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My last email ended with a postscript about the U.S. Department of Education’s intent to form a Negotiated Rulemaking Committee. They are holding public hearings this month on how to reduce fraud and how to regulate the use of debit cards and bank products in the financial aid disbursement process. It seems the Department is following the money “downstream” from student loans to student refunds in reaction to growing unrest with fees and other business practices of concern. Here’s how they put it:

“We intend to convene a committee to develop proposed regulations designed to prevent fraud and otherwise ensure proper use of Title IV, HEA program funds, especially within the context of current technologies. In particular, we intend to propose regulations to address the use of debit cards and other banking mechanisms for disbursing Federal Student Aid funds. In addition, we intend to propose regulations to improve and streamline the campus-based Federal Student Aid programs.”

The process of convening a committee begins with public comments. It is important they hear from people in the trenches about what should be best practices for electronic refunds. If you could wave a magic wand, how would the financial aid disbursement process work? In particular, how should debit cards and banking products be included in the mix with ACH/Direct Deposit options? You can submit your written comments to the Department of Education until May 31st; just click here and complete the form. You can also present your comments verbally at one of two public hearings scheduled for May 23rd in Phoenix, AZ, and May 31st in Washington, DC.

I will be presenting my thoughts in Washington on the 31st. I’ll be talking about our “4 for IV Framework” for student-friendly Title IV refunds. Learn more about the framework and other important information in the new TouchNet Knowledge Center: www.touchnet.com/followtheDOE. Things are moving fast; May 31st is just next week! Now is the time to speak up on student refunds. This could impact the way we do business for years to come.

PS: The TouchNet Knowledge Center also has a recording of our 20-minute Webinar, “Speak up on Refunds,” which was broadcast on May 16th.