Finding Text
Federal Assistance Listing Number: 84.268 Federal Direct Student Loans Criteria: Per 34 CFR 682.604(a), a school must ensure that exit counseling is conducted with each Stafford Loan borrower and graduate or professional student PLUS Loan borrower either in person, by audiovisual presentation, or by interactive electronic means. If exit counseling is conducted by electronic interactive means, the College must take reasonable steps to ensure that each student borrower receives the counseling materials, and participates in and completes the counseling. Condition: For 9 out of the 40 students tested, the College did not send an exit counseling package or otherwise take reasonable steps to ensure that the exit counseling materials were received for students who had received Direct Loan disbursements. Cause: The financial aid department at the College experienced staff turnover during the year which resulted in the College not conducting required communications for exit counseling in a timely manner for certain students. Effect: The College is not in compliance with the federal regulations regarding Direct Loan exit counseling communications to students. Prevalence: There was no exit counseling package sent to students who received Direct Loan disbursements and graduated in May 2025. Upon discovery, exit counseling guidance was sent to the students on October 1, 2025. Recommendation: The College should enhance their control processes to ensure that all Direct Loan exit counseling communications are conducted in a timely manner. Management’s Response and Planned Corrective Action: Management identified the issue on September 23, 2025 and exit counseling packages were sent on October 1, 2025. The issue resulted from staff turnover during the year. Upon discovery, management promptly updated procedures, including adding calendar reminders to avoid such missed occurrences going forward.