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What To Do With Unclaimed Credit Balance Checks

If a student fails to pick up a credit balance check or is returned undeliverable, the check must be returned to the appropriate Title IV program.  Under no circumstances should it be remitted to an escheat fund.  A school can hold a check for 21 days for a student to pick up but if unclaimed must be mailed within 45 days.  If the check is returned undeliverable then the school can make additional attempts to locate the student but the check must be returned to the appropriate Title IV program no later than 240 days after issuance.

The school may make additional attempts to locate the student but is not obligated to any particular procedures.

The school should establish procedures to monitor credit balance checks and mail any unclaimed checks within 45 days of issuance.  The school should also establish a policy and procedure for the number and timeframe of additional attempts to contact the student.  If still unsuccessful then the check should be voided and the school should initiate a return of Title IV funds.