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Olivia McDowell, a junior biology major and English minor, who said she's had frustrating encounters with the university's financial aid office in the past, said she found the situation disconcerting.

A representative from the university told ABC News that it is working with outside experts to \"ensure every dollar\" is \"accounted for\" and that the university will exercise all of its options to \"recoup\" funds.

According to Frederick, steps his administration has taken to improve the matter include ensuring that all money received is being vetted by the university budget office, as well as hiring a new associate provost for enrollment management.

The federal Department of Education declined to comment.

ABC News' Erin Dooley contributed to this report.

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