Finding Text
Criteria: Regulations require the Institution ensure exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate borrower shortly before the student borrower ceases at least half-time study. Exit counseling must be conducted within 30 days after the school learns the student borrower has withdrawn from school or failed to complete the exit counseling [34 CFR 685.304(b), (1) & 34 CFR 674.42(b)]. Condition: For two of two (all) student files examined where students with direct loans withdrew during FY2022, we did not find satisfactory documentation to show that the University complied with exit counseling requirements. Cause: Weak process and controls over ensuring exit counseling was noted, as well as a lack of recordkeeping to evidence exit counseling requirements were met by the University when a student fails to complete exit counseling online. Effect: For students with a break in enrollment, the University did not meet its responsibilities to provide these individuals with required exit counseling information. Questioned costs: $-0-. Perspective information: The population was the return of Title IV funds - students with Title IV assistance who officially withdrew and received all failing and/or incomplete grades. The total population (in students) was 57. A sample size of 5. The number in sample size that separated from the University and required exit counseling was 2. The number of exceptions found in the preceding column was 2. Identification of repeat findings: Yes, see FA-2021-003. Recommendation: The Financial Aid Director should review the Department of Education?s requirements of institutions related to exit counseling and implement controls to ensure those requirements are met. We recommend that the Department of Education?s Direct Loan Exit Counseling Guide be mailed to the permanent address on record for students who have separated service along with a letter informing them to read the material and perform exit counseling online as a requirement of their federal loans. The materials sent to the students should be dated and copies retained in the students? files as evidence of the University?s compliance. Views of responsible officials: See Client?s Corrective Action Plan.