Finding Text
2023-004: Eligibility: Exit Counseling
Federal agency: U.S. Department of Education
Federal program title: Student Financial Assistance
ALN Number: 84.007, 84.033, 84.063, 84.268, 84.379
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: July 1, 2022 through June 30, 2023
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: Per 34 CFR 682.604, states that a school must ensure that exit counseling is conducted with each Stafford Loan borrower and graduate or professional student PLUS Loan borrower either in person, by audiovisual presentation, or by interactive electronic means. In each case, the school must ensure that this counseling is conducted shortly before the student borrower ceases at least half-time study at the school.
Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements.
Condition: The University did not properly have documentation of exit counseling notification.
Questioned costs: None.
Context: During our testing of 40 students, we identified 6 students that did not have documentation of exit counseling notification.
Cause: The University did not have proper procedures in place to ensure that notification of required exit counseling was sent to applicable students.
Effect: Exit counseling helps federal student loan borrowers understand how to repay their loans and reviews deferment and repayment plans options. If students are not notified of exit counseling, they could be at risk of not understanding their rights and responsibilities regarding loan repayment.
Repeat finding: No.
Recommendation: We recommend the University review reporting processes to ensure all students that require exit counseling receive it in a timely manner.
Views of responsible officials: There is no disagreement with the audit finding.