Finding Text
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Direct Student Loan Program ALN and Program Expenditures: 84.268 ($154,808) Award Number: P268K233976 Federal Award Year: July 1, 2022 to June 30, 2023 Questioned Costs: None Condition Found: A Federal Direct Loan exit interview was not completed by nor were instructions sent to the student on how to complete an exit interview when the student dropped to a less than half-time enrollment status. This omission occurred for one of the twenty-five students in our sample. Criteria: Federal Direct Loan recipients must receive exit interview counseling when the student graduates, leaves the institution, or drops below a half-time enrollment status. If in-person counseling is not completed, the school may mail written counseling materials to the student’s last known address. Cause: The financial aid office was unaware of the requirement to send an exit interview to a student who drops below half-time enrollment status. Possible Asserted Effect: The student was not aware of his or her responsibilities related to the Federal Direct Loan program, including repayment options and when repayment on the loan begins. Repeat Finding: There was not a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: Federal Direct Loan exit interview information should be sent to the student in question. Procedures should be improved to ensure that Federal Direct exit interviews are completed or information is sent to a student when a student drops below half-time attendance. Management Response: Federal Direct Loan exit interview information was sent to the student in question on October 27, 2023. Procedures will be improved to ensure Federal Direct Loan exit interviews are completed or information is sent to students when they drop below a half-time enrollment status at the School.