding Federal Pell grant (Pell) disbursements from Pell lifetime usage calculations for students who withdrew because of the coronavirus pandemic (impacted students);1 and (2) postsecondary institutions (schools) to report the number and amounts of return of Title IV (R2T4) waivers applied. Our audit covered FSA’s processes and related activities in these areas from March 27, 2020, when the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted, through June 27, 2022. Because R2T4 reporting was not due until September 30, 2022 (towards the end of our fieldwork), we limited the scope of our review in that area to the design of FSA’s processes.
FSA had adequate processes for waiving return of Title IV (R2T4) requirements, cancelling borrowers’ obligation to repay Direct Loans, and excluding Pell disbursements from Pell lifetime usage for impacted students. FSA also designed adequate processes for schools to report the number and amounts of R2T4 waivers applied.
The report did not include any recommendations.
Implementing Pandemic Relief Aid Laws
See more information on our pandemic relief oversight work.