ISU overpays student aid

TERRE HAUTE -- Indiana State University overpaid an estimated $3.4 million in federal financial aid to students who did not meet the school's academic progress standards, a state audit and the university found.\nIt could be 18 months before the U.S. Department of Education reviews the audit and determines how much the university must repay the government, said Becky Libler, interim associate vice president for enrollment.\nThe overpayments occurred over three academic years from 1999-2000 through 2001-02, the state Board of Accounts said in an audit report released Monday.\nISU's internal auditor became aware of potential problems last summer and notified the state and the U.S. Department of Education, Provost Steve Pontius said.\nThe amount overpaid represents about 3.5 percent of the total amount of federal financial aid distributed at the university, university spokeswoman Theresa Exline told the Tribune-Star for a story Tuesday.\nResponsibility for the error was spread among various campus offices, she said.\n"There isn't any single individual that you could say who was responsible for this, nor were there any personnel disciplined as a result," Exline said.\nStudents who erroneously received aid will not have to pay back any of the money. Also, students' eligibility for future financial aid will not be affected once they have met the academic progress standards.\nThe university's financial aid office relied on incomplete information in determining whether students were eligible for aid and making satisfactory academic progress, ISU officials said.\nThe aid office used computerized records from the registrar's office regarding student transcripts and retention.\nThose records did not include information about class hours dropped, or the hours of those students who had withdrawn from all classes before the last day of the official drop period. Aid officials lacked needed information about the number of hours students attempted to complete.