Institutions of higher education (IHE) that are eligible to participate in Title IV programs do so under the Higher Education Act of 1965 (HEA). When an IHE stops participating in Title IV programs, closes or otherwise ceases to participate either voluntarily or involuntarily, they must have a close-out audit performed on their unaudited Title IV program funds and submit the audit report to Federal Student Aid (FSA). If the close-out audit is not submitted, an alternative assessment is performed by FSA to determine whether the IHE must repay any Title IV program funds to the U.S. Department of Education (Department). The Office of Inspector General (OIG) performed this inspection to determine the results of the Department's processes for assessing and recouping liabilities from IHEs that closed for the period October 1, 2020, through September 30, 2023. OIG found that the Department has processes in place for assessing and recouping liabilities from IHEs that close. Based on these processes, FSA's School Participation Divisions (SPD) determined that 47 of the 161 IHEs that closed should repay the Department a total of $34,593,135 in Title IV program funds. These processes also led to FSA's SPDs assessing liabilities totaling $30,507,138 during the period reviewed for 13 of the 19 closed IHEs OIG selected for review. The Department's Office of Finance and Operations recouped a total of $812,998 of those liabilities from 8 of the 13 IHEs. However, despite these efforts, OIG found that five of the seven sampled SPDs that oversee IHEs and that were included in the review did not always follow the established processes to timely determine whether liabilities should be assessed against IHEs that closed. OIG also found that four of the seven SPDs did not always comply with procedures requiring staff to send notices to FSA stakeholders regarding an IHE's closure or pending closure. Based on the findings, six recommendations were made to strengthen the policies, procedures, and processes that the Department has in place for assessing liabilities against IHEs that closed and to ensure required notifications are sent to appropriate stakeholders and IHEs about closure and the pending closure of IHEs.