Trends and Issues

Question of the week

Q.: Since changes in the November 1, 2007, final rules will limit the use of current-year Title IV funds for payment of minor prior-year charges to no more than $200 after July 1, 2008, what other options does a school have for resolving these situations?

A.: The regulations do not address the use of non-Title IV (i.e. state or institutional) funds to pay prior-year charges, so the school may consider the use of those funds after determining that there are no restrictions specific to the non-Title IV fund source on doing so. A school may also consider proactively contacting affected students to make them aware of the situation and the need to secure alternative means of payment of prior-year debts.

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