Audits Find 3 N.J. Universities Improperly Awarded Student-Aid Funds

Three universities in New Jersey have repaid or are repaying a total of $868,000 to the U.S. Department of Education after being cited for improperly awarding federal student-aid funds to students who were either ineligible for the grants and loans or whose financial need was overestimated, The Star-Ledger reported. The biggest share of that, nearly $609,000, was at New Jersey City University, which the Education Department begain auditing after a former financial-aid officer admitted embezzling $486,000 in student funds three years ago. Discrepancies were also found in routine audits conducted at Kean and Rutgers Universities. A Kean spokesman said the university had reached a settlement agreement with the department to pay back approximately $256,000. Auditors found only two errors at Rutgers, one of which involved a student who had exceeded loan limits, requiring the university to pay back less than $3,000.

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