A huge mistake at State College of Florida, formerly known as Manatee Community College, is going to cost the school millions of dollars. Incorrectly handing out $7 million in federal financial aid and loans to nearly 2,000 students has the community college in hot water with the federal government. According to a recent audit, State College of Florida gave out hundreds of student loans and grants to students who were taking too long to earn their two-year degrees or who had dropped too many classes. Because of these gaffes the school is now required to repay $3.1 million to the federal government. This figure comes from the total amount of ineligible financial aid paid plus 13% on ineligible student loans, which is the percent of loans that typically default.
Students who were incorrectly given loans will still be required to repay them, however those students who were incorrectly awarded a federal Pell grant will most likely not have to repay the grant money. State College of Florida will be responsible of repaying the government for those grants.
Auditors found the errors when the financial aid office struggled to stay current with the new regulations. The mistakes occurred at a time when the institution was dealing with record enrollment figures which kept the staff extremely busy. No new employees were hired to help with the enrollment applications and financial aid packages, rather the school used a computer software to assist with the student loan and grant application process. This computer software did not have the correct settings according to school officials and led to thousands of students being awarded financial aid when they were not actually qualified.
As a result of these mistakes the college is working to revamp its financial aid department and is currently seeking a new department director.
