May an institution use stored-value cards for paying Title IV funds to students?
A18. Yes. An institution may use stored-value cards as a way to make direct payments to students (such as credit balances and Federal Work Study (FWS) wages). Q19. Who issues stored-value cards and how are the cards funded? A19. Typically, an institution enters into an agreement with a bank under which the bank issues stored-value cards directly to students identified by the institution. In a payroll or credit balance transaction, the institution electronically transfers funds to the bank on behalf of a student and the bank makes those funds available to the student by increasing the value of the card. Since the funds are transferred from the institution’s account to the bank, so long as the institution cannot recall those funds to pay other charges for the student without the student’s written permission, the transaction would be equivalent to paying the funds directly to the student. Q20. Since the cash management regulations do not specifically identify stored-value cards as a metho
Related Questions
- Can a school disburse Title IV funds to students in a program which is more than 150% the minimum length of training required to sit for the state licensing examination?
- When may the school round dollar amounts used in the return of Title IV funds to the nearest whole dollar?
- How do we find the private schools to notify them of our intent to apply for Title IV funds?
