About Refunds

• When you receive loan, grant or scholarship money, the provider will typically mail a check or transfer the money electronically to your school. The school applies the funds to your account, which typically has a balance of applicable fees, such as tuition, room and board, instructional fees and miscellaneous school expenses. If your account has a negative balance, you will receive a bill for the remainder of the fees. However, if the account has a positive balance, you may be entitled to a refund.
  
  

Obtaining a Refund

• Some schools automatically mail refund checks to students who have positive balances in their accounts. However, other schools require students to request a refund check by submitting a form to the bursar. If your school requires you to request a refund and you choose not to, the school will apply the balance in your account to the next term's cost. Most schools issue refunds using paper checks or direct deposit.
  
  

Uncashed Refund Checks

• If your school sends you a refund check and you don't cash it within a certain time, you may lose the funds. Under federal financial aid law, schools must return Title IV aid to the appropriate program if the recipient of a refund check doesn't cash it within 240 days from the day the school issues the check. Title IV aid includes Federal PLUS Loans, Federal Direct Loans, Federal Perkins Loans, Pell Grants, National SMART Grants, Academic Competitive Grants and Federal Supplemental Educational Opportunity Grants,
  
  

Considerations

• Students receive most loan, scholarship and grant refunds. However, if the refund results from a PLUS loan, the parent who signed for the loan will receive the refund check. If your school requires you to request refund checks, you typically must do so before the school charges student accounts for following term. If you don't, the school will apply the balance to the new charges.