Information on the Federal Program: Federal Direct Student Loan Program (CFDA Number 84.268) – U.S. Department of Education
Criteria: 34 CFR 685.304(b)(1)
A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school.
Condition and context: Out of a population of 127 graduated students, we sampled 17. Out of this sample, the University failed to correctly notify 6 students of exit counseling.
Cause: The University did not have a control in place to ensure exit counseling notifications were sent to graduating students timely.
Effect: The University is not in compliance with Title 34, Section 685.304 with respect to the referenced graduated students.
Recommendation: We recommend that the University establish controls to ensure that exit counseling notifications are sent prior to the date of graduation.
Management Response: The University concurs with the finding. The University is currently utilizing the Banner Optimization to develop a message alert within the Student Portal (Wired) when a Graduation Fee is charged. This will be fully functional in FY25.
104.