Report: Texas Colleges Overseeing Student Aid Incorrectly

Thursday, March 1, 2012
The state auditor's office has found significant problems in how 11 state colleges and universities follow federal rules governing the handling of student aid money. The findings were not bad enough to endanger the schools' funding. But auditors said that the "significant deficiencies" and "noncompliance" they uncovered meant that the schools had made improper expenditures of federal money or were at risk of doing so. Among the findings : * Ten schools -- including the University of Texas, Texas Tech and Texas A&M -- had calculated improperly the costs of attendance used in awarding financial aid to some students. * Several schools had mishandled tracking of and decisions about whether students' academic progress qualified them for continued federal aid. * Several schools had awarded more loans or direct aid to individual students than allowed by law.

Read more »