Finding Text
Eligibility – Direct Loan Entrance Counseling
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
ASSISTANCE LISTING Numbers:
84.268 – Federal Direct Student Loans
Federal Award Identification Number and Year: P268K240362 2024
Award Period: June 1, 2023 to June 30, 2024
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter
Criteria or specific requirement: As outlined under 34 CFR 668.164(l), an institution is required to ensure entrance counseling has been performed before disbursing Direct loan funds to the student for Direct Subsidized Loan, Direct Unsubsidized Loan and Direct PLUS Loan to a graduate or professional student.
Condition: During our testing, one of the 40 students selected for testing did not receive entrance counseling prior to receiving their first Grad PLUS Direct Loan Disbursement.
Questioned costs: Federal Direct Student Loans - $3,381.
Context: Out of our population and sample of 40 students, the University did not document 1 student’s entrance counseling completion.
Cause: The University’s processes and controls did not ensure that entrance counseling was completed or did not retain proper support to indicate this process took place.
Effect: Students are not receiving the proper loan counseling which may contribute to a higher default rate.
Repeat finding: No
Recommendation: We recommend the Institute review its policies and procedures around sending entrance information to students to ensure students are receiving proper counseling and ensure entrance counseling is documented before loans disbursements are made.
View of responsible official: The University agrees with the finding.