Finding Text
Criteria or specific requirement: A Direct Subsidized Loan, Direct Unsubsidized Loan, or student Direct PLUS Loan borrower who is graduating, leaving school, or dropping below half-time enrollment is required to complete exit counseling. If the student drops out without notifying the school, the school must confirm that the student has completed online counseling or mail exit counseling material to the student at their last known address. The school may also email the information to the student’s home (not school) email address if the school has it. The school may also send the student a direct link to the exit counseling materials online. Whatever method the school chooses must be used within 30 days of learning that the borrower has withdrawn or failed to participate in an exit counseling session. In addition, per the Uniform Guidance 2 CRF 200.303, non-federal entities receiving federal awards are required to establish and maintain internal controls designed to reasonable ensure compliance with federal laws, regulations, and program compliance requirements.
Condition: During our testing, we noted the University did not send notifications of exit counseling to students who graduated or withdrew during the year.
Questioned costs: None reported.
Context: During our testing of 40 students, we noted exit counseling notifications were not sent out to students during fiscal year 2024.
Cause: The University does not have a process in place.
Effect: Failure to send exit counseling notifications could result in a student not completing their exit counseling.
Repeat Finding: No.
Recommendation: We recommend the University implement procedures to ensure exit counseling notifications are sent to students who graduated or withdrew.
View of Responsible Official: The University agrees with the finding.