Audit 387275

Criteria or specific requirement: Per 34 CFR 682.604(a)(1), a school must ensure that exit counseling is conducted with each Direct Loan borrower and graduate or professional student PLUS Loan borrower either in person, by audiovisual presentation, or by interactive electronic means. In each case, the school must ensure that this counseling is conducted shortly before the student borrower ceases at least half-time study at the school, and that an individual with expertise in the Title IV programs is reasonably available shortly after the counseling to answer the student borrower's questions. Condition: The University did not have documentation of exit counseling notification. Context: During our testing of 40 students, we identified 1 student that did not have documentation of exit counseling notification. Questioned costs: None. Effect: Exit counseling helps federal student loan borrowers understand how to repay their loans and reviews deferment and repayment plans options. If students are not notified of exit counseling, they could be at risk of not understanding their rights and responsibilities regarding loan repayment. Cause: The University did not have proper procedures in place to ensure that notification of required exit counseling was sent to the applicable student who withdrew in two consecutive terms. The student received exit counseling after the first withdrawal but not after the second. Repeat finding: No. Recommendation: We recommend the University review reporting processes to ensure all students that require exit counseling receive it in a timely manner. Views of responsible officials: Management acknowledges the finding and has developed a plan to correct the finding.

Criteria or specific requirement: The Department of Education requires that Title IV credit balances must be paid to the student or parent no later than 14 days after the credit balance occurred. (34 CFR 164(h)(2)). Condition: The University did not timely refund credit balances to the student or parent. Context: During our testing of 40 students, we identified 1 student that was not refunded within the required 14 days. The credit balance was refunded 11 days late. Questioned costs: None. Effect: The student or parent did not have access to Title IV funds timely after disbursement. Cause: The Student Financial Aid office had an automated process to ensure all refunds were issued in 14 days failed to recognize a credit balance of less than $10 in a student's account. Repeat finding: No. Recommendation: We recommend the University review credit balance refund processes, including any automated processes, to ensure all credit balances are paid timely. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.