Title IV Credit Balance Refunds
The U.S. Department of Education policy stipulates if the total of all Title IV funds (Federal Loans and Grants) 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. In compliance with federal regulations Calvin must obtain written authorization from the student (and parents in the case of Federal Direct PLUS Loans) to allow Title IV funds (Federal Loans and Grants) to remain on the student’s account to pay for future charges. These authorizations are completely voluntary and can be revoked at any time. An Authorization to Hold Excess Funds Form is found here:
Any remaining balance on Title IV loan funds will be delivered by the end of the loan period, and any remaining other Title IV program funds, by the end of the last payment period in the award year for which they were awarded. In the rare occurrence of a student whose parent borrows a Federal Direct 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 via the Authorization to Hold Excess Funds Form 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 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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