Finding Text
FINDING 2022-002 ? Federal Direct Loan Exit Interview 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 ($6,877,168) Award Number: P268K222030 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $-0- 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 graduated from the University. This omission occurred for one of the sixty students in our sample. Criteria: Federal Direct Loan recipients must receive exit interview counseling. If in-person counseling is not completed, the University may mail written counseling materials to the student?s last known address. Cause: Federal Direct Loan exit counseling was not provided when the student withdrew from the University at the end of the spring semester. This was an oversight on the part of the financial aid office staff. 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 a similar finding in the prior year related to sending a TEACH Grant exit interview. See prior year Finding 2021-002. 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 ceases attendance at the University. Management Response: Federal Direct Loan exit interview information was sent to the student in question on August 3, 2022. Procedures will be improved to ensure Federal Direct Loan exit interviews are completed or information is sent to students when they cease enrollment at the University.