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Refund Management

Students today want more options when it comes to their refunds, and institutions are looking for disbursement methods that limit students’ exposure to fees. In addition, the increased scrutiny and mounting regulatory pressure regarding student refunds disbursement is creating an even greater need for higher ed leaders to reexamine the refund processes at their institution.

10/22/2015

Students today want more options when it comes to their refunds, and institutions are looking for disbursement methods that limit students’ exposure to fees. In addition, the increased scrutiny and mounting regulatory pressure regarding student refunds disbursement is creating an even greater need for higher ed leaders to reexamine the refund processes at their institutions.

The Student Aid and Fiscal Responsibility Act (SAFRA), passed in May 2010 as part of the Healthcare Reform Act, was an attempt to rein in the student loan industry and save money by taking private lenders out of the equation. But a year later, educators, parents, and legislators are asking, is the program delivering on its goals?

 

There are 18 million college students, 40 percent of whom receive federal financial aid every spring and every fall. The average student, after class drops and other adjustments, gets 2.5 refunds totaling $1,300. That's a lot of money and a lot of transactions that have to be made according to a stringent set of regulations.

We have written before about the importance of considering your institution's market position relative to competitors when planning future price increases. When sticker price position is higher than "prestige" position (based on publicly available measures like test scores, U.S. News rank, and selectivity) institutions often see declining demand.

"It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness.

Charles Dickens penned the opening lines of "A Tale of Two Cities" to describe French Revolutionary times, but they could easily apply to the modern world of student refunds. Or, more specifically, to two of the primary alternatives to paper checks.

One is simple, secure and smart. The other can be convoluted, controversial and painful for students.

Charles Dickens penned the opening lines of “A Tale of Two Cities” to describe French Revolutionary times, but they could easily apply to the modern world of student refunds. Or, more specifically, to two of the primary alternatives to paper checks. One is simple, secure and smart. The other can be convoluted, controversial and painful for students.

Blinn College has been in the business of educating students since 1883, a point of pride for its administrators. Even as it honors its pioneering roots, the college also has evolved to meet the needs of students. Founded initially to train young men for the ministry, Blinn became the first county-owned junior college in Texas and one of the largest of the state’s 50 community/junior college districts.

Blinn College has been in the business of educating students since 1883, a point of pride for its administrators. Even as it honors its pioneering roots, the college also has evolved to meet the needs of students. Founded initially to train young men for the ministry, Blinn became the first county-owned junior college in Texas and one of the largest of the state’s 50 community/junior college districts.

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