Finding Text
Timely Exit Counseling Notification Information on the Federal Program: Federal Direct Student Loan Program, AL Number 84.268 (Student Financial Aid Cluster) – U.S. Department of Education Criteria: Per 34 CFR 685.304(b), a school must ensure that Direct Loan borrowers receive exit counseling when they cease to be enrolled at least half-time. The school must ensure that exit counseling is provided within 30 days after the school learns that the student has withdrawn or otherwise ceased to be enrolled at least half-time. Condition: The withdrawal report generated during the leave of absence taken by the Registrar at the end of 2025 excluded students whose withdrawal forms were submitted between the last day of the Fall 2025 term and the first day of the Winter 2026 term. This resulted in these students not being notified within 30 days of the requirement to complete exit counseling. This impacted 4 students. Questioned Cost: $0 Cause: The University did not have adequate procedures or review controls to ensure that reports used to identify students requiring exit counseling notifications included all students who withdrew or otherwise ceased to be enrolled at least half-time. In addition, sufficient backup procedures were not in place during the Registrar’s absence. Effect: Four students did not receive timely notification regarding exit counseling. As a result, the University did not comply with the required timeframe for providing exit counseling notification to affected student borrowers. Recommendation: We recommend that the University update its exit counseling procedures to ensure that all students who withdraw or otherwise cease to be enrolled at least half-time are identified and timely notified of the exit counseling requirement. The University should implement controls to validate the completeness of reports used for this purpose and establish backup procedures and review controls when key personnel are unavailable. Views of responsible officials and planned corrective actions: The University concurs with this finding and will implement oversight procedures to ensure that all students who withdraw or otherwise cease to be enrolled at least half-time are identified and timely notified of the exit counseling requirement.