RE: Direct Deposit Refunds

From: Bruce Forinash (baforina@gw.fis.ncsu.edu)
Date: Mon Aug 19 2002 - 09:31:10 EDT

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    At North Carolina State (Public, Research I, 30,000 students) we made a
    major change just over a year ago by mailing all refund checks for
    students who have not elected direct deposit.

    After making sure we gave everyone due notice that the change was going
    to take place, beginning with Spring 2001 financial aid disbursement
    cycle refund checks were mailed to the student's Correspondence Address
    (generally the home address) while direct deposit refunds were sent to
    the bank via ACH the same day that checks were released. If a student
    elects Direct Deposit, they should receive the refund in their bank
    account faster than they can get the check. This encourages the student
    to elect direct deposit and eliminates the long lines in our office as
    well. For our initial Fall 2002 disbursement cycle, nearly 60% of the
    refunds were direct deposit - up from the mid-40's last year. Students
    can sign up in our office by turning in the standard ACH direct deposit
    enrollment form. The Cashier's Office manually enters account information
    from the form to a terminal and transmits to our processing bank.

    We notify students of the refund process in the Financial Aid mailings
    and include a form in that package. In addition, there is an explanation
    on our web page at http://www.fis.ncsu.edu/cashier/fadd/index.html and a
    downloadable form that can be completed and sent in. While this process
    saves some mailing cost and eliminates the headache of long lines a
    couple of times a year, the main advantage to us is improved service to
    students. Those who want direct deposit can have it, those who prefer an
    actual check understand that it will be mailed to them and can stay with
    that option if they want.

    In addition, students can check their account balance on the web. If
    they see that Financial Aid has been posted and a refund issued they know
    how much to expect, and when.

    I could go on in excruciating detail, but I'll spare you that. If anyone
    has specific questions, please let me know.

    ++++++++++++++++++++++++++++
    Bruce Forinash
    Director, University Cashier's Office
    NC State University
    2005 Harris Hall
    Campus Box 7213
    Raleigh, NC 27695
    919.515.6010 (office)
    919.515.1164 (fax)
    bruce_forinash@ncsu.edu

    >>> Will Wilkinson <willwil@regent.edu> 08/19/02 08:12AM >>>
    Please respond to the list. We are looking into doing this too, and
    any
    help to obtain this information early enough to direct deposit loan
    refunds
    would be appreciated. Do you have students provide authorization and
    bank
    information with a form they complete and return with their award
    letter?
    Or, when in the process do you get student banking information.

    Thanks,
    Will

    -----Original Message-----
    From: Vanessa L. Peoples [mailto:vpeoples@udel.edu]
    Sent: Thursday, August 15, 2002 4:28 PM
    To: bursar-l@virginia.edu
    Subject: Direct Deposit Refunds

    Currently at the University of Delaware, students may request a refund
    of their credit balances via check or direct deposit into checking or
    savings account. We are interested in trying to steer students toward
    the direct deposit option in an effort to reduce and/or eliminate the
    amount of paper checks we produce. I am looking to hear from schools
    who
    have found ways to encourage students to use direct deposit and if
    there
    are any schools who have been able to eliminate paper check refunds.

    In addition I would like to hear from schools who have developed a
    process for automatically depositing Financial Aid refunds into
    students
    bank accounts and how you collect the bank information.



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