Student Refunds & Credit Balances
Definitions and General Information:
- A credit balance occurs when the total credits posted to a student's account (e.g., payments, loan disbursements, scholarships, etc.) exceed the total charges to the account for a specific term.
- A credit balance eligible for a refund is one where all the applicable charges and credits have been posted to the account and the student’s eligibility for such funds has been reviewed and confirmed or adjusted based on current eligibility, enrollment or any other applicable conditions.
- Anticipated funds, including anticipated financial aid, are not considered credits to a student's account until the funds have actually been posted to the account.
- Accounts of students on a Payment Plan are not eligible for a refund unless the Payment Plan has been completed and paid in full, and payments exceed the applicable charges.
- Wake Tech does not hold credit balances on account for use in a future term.
- If a refund is issued and subsequently a balance is created in the student’s account, it is the student’s responsibility to return the funds to Wake Tech. A hold will be placed on the student’s account until paid in full.
- Credit balances may be related to payments from several sources, including from personal funds; Title IV Federal Student Aid; and non-federal aid funds, such as private loans and grants, and other external awards.
- Wake Tech’s policies and procedures for handling student account credit balances adhere strictly to federal and other regulatory requirements, as applicable, and vary depending on whether a credit balance is related to federal aid funds or not.
Common Reasons/Causes for Credit Balances
- Withdrawal: If a student withdraws from any or all classes, the level of Federal Student Aid (also known as Title IV funds; for example, Direct Loans, Plus Loans, and Pell Grants) awarded, or earned, may need to be recalculated by the school’s financial aid office. Depending on the situation, funds may need to be returned to the federal source or refunded to the student. The amount of federal aid that may need to be adjusted and the pro-ration of the tuition, if any, is based on the date of withdrawal.
- Credit balances may also be related to and affected by changes in a student's enrollment status during a term. This includes changes to expected enrollment status prior to a term, including non-enrollment; changes to academic workload (Add/Drop) that affect federal or other aid eligibility; or withdrawal.
- If a student's enrollment status changes as a result of adding or dropping classes, the student's federal aid award may need to be adjusted and this may affect the amount of any refunds.
Credit Balance and Refunds Due to Federal Financial Aid
- For students who have a credit balance and are recipients of Title IV federal aid, the level of aid awarded may need to be recalculated by the school's financial aid office depending on the specific situation.
- Wake Tech will credit Title IV federal aid funds to a student's account only against allowable institutional charges, including:
- Current charges for tuition and fees
- Other educationally related charges incurred by the student at the College (i.e bookstore) with written authorization (provided at time of purchase at bookstore)
- Prior-year charges, up to and not exceeding $200 with written authorization (provided in Financial aid terms and conditions)
- Wake Tech will automatically issue refunds for eligible credit balances related to Title IV Federal Student Aid funds.
- Wake Tech processes and posts financial aid to student accounts after the beginning of the term. Any credit balances related to Title IV federal aid funds will be refunded no later than 14 days after the date the credit balance has posted on the student's account, per federal regulations.
Credit Balance and Refunds Due to Non-Federal Student Aid and Other Reasons
- If a student or parent overpays the student's account, related credit balances will be refunded to the student, regardless of the source of the payment.
- If a credit balance on a student's account is related to non-Title IV Federal Student Aid funds (for example, external awards, such as scholarships, grants, or private loans) the credit balance in the account may be reduced, may be returned to the source, or may be refunded to the student, depending on the specific situation and the conditions of the award.
- If a credit balance on a student's account is related to payments by a third party sponsor for whom Wake Tech has billed, the credit balance may be sent to the sponsoring organization, depending on the conditions of sponsorship.
Disbursement of Credit Balances and Refunds
Refunds are disbursed via BankMobile for both Federal and Non-Federal student refunds. For the quickest release of your funds, a student should designate a refund preference selection prior to the refund disbursement. The refund preference options are:
- Electronic Deposit To Another Account (ACH Transfer)
Funds are transferred to another bank account designated by the student. If this option is selected prior to funds disbursement, the funds will transfer the same business day BankMobile receives funds from Wake Tech. Typically, it takes 1-2 business days for the receiving bank to credit the money to your account.
- Electronic Deposit To a BankMobile Vibe Account
If you select this option, you would open a BankMobile Vibe account (upon identity verification). If the account is open and this option is selected prior to refund disbursement, the funds will be deposited the same business day BankMobile receives funds from Wake Tech.
- If you do not select your refund preference and you are receiving a Federal Financial Aid refund, BankMobile will mail a check to the address on file within 20 days.
- If you do not select your refund preference and you are receiving a non-Federal student aid refund, the funds will be returned to Wake Tech in 210 days. The College will then attempt to send the funds to the student via check and US mail.