The Department of Education
recently adopted revisions to its Title IV Higher Education Act (HEA) cash
management rules that include new restrictions on financial products used to
disburse credit balance funds to students. Credit balances result when the
amount of Title IV HEA program funds credited to a student’s account exceeds
the amount of tuition and fees, room and board, and other allowed charges. The
rule impacts certain agreements between universities and financial
institutions, including by requiring public disclosure of relevant cost
information in some instances.
While
the final rule becomes effective July 1, 2016, the mandatory compliance date
for certain provisions is delayed beyond 2016.
Our complete final rule summary is available here.