AUGUSTA, Ga. -- Paine College has lost eligibility to one federal loan program for students and could lose more funding for mismanaging student financial aid and inaccurately reporting enrollment and financial data, according to a recent financial audit.
The school allegedly did not change enrollment statuses or return unused aid to the government after some students withdrew in the 2010 fiscal year. The audit, certified March 22, examined fiscal years 2009 and 2010.
More than 90 percent of students at 130-year-old private, historically black college rely on federal aid.
Paine has lost access until 2014 to the Federal Perkins Loan, a need-based program for students, after not properly accounting for the funds.