Refund checks confuse students

After 970 students received an e-mail alerting them to an incoming refund check, their excitement was short lived. The e-mail also noted that the amount of the refund check was owed to the university.

Due to the mismanagement of refund checks during the 2008-09 academic year, and possibly years before, 970 students received an excess amount of aid which was carried forward from quarter to quarter.

To correct the problem and create a zero balance, the financial aid department took
immediate action. And there is nothing wrong with how the department reacted.

All higher education institutions are required by federal regulations to issue refund checks if a student’s account is in excess. Regulations also prohibit institutions from participating in “carry-forward” practices. Although financial aid is awarded for an entire year, it might only be distributed and applied in current and past academic terms – never in future terms.

The financial aid department came across this issue after hiring an independent compliance officer who eventually made the discovery. The department decided to e-mail all of the students who fell under the category of having aid carried forward before the money was sent.

To the department, it seemed most students understood the message in the e-mail. After all, students are not losing money, simply returning it to create a zero balance with the university. The compliance is a one-time occurrence that should put everyone back on track.

“In order for me to comply with federal regulations, I cut a refund check,” said Ken Wolterman, bursar of the cashiers, collections and student accounts office. “That rippled through and gave the student a $1,000 balance. I’m bound by federal regulations to give them that money. I can’t just take that check and apply it to your bill without you knowing.

“Otherwise it could be construed as coercion,” he continued. “So we give them the $1,000 check and the only thing I can do is prevent you from enrolling again.”

Yet, students who did not fully comprehend the message made a visit to OneStop in University Pavilion or e-mailed the administration.

The department reacted appropriately by letting students know what was expected of them before the checks were sent. Yet, the root of the problem still seems unclear.

The university should have never made the decision to carry forward any amount of financial aid, as that decision is purely the students’. 

The timing of the compliance act was selected to avoid stress and confusion, which is another point on the tally board for the university. In addition, many students’ questions and concerns were addressed personally.

From a realistic standpoint, the university reacted appropriately and in a timely manner. Although the message confused several recipients, the act of compliance is successful.
Maybe OneStop should have made a YouTube video resmembling a simple show like “I’m Just a Bill” from “School House Rock” to better explain it to us.