Credit Balance Refunds
US Department of Education policy stipulates if the total of all FSA (title IV) funds credited to a student’s account exceeds the current allowable charge, the student is deemed to have a credit balance and is, by law, due a credit balance refund. Due to the nature of our costs, it is highly unlikely this will occur.
In the rare occurrence of a student whose parent borrows a very large PLUS loan and the proceeds of the PLUS loan create a credit balance, Calvin will offer the amount of the credit balance to the parent as required by law. If the parent has given written instruction, either directly to Calvin, or by way of the PLUS Loan application on studentloans.gov, Calvin will take the necessary steps to ensure the credit balance is issued to the student. The credit balance must be made available to the student no later than 14 days after Calvin received the loan disbursement.
The Financial Aid Office will work in concert with the Financial Services Office to identify students for whom a PLUS loan has disbursed.
The Financial Aid Office will evaluate an account balance statement (prepared by the Financial Services Office) for each student to see if any meet the FSA (title IV) credit balance threshold as stipulated above. At that point the Financial Services Office will communicate with the student to confirm the details of the distribution of the credit refund. Distribution options for the student are EFT into the account of their choosing or a paper check the student may deposit as desired. In the event that the student has not cashed the check after 240 days from the date of the check issue, Calvin will cease all attempts to disburse any Title IV funds represented in the check to the student and return the funds to the Department of Education in accordance with the Federal Student Aid Handbook.
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