POLICY
If there is a credit balance remaining on a student’s account after all FSA funds are disbursed and obligations are paid, a credit balance refund will be generated. Credit balance refunds will be issued to students as soon as possible, but no later than 14 calendar days unless the student has authorized a credit balance hold via the Authorization Statement (Pell – cannot be held from AY to AY, Loan – cannot be held past the loan period). Refunds will be issued in the form of direct deposit or paper check. Direct Deposit is issued through QuickBooks to student who have authorized it via the Student Direct Deposit Authorization Form. If the student elects for a paper check it is mailed via the United States Postal Service to the address contained in the student’s file.
The law requires that any excess PLUS Loan funds be returned to the parent. Therefore, if PLUS Loan funds create a credit balance, the credit balance would have to be given to the parent. However, the parent may authorize the University (in writing) to transfer the proceeds of a PLUS Loan to a student directly including to a bank account in the student’s name.
PROCEDURE
Once federal funding has been initiated in G5 and the University has a Disbursement Batch Report from Campus Ivy, the Bursar will verify and approve the Disbursement Batch in Populi and then post to the student accounts in both Populi and QuickBooks. Within each student account record, the financial tab will then indicate any credit balance due to the student. The Bursar will initiate an aid refund in QuickBooks to record the credit balance refund due. The student’s account in Populi will also be updated to include whether the refund was made via direct deposit or check with check number.
The Bursar will issue credit balance refunds to students as soon as possible, but no later than 14 days unless the student has authorized a credit balance hold via the Authorization Statement. Students with a current credit balance hold will have a tag in Populi indicating this status.
If the disbursement is made by check, it is also reviewed by the Director of Administration before signing. If a check sent to a student or parent is not returned to the institution but is not cashed, the institution must return the funds to the Secretary no later than 240 days after the date it issued the check. Check records are reviewed every 30 days to monitor check cashing. After 60 days of not cashing the check, the student or parent is contacted by the Bursar.
Student disbursement and credit balance records are double-checked with the financial aid records for accuracy and then filed. All credit balance refunds are reviewed by the Director of Finance.