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Tip of the Week

July 10, 2019

The future of financial aid

In another sign that the days of paper checks are fading further into the past, the Department of Education is asking schools to help them pilot a new e-banking product for students.

In a July 8 Electronic Announcement, the Department of Education invites interested postsecondary schools to apply to participate in a Payment Vehicle Account Program pilot. According to the Announcement, the pilot provides students with a no-cost, state-of-the-art, e-banking product for receiving Title IV credit balance funds.

The Department announced last October that it intended to launch this pilot program and says that the key benefits of a Payment Vehicle Account program is that it offers students who receive federal student aid a unique, world-class e-banking product with no costs or fees (including no overdraft fees because overdrafts are not permitted). In addition, according to the Department, the program:

• allows access to all ATMs at no cost, includes features, such as mobile account controls
• enables the ability to transfer funds, provides customer service via mobile, online, phone, and email
• includes state-of-the-industry data security protections
• supports the receipt of funds from multiple sources, such as financial aid offices, employers, peer-to-peer transfers, parents, and other family members

Schools interested in participating in the pilot program should complete an online survey. Responding to the invitation does not commit a school to participate in the PVA Program pilot or commit FSA to approve a school's request to participate. The Department of Education's Office of Federal Student Aid intends to invite a limited number of schools to participate in the PVA Program pilot.

Interested schools are encouraged to submit the expression of interest as soon as possible, but no later than 5 p.m. Eastern on July 24, 2019.

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