Federal Regulations – Cash Management

In an effort to protect students and insure their best interest, the U.S. Department of Education published new cash management regulations (34CFR668.161-167) via the Federal Register on October 30, 2015.  The Program Integrity and Improvement rules require the University of Northern Kentucky to maintain, account, and disburse Federal Title IV funds in accordance to these regulations.  In addition, refunding credit balances associated with Federal Title IV should always be in the best interest of the student.  This webpage is published to comply with these regulatory reporting requirements.

On July 1, 2016, Northern Kentucky University (NKU) entered into a campus card contract agreement with US Bank.  The agreement, and subsequent amendments, do not include services for handling student related Title IV credit balance refunds.  However, since many NKU students bank with US Bank, the U.S. Department of Education requires that NKU publish the contract for public review by September 1, 2016.

Students DO NOT have to have a bank account with US Bank to receive their refund via direct deposit (ACH).

Students are provided the choice to have any overpayment of charges which results in a credit balance deposited into their bank checking account or to have a refund check mailed to them.

For additional information about the refund process, click here: /content/inside/studentaccountservices/refunds.html.

Northern Kentucky University encourages student to shop around to find a banking partner that fits their financial situation and needs.  A good place to start is checking out Bankrate  (http://www.bankrate.com).

Student Banking Costs with US Bank

Award Year Ending June 30, 2017

US Bank

Under Department of Education regulations 34 CFR 668.164(e)(2)(vii), e(2)(viii), (e)(3), (f)(2)(ii),  (f)(4)(iv), (f)(4)(v), and (f)(5), the university is required to publish on its website contract data on the consideration paid or received in connection with a financial institution or entity that offers financial accounts through a financial institution under which financial accounts are offered and marketed directly to students. The university is also required to publish the number of students and the mean and median student costs. For the most recently completed award year the university and US Bank, had this type of relationship.  The information required under the regulations is posted below.

ID Linking Method w/Two-year co-hort

2016-2017 Award Year

Number of students with financial accounts

 

      259

Mean

     $43

Median

      $2

Total Monetary consideration Paid to the University

 

   $ 80,000

 

US Bank Student Checking Account Fee/Fact Sheet

https://www.usbank.com/student-banking/student-accounts-and-cards/student-checking.html

NKU/US Banking Services Contract

NKU-US Bank Banking Services Contract with Amendment

 US Bank DOE Data sheet for T2 schools 2016-2017 Financial Summary

https://inside.nku.edu/content/dam/allcard/Docs/US%20Bank%20DOE%20Data%20for%20T2%20Schools%20-%20NKU.pdf