Finding Text
2024–002: Exit Counseling
Federal Agency: U.S. Department of Education
Federal Program Name: Federal Direct Student Loans
Assistance Listing Number: 84.268
Federal Award Identification Number and Year: P268K252088 - 2024
Award Period: July 01, 2023 - June 30, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.304 require entrance counseling be performed before disbursing loan funds to the student for Direct Subsidized Loan, Direct Unsubsidized Loan and Direct PLUS Loan to a graduate or professional student. The regulations also require exit counseling for all students who cease at least half-time study at the school.
Condition: During our testing, it was noted that an individual did not receive exit counseling after their departure from the College.
Questioned costs: None.
Context: 1 out of 40 students tested did not receive exit counseling within the required 30 days of a student ceasing attendance.
Cause: The College did not follow its policies and procedures to ensure students who departed the College received direct loan exit counseling.
Effect: Students are not receiving the proper loan counseling which may contribute to a higher default rate.
Repeat Finding: Yes, 2023-004.
Recommendation: We recommend the College review its policies and procedures around sending exit counseling information to students to ensure students are receiving proper counseling.
Views of responsible officials: There is no disagreement with the audit finding.