Finding Text
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Aid Cluster
Assistance Listing Number: 84.268
Federal Award Identification Number: P268K241946
Award Period: July 1, 2023 – June 30, 2024
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.304 requires
entrance counseling be performed before disbursing loan funds to the student for Direct Subsidized
Loan, Direct Unsubsidized Loan, and Direct PLUS Loans 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 individuals did not receive exit counseling.
Questioned Costs: N/A
Context: All thirteen students in our sample who either ceased at least half-time study or left the
University, did not receive exit counseling.
Cause: The University did not follow procedures to ensure students who left the University received
exit counseling.
Effect: Students may not fully understand their repayment obligations, leading to higher default rates
on student loans. This can negatively impact the University’s cohort default rate, potentially resulting in
sanctions or loss of eligibility for federal financial aid programs.
Repeat Finding: No
Recommendation: We recommend the University review its process around sending exit counseling
information to students to ensure this information is received and the University is performing required
procedures.
Views of Responsible Officials: There is no disagreement with the audit finding and the University is
in the process of implementing corrective procedures.