Finding Text
2024-005 – Student Financial Aid Cluster – (a) Federal Supplemental Educational Opportunity Grant (b) Federal Work Study Grant (c) Federal Perkins Loan Program (d) Federal Pell Grant Program (e) Federal Direct Loan Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 - Year Ended June 30, 2024
Criteria: According to 34 CFR section 685.304, an educational institution must ensure that exit counseling is conducted with each Direct Loan student borrower 30 days after the student withdraws from the institution or falls below half-time status.
Condition: During our student file testing, we noted five students out of 40 (12.5%) did not have documentation in their file that exit counseling was sent thirty days after the student withdrew. We consider the missing exit counseling to be a significant deficiency with the Eligibility Compliance Requirement.
Statistical sampling was not performed in the selection of the sample.
Questioned Costs: $0
Cause and Effect: The College did not send out exit counseling when the student withdrew timely and the College’s controls did not detect the missing exit counseling for the students.
Recommendation: We recommend the College closely monitor all students who are receiving loans to make sure they are sent exit counseling timely.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.