Audit 379916

Federal Agency: U.S. Department of Education; Office of Federal Student AidPass through Entity: Not applicableProgram Name: Federal Direct Student Loan ProgramAL# and Program Expenditure: 84.268 ($797,519)Award Number: P268K257533Federal Award Year: July 1, 2024 to June 30, 2025Questioned Costs: $-0-Condition Found: The incorrect withdrawal date was reported to the National Student Loan Database System (“NSLDS”) for four of the nine students selected for testing that received Federal Direct Student Loans.Criteria: NSLDS informs loan servicers of changes in a student’s enrollment status that indicate when the repayments or interest accrual begins and ends. The date a student enrolls, withdraws, graduates, or drops below half-time status should be reported accurately within sixty days of the enrollment status change to NSLDS. Cause: The Financial Aid Director used the date students informed the College they were not returning for the next semester as the withdrawal date instead of the last date of attendance for the next semester for one of the four students. NSLDS was not updated to include Spring 2025 enrollment status changes and a May graduation date for the one student associated with the finding. Finally, the incorrect withdraw date was used for the remaining two students. Possible Asserted Effect: The loan servicers were not aware of the correct deferral, repayment, and interest calculation dates. Repeat Finding: See Finding 2024-001 for a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Director should update the withdrawal dates in NSLDS. Procedures should be improved to ensure that the enrollment status change dates entered into NSLDS are accurate and are based on a student’s last date of attendance. Management Response: Management agrees with the auditors’ finding and their recommendation. The Financial Aid Director updated the enrollment status for the students in question in December 2025. Procedures will be improved to ensure that a student’s enrollment status is updated timely and with the correct date of the change.

Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program AL# and Program Expenditure: 84.268 ($797,519) Award Number: P268K257533 Federal Award Year: July 1, 2024 to June 30, 2025 Questioned Costs: $-0- Condition Found: A Federal Direct Loan exit interview was not completed by, nor were instructions sent to, students on how to complete an exit interview when the students graduated from the College or dropped below a halftime enrollment status. This was applicable for two of the nine students selected for testing that received Federal Direct Loan funds. Criteria: Federal Direct Loan recipients must receive exit interview counseling. If in-person counseling is not completed, the College may mail written counseling materials to a student’s last known address within thirty days of the date the student withdrew from the College or was attending less than half-time. Cause: Federal Direct Loan exit counseling was not provided when students graduated, withdrew from the College, or dropped below a halftime enrollment status. This was an oversight on the part of the financial aid office staff. Possible Asserted Effect: The students were not aware of their responsibilities related to the Federal Direct Loan program, including repayment options and when repayment on the loans begin. Repeat Finding: See Finding 2024-002 for a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: Federal Direct Loan exit interview information should be sent to the students in question. Procedures should be improved to ensure that Federal Direct exit interviews are completed or information is sent to a student when a student ceases attendance at the College or drops below a halftime enrollment status. The exit interview should be sent within 30 days of the qualifying event. Management Response: Federal Direct Loan exit interview information was sent to one of the students in question in August 2025 and the second student in question in September 2025. Procedures will be improved to ensure Federal Direct Loan exit interviews are completed or information is sent to students when they cease enrollment at the College.