Authored by David Kelley
A recent report published by the Consumer Financial Protection Bureau (CFPB) found that inaccurate enrollment reporting by Higher Education Institutions is harming student borrowers in more ways than one. As required by the Higher Education Act, Colleges and Universities are required to report complete and accurate enrollment information in a timely manner. This information is used by Higher Education Institutions, Lenders and Loan Servicers to make determinations on various matters such as repayment dates, interest charges, eligibility for current or future aid and credit reporting. As reported by the CFPB, “we have received complaints from student loan borrowers who report encountering a range of problems that may be driven by incomplete or inaccurate reporting of enrollment status information.”
The responsibility for reporting remains with the College or University, regardless of contracting with a third-party to assist with the submission of its enrollment data to the Department of Education. When this reporting is not complete or accurate, the ramifications to the student can include the following:
This is an area where we see a significant number of findings when performing compliance audits. These findings are often caused by a variety of factors, but most commonly:
Listed below are steps you can take to ensure compliance with this complex and ever evolving process:
For more information on this topic, or to learn how Baker Tilly higher education specialists can help, contact our team.