Finding Text
Finding 2023-002:
AL #84.268 Federal Direct Student Loans
Criteria:
The University is required to provide exit counseling to student borrowers who withdraw or graduate from the University within 30 days of the institution’s knowledge of the exit (34 CFR §685.304(b)).
Condition:
Out of a sample of nine students, our audit procedures identified seven student borrowers who withdrew during the Spring 2024 semester (eleven student borrowers out of a sample of sixteen for the year ended May 31, 2023) that were not provided with the required materials.
Cause:
For students who withdraw, the University currently has procedures in place to attempt exit counseling at the same time funds are returned to the DOE. If the students’ funds are not returned timely, exit counseling is not provided within the 30 day requirement.
Effect:
The University did not provide exit counseling to student borrowers who withdrew from the University within 30 days of the institution’s knowledge of the exit.
Questioned Costs:
None
Auditors’ Recommendation:
The University should update its procedures for providing exit counseling to ensure students receive exit counseling within the timeframe required by the DOE.
Views of Responsible Officials:
The University experienced staffing turnover in the financial aid department during the 2023- 2024 aid year, resulting in certain established processes to go unfollowed. In June 2024, the University hired a full-time outsourced staffing solution, which has added headcount and stabilized the department staffing. As of February 2025, the University has established clear roles and responsibilities so established processes are not missed going forward. Additionally, job duties have been reallocated to ensure exit counseling communications are done monthly going forward.