Audit: College erred in awarding grants

Feds say Lone Star dispersed $14 million to ineligible students

A federal audit found that Lone Star College improperly dispersed close to $14 million in grants and federal loans to ineligible students over a four-year period, the school system said this week.

A Department of Education program review discovered that from 2012 to 2016, the Houston-area career training college gave out $13.8 million in Pell, Supplemental Education Opportunity Grants and federal loans to students who shouldn’t have received them, according to a Lone Star College news release.

The audit found that the money went to students from ineligible high schools, and that the institution didn’t prevent students with unsatisfactory academic progress from receiving aid, under certain regulations.

In all, the improperly distributed funds accounted for 2 percent of the $663 million awarded over the same time period, according to the news release.

Chancellor Stephen C. Head said the college, which enrolls 99,000 students per semester, is cooperating with the Department of Education.

“I’m obviously disappointed in the findings. We take great pride in our business practices and our obligations to the community,” Head said in a news release. “We take full responsibility for implementing the appropriate actions to ensure we adhere to best practices moving forward.”

In response to the audit’s findings, Head has launched a full audit of the college’s financial aid practices, with assistance from outside specialists.

The Houston Chronicle has contacted the Department of Education and Lone Star College for comment. It’s unclear how the audit’s findings will affect the students who shouldn’t have received the funds.

Lone Star College operates six college campuses, eight centers, two university centers, Lone Star Corporate College and LSC-Online.