Finding Text
Finding 2022-001 ? Special Tests and Provisions: Exit Counseling (Material Weakness and Noncompliance) Information on the federal program: U.S. Department of Education Student Financial Aid Cluster Criteria: 34 CFR part 685.304 requires an institution to ensure that 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 at the school. Condition: We selected a sample of 25 students who withdrew from the College. Fourteen of these students received a loan during the year or during their career at the College. Out of the 14 students, none of the students had documentation of exit counseling on file. In addition, we selected a sample of 21 students who graduated during the fiscal year with loans. Of those 21, six students did not have documentation of exit counseling on file. Cause: The College relied on a monthly automated process to email students whose enrollment fell below half-time. The process had been running with the wrong parameters during the year and was not corrected until after the fiscal year end. Effect: The College was not in compliance with exit counseling requirements for students who graduated or withdrew from the College. Recommendation: We recommend the College strengthen its policies and procedures surrounding the withdrawal process and graduation process to ensure compliance with exit counseling requirements. Views of Responsible Officials: See Management?s View and Corrective Action Plan included at the end of the report.