Refund of Overpayments Policy:
- All refunds are issued to the student. Exception: If an Undergraduate Direct PLUS loan is the cause of the overpayment, PSU is federally required to issue the refund to the parent borrower. A refund check will be cut and mailed to the parent borrower (per federal regulations), unless on the PLUS loan request form the parent borrower has granted PSU permission to issue the refund to the student. Parent borrowers wishing to change which party receives the refund can do so by emailing the Financial Aid team.
- All student refunds must be requested through the online bill.
- Direct deposit is required for all refunds.(Paper checks cannot be requested. Paper checks will only be issued for federally-required Undergraduate Direct PLUS loan refunds to parent borrowers-see Exception above).
- Determine Eligibility. If you are eligible for a refund, a “Request Refund” button will appear on your online bill. Tip: You must be viewing the term that has the actual overpayment in order to see the button. If you do not have a button, your overpayment is the result of ‘Pending’ payments or a PLUS loan. If you have a PLUS loan, see the “Exception” information above under the first bullet item. Note: Your federal aid will not post to your account if you are not registered for the appropriate number of credit hours: FT students must be in at least 12 credit hours and PT students must be in the same number of credit hours they informed the Financial Aid Office they would be registered in.
- Click the “Request a Refund” button.
- Complete the online “Direct Deposit Authorization and Refund Request Form”.
- Upon clicking “Submit”, a refund entry will post to your online bill.
- Funds will be transmitted to your bank as follows:
- For UG students:
- Fall/Spring: The later of the Friday after the ADD/DROP Period or 48-72 business hours (M-F) after submitting your refund request.
- Winter/Summer: 48-72 business hours (M-F) after submitting your refund request.
- For GR students: 48-72 business hours (M-F) after submitting your refund request.
- All students please note: the refund process may be delayed by university/system closures including holiday breaks, weather, or power outages.
Note: Your bank may not make the funds available to you until the following day.
- For UG students:
- A direct deposit notification will be sent to your PSU email account after the funds have been transmitted to your bank
- Note: If after submitting your online request we determine you are not eligible for a refund, we will notify you via your PSU email account.