IU to pay state for excess aid

The implementation of the PeopleSoft student information software system at the start of the 2004-2005 academic year resulted in the distribution of approximately $274,000 in excess financial aid, according to an audit report. \nAn internal financial aid program written by the University and run on the PeopleSoft system did not recognize situations in which the awarded aid should have been reduced, IU Director of Media Relations Larry MacIntyre said in an e-mail. \nThe excess awards resulted from students receiving too much in federal student loans. IU returned the excess money although students did not have to repay the University. \nThe noncompliance with federal regulations was found during an annual audit, said Paul Joyce, deputy state examiner for the Indiana State Board of Accounts. \nA national financial aid consultant, Nancy Sinsabaugh, was hired in the summer and fall of 2005 to advise the University about its financial aid structure. She recommended the University hire a university financial aid director and improve its business processes, according to IU officials. \nThe University created a new position when it hired a director of financial aid earlier this year. The position existed in the past but was eliminated when the previous director retired more than 10 years ago and was not replaced. \nThe University plans to resolve the noncompliance issues by following the "corrective action plan" it developed. This plan includes repaying excess aid awards to the government and closing gaps in internal procedures.