Finding Text
Finding 2023-002:
AL #84.268 Federal Direct Student Loans.
Criteria:
Pursuant to regulations established by the DOE, the University is required to provide exit counseling to student borrowers who withdraw or graduate from the University within 30 days of the institution’s knowledge of the exit (34 CFR § 685.304(b)).
Condition:
Student borrowers who left during or after the fall semester had not yet been provided with the required materials as of the start of our audit procedures in May 2023.
Cause:
Turnover in the Student Financial Aid Office resulted in the reallocation of job duties and the University’s process for identifying students needing exit counseling to go unfollowed.
Effect:
The University did not provide exit counseling to student borrowers who withdrew or graduated from the University within 30 days of the institution’s knowledge of the exit.
Questioned Costs:
None
Auditors’ Recommendation:
The University should provide necessary training as they experience significant turnover to ensure procedures for providing exit counseling to student borrowers are being followed and to ensure compliance with DOE requirements.
Views of Responsible Officials:
The University experienced staffing turnover in the financial aid department during the 2022-2023 aid year, resulting in certain established processes to go unfollowed. In March 2023, the University hired a full-time on campus Director of Financial Aid, which has stabilized the department staffing. The Director has established clear roles and responsibilities so that established processes are not missed going forward.