Finding Text
Finding 2024-001:
Assistance Listing #84.268 Federal Direct Student Loans.
Criteria:
The College is required to provide exit counseling to student borrowers who withdraw or graduate from the College within 30 days of the institution’s knowledge of the exit (34 CFR § 685.304(b)).
Condition:
Student borrowers who left during or after the fall and spring semesters were not provided with the required exit counseling materials within 30 days of their exit. During our testing of Return of Title IV for withdrawn students, we noted five students (sample size seven, remaining two did not receive Federal Direct Loans) who did not receive exit counseling within the required time frame. Additionally, during our testing of Federal Direct Loans, there was one fall graduate in our sample; the exit counseling was not provided within the 30 days. Further inquiries of College employees indicated that spring graduates also did not have exit counseling within the 30 day requirement.
Cause:
Beginning with the fall 2023 semester, the College automated the process for providing exit counseling, however, did not consider the application of the 30 day requirement to withdrawn students.
Effect:
The College did not provide exit counseling to student borrowers who withdrew or graduated within 30 days of the institution’s knowledge of the exit.
Questioned Costs:
None
Auditors’ Recommendation:
The College should review its procedures for providing exit counseling to student borrowers to ensure compliance with DOE requirements.
Views of Responsible Officials:
The College, upon identification of this issue, immediately reviewed its procedures and made the necessary changes.