Can my school really hold my refund because of an old balance?

Hey everyone… I took some summer classes in June 2024 and now I have a balance of $5,010. I’ve also taken out a loan for the 2024-2025 school year and was expecting a refund of around $2,000. The school initially told me my balance wouldn’t affect the refund, but when I called today, they said they can’t give me my money because of that summer balance. I read that they can only hold funds for two weeks unless they get permission to hold it longer. Is it even legal for them to keep my refund because of this old balance? Anyone have similar experiences?

That sounds really messed up! Did they explain why they’re holding it now?

Remy said:
That sounds really messed up! Did they explain why they’re holding it now?

It’s wild that they changed their tune! They should be clear about their policies.

Remy said:
That sounds really messed up! Did they explain why they’re holding it now?

Exactly! You deserve clarity on this.

I had a similar issue with my school. They held my refund too, but it was documented. Did you get anything in writing?

Zhi said:
I had a similar issue with my school. They held my refund too, but it was documented. Did you get anything in writing?

What kind of documentation should I look for?

Zhen said:

Zhi said:
I had a similar issue with my school. They held my refund too, but it was documented. Did you get anything in writing?

What kind of documentation should I look for?

Any official notice that explains why they’re allowed to hold it. It’s good to have that if you need to argue your case.

It’s so annoying! They shouldn’t just hold your money without a good reason.

Hadi said:
It’s so annoying! They shouldn’t just hold your money without a good reason.

Right? They need to be more accountable for their decisions!

I’d definitely bring up the fact they said it wouldn’t be a problem before. That’s a solid point for you!

West said:
I’d definitely bring up the fact they said it wouldn’t be a problem before. That’s a solid point for you!

For real! Keep track of those conversations; it’ll help your case.

Sounds like you should send them a formal demand letter. It might speed things up!

Thorne said:
Sounds like you should send them a formal demand letter. It might speed things up!

Good idea! A letter can show you’re serious about getting your refund.