Paying Credit Balances
General Information
United States University’s policy on paying all Student Credit Balances is modeled after the policies and regulations governing credit balances from the Department of Education. A Title IV credit balance occurs whenever the University credits Title IV program funds to a student’s account and those funds exceed the student’s charges. Any subsequent disbursements will be held to cover those charges for a student with an account balance within the same academic year/loan period. The University can also hold up to $200 for any prior academic year charges.
Title IV funds consist of federal student aid awarded from programs administered by the U.S. Department of Education. Title IV funds include:
- Direct Subsidized Loan
- Direct Unsubsidized Loan
- Federal Pell Grant
- Direct Plus Loan
Paying Student Credit Balances
All applicable Title IV credit balances will be automatically processed and posted to the student’s account as soon as possible but no later than 14 days after:
- The date the balance occurred on the student’s account if the balance occurred after the first day of class of a payment period, or
- The first day of classes of the payment period if the credit balance occurred on or before the first day of class of that payment period.
To lower fraudulent activities, a paper check will be mailed to the student’s home address on file with the University. The student is the only individual authorized to take ownership of the check. The only exception is for student accounts with Parent PLUS loans. During the Parent PLUS loan application and approval process, the parent can select themselves or the student to receive the refund. If the parent selects themselves to receive the credit balance, a paper check will be mailed to the address listed on the original loan application.
If United States University loses contact with a student or parent who is due a Title IV credit balance, the school will return the credit balance to the appropriate federal student aid program.
Outstanding Checks
Stale Dated
Checks are only valid for 90 days after the issuance date. Checks still outstanding after 90 days will be voided. The university will attempt to contact the student for the next 30 days for an updated address. If the student does not respond, the funds will be returned to the federal student aid program.
Returned Check
If the United States Postal Service returns a check undeliverable, the university will void the original check and attempt to contact the student for the next 30 days for an updated address; if the student does not respond, the funds will be returned to the federal student aid program.