Finding Text
2022-003 Significant Deficiency: Exit Counseling (U.S. Department of Education, William D. Ford Direct Loan Program, ALN #84.268) Criteria: In accordance with 34 CFR 682.604(a)(1), a school must ensure that exit counseling is conducted with each borrower either in person, by audiovisual presentation, or by interactive electronic means. In each case, the school must ensure that this counseling is provided or conducted within 30 days after learning that the student borrower has withdrawn from school or dropped below half-time enrollment. Statement of Condition: During the 2022 audit, it was noted that certain students who had dropped below half-time enrollment or who had left the University were not provided with exit counseling in relation to outstanding federal direct loan balances. Questioned Costs: Such information is not applicable for this finding since it is nonmonetary in nature. Perspective Information: The 2022 audit included a detailed testing of 40 student files, of which this significant deficiency applies to 7, indicating an error rate of 17.50%. Cause and Effect: Due to a process failure within the Student Financial Aid department, the University did not provide students with the required exit counseling materials related to federal direct loans, resulting in the potential that students may have been under-informed or had false expectations about their liabilities. Recommendation: The University should verify that appropriate communication is made to students leaving the University or lowering enrollment to less than half time, who also have outstanding federal direct loans balances, to provide each with the exit counseling resource. View of Responsible Officials: We now have established clear policies and procedures to correct this finding. As part of the withdrawal process, the financial aid counselors will send exit letters within the required timeframe upon receiving notification from the Office of Registration and Records that a student has withdrawn from the University. The counselors will also utilize the Daily Load Report and a series of selection sets to identify students who have dropped below halftime enrollment, and will send the exit letters as required by federal regulations. The Financial Aid Office has reviewed all students who have withdrawn or dropped below halftime enrollment status in the 2022-23 award year to ensure that exit letters were sent.