New Education Department regulations at a glance
If you are considering streamlining refund delivery, enhancing student services and reducing expenses, now is the time to act because the U.S. Department of Education has validated and encouraged the use of bank debit cards for refund delivery.
- Institutions can establish a policy for e-delivery of refunds.
- A default process ensures that a check, electronic funds transfer or a return of funds occurs by the 21st day.
- You must gain consent from student for terms and conditions.
- There can be no cost to the student to open the account or receive the first debit card.
- You must provide for convenient and free access to ATMs on campus or adjacent to campus. (Does not apply to distance education learners)
- Students must be able to use the card widely. (i.e., it cannot be limited to particular vendors)
- You may not market or portray the card as a credit instrument.