Finding Text
Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: Various Award Period: October 1, 2024 through September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 682.604, states that institutions must ensure that exit counseling is conducted with each Stafford Loan borrower and graduate or professional PLUS Loan borrower in person or by interactive electronic means. The exit counseling must inform the student of the various repayment options. Condition: During our testing, we noted one of the 40 students did not have completed exit counseling procedures on file. Questioned Costs: None reported Context: During our testing, it was noted the University stated they performed the procedures verbally and did not retain written documentation. Cause: The University’s processes and controls did not ensure that exit counseling procedures were appropriately documented. Effect: The University did not comply with Department of Education (ED) regulations by failing to complete exit counseling for this student. Repeat Finding: No Recommendation: We recommend the University review its controls around exit counseling procedures to ensure that all students who withdrew or graduated with a Stafford or PLUS loan had exit counseling performed for them and appropriate documentation is retained. Views of Responsible Officials: There is no disagreement with the audit finding.