As students in college, you may be entitled to a college refund check. This usually happens when the money made available by the federal government for student tuition is above the required cost of tuition and any other school expense. In this case, there is excess money left to the students. So, what is college refunds check? Let me explain. Before a student knows if they can spend their college refund check two factors need to be considered below; Let us know more detail about ‘What Is College Refunds Check?’.
What Is College Refunds Check?
Firstly there are two things to note-
• Was the money for the tuition based on a scholarship, in this case, you don’t have to repay:
You may be wondering what a tuition-based scholarship is; it is not viewed as a loan but is usually granted as a result of a student’s performance academically or athletically. In this case, the student is considered eligible based on their merits and ability to accomplish great heights. Scholarships can be awarded by a school, an institution, or, a company.
• Was the money for tuition based on a financial aid/student loan, in this case, you have to repay:
Students’ loans are money granted to a student to help them pay for the furtherance of their education. It can be allotted by a government, institution, or organization. it is usually an interest and payment period allocated to it.
It is important to know that college refund checks are the excess of the funds given by the financial aid department of a school/college over your tuition. If the college refund check is a result of an excess in scholarship, then it will not be considered a loan. If the refund check results from an excess in student loan, you are required to pay it back.
The refunds can be made available to your bank account via deposits by check and you will determine how they would be used.
In both cases, you can opt to use the money to pay for any necessary financial obligations you may have like school accommodation, books, or picking up the course.
Can I Spend my College Refund Check?
The obvious answer would be a yes because it was returned to you. The question to look out for is;
‘Is this refund check an excess of student loan’ or ‘Is this refund check an excess of scholarship’ The goal is to make the best decision. If the refund check is an excess of your student loan, it would be wise to pay it back as repayment to your student loan or you can pay for any other school-related financial burden.
When Do I Receive My College Refund Check?
College refund checks are dispersed a few weeks before the commencement of the course; this is because all necessary deductions would be made before or during the commencement of the course. This can be approximately 3 to 4 weeks before the start of a college program.
How Do I Know If I Am Eligible For College Refund Checks?
In determining the eligibility for a college refund, certain factors like;
• If the student is enrolling in a full-time program/ course.
• if the student plans to stay in the school hostel
• if the student plan to subscribe to the school meal plan
• if the student is on scholarship or student loan
As a tip, you can also find out from the financial aid adviser in your school to know your eligibility.
How much of the refund Check will I be entitled to?
A college refund may vary depending on if the amount of tuition is less than the number of loans or scholarships.
What If I no longer attend classes, What Happens to the Refund Check?
Hopefully, this is not the case because time and effort have been spent on taking some courses to complete your program. However, not everything works out as we want it. There may be issues that can halt the progressive achievement of your studies beyond your control. As genuine as the case may be there are consequences to that decision. The consequences may vary depending on the grants allocated to you. Let’s list them below;
• Financial aid/ Student loan
If you took out a student loan that has a college refund check, you will be required to pay back parts of the refunded checks since you no longer take classes or you no longer continue with the college program. The amount to be refunded is calculated based on the number of classes attended subtracted from the total amount of required classes per semester. It is important to keep in mind that an excess college refund check from a student loan is not a gift or an earned money, you are required to pay it back.
Thorough understanding of the financial implications of student loan, students are advised to have a consultation with the financial aid department for more guidance.
A scholarship is generally not a loan but it also has some form of commitment attached to it. The consequences can be classified based on the college consequences and the institution that awarded the scholarship
Colleges see your scholarship as an asset, this means that whatever scholarship was awarded to you will be deducted from whatever you are owing in form of tuition, accommodation, or any other expenses accrued by you before you decided to leave college.
Institutions may have some sort of commitment attached to the scholarship; some of the commitments attached to the scholarship could be joining their institution, having access to a members-only club, getting an internship, referrals, and so many more.
In summary, opting out of college has its disadvantages except that there is a need beyond your control. It is important to keep the financial department and all necessary institutions informed so that you can make adequately informed decisions.
In conclusion, if you can spend your college refunds, it all comes down to your priorities and the goals you set up to achieve.