Colleges Offering the Largest Student Loan Refund Checks

What Is a Student Loan Refund Check?

In this article, we’ll discuss the colleges that offer the largest student loan refund checks. Then, we’ll discuss how these work, their pros and cons, and tips for using them well.

What is a student loan refund check in the first place? This is extra funds from your student loan after college costs have been paid. College costs refer to tuition and fees, housing, and other required costs.

The leftover or remaining funds are yours to keep or return as you please. You have complete control over its use, too.

But remember that, unlike scholarships and grants, it isn’t free money. Since it’s still part of your student loan, you’ll repay it in the future.

How Do Student Loan Refunds Work?

Colleges with the highest refund checks have different policies and procedures. You must then work with your college’s financial aid office for your refund. Doing so means you can make informed decisions, such as whether to accept or return it.

Related Articles:

• What Is A Student Loan Refund and What Can I Do With It?
• What Happens When Financial Aid Exceeds or Falls Short of Tuition?
• The Role of Scholarships in University Payment Plans
• Do Payment Plans Affect Financial Aid? What You Need to Know

Basic Step-by-step Guide on Student Loan Refunds

In general, nonetheless, this is how student loan refunds work.

1. You apply for federal and/or private student loans.

You can borrow student loans more than your direct costs and on-campus housing. Then, when you’re approved for the loan, you must accept it.

2. Your college applies your student loan to your account first.

The costs of attendance that you owe to your college are:

• Tuition
• Mandatory fees
• On-campus room and board

The remaining balance after these charges have been paid is your student loan refund.

3. Your student loan refund is disbursed.

The college (if it’s a federal loan) or loan servicer (if it’s a private loan) will send you a notification. The leftover fund will be yours when it’s:

• Directly deposited into your bank account
• Mailed to your home or campus address via a paper check in your name
• Loaded into a prepaid debit card (less common method)

Again, you can use the money as you wish.

Here’s an instance where a student loan refund happens. You borrowed $10,000 for your tuition and fees, but the actual amount after scholarships was only $8,000 for the semester. You may receive $2,000 in student loan refund.

FAQs on Student Loan Refunds

1. When will you get your refund check from student loans?

Ask your college about its refund schedule so you can track your money. If there’s none, refunds are usually processed 7-14 days after the start of classes.

2. Why do student loan refunds happen?

You can receive a student loan refund when:You applied for a student loan higher than your cost of attendance.Your scholarships covered a significant part of your tuition, fees, and on-campus housing.

You’ve made changes in your enrollment status. Examples include dropping courses, withdrawing, and switching from full-time to part-time status.

In general, low cost of attendance can result in large student loan refunds.

3. What should you do if you get a student loan refund?

Again, you can receive it and do with as you wish or return it.

Colleges Known for Large Student Loan Refund Checks

Western Governors University

Average Tuition: $8,010/year

WGU uses a competency-based learning format that enables students to save on tuition. The affordable tuition plus the ability to borrow federal loans results in large financial aid refunds for college students. WGU is especially attractive to working professionals and adult learners.

Southern New Hampshire University

Average Tuition: $17,200/year

Many students qualify for federal loans and the Pell Grant. Since SNHU also offers scholarships, many students can receive refunds. SNHU is a private university.

Purdue Global

Average Tuition: $371/credit for online undergraduate programs

Students can access generous financial aid that further reduces their cost of attendance. Many students receive large tuition refund checks for this reason. Purdue Global is the online university of Purdue University, a respected public institution.

Penn Foster College

Average Tuition: Varies depending on the program

Self-paced programs charge $79/month, among the lowest in for-profit online colleges. The combination of low tuition, scholarships, and loans usually results in leftover student loan money. Penn Foster College emphasizes career programs.

Capella University

Average Tuition: Varies depending on the program

Check out Capella’s FlexPath Programs since these offer more affordable tuition. Every 12-week billing session costs between $2,500 and $3,370 for each student. In some cases, full federal loans can exceed tuition costs, resulting in among the highest refund checks for online colleges.

American Public University System

Average Tuition: About $285/credit with books included for undergraduates

APUS consists of the American Military University and the American Public University. The private, for-profit online university offers affordable tuition and generous financial aid. About 77% of its students receive federal grants, too. Many students then receive large refund checks.

Liberty University Online

Average Tuition: $415-$615 depending on program, residency status, and enrolment status

LU Online is a Christian online university that offers a wide range of academic programs. In most programs, in-state and out-of-state tuition are the same. Many students also receive enough federal aid and scholarships to cover their tuition.

Columbia Southern University

Average Tuition: $270/credit

CSU is a private, online college that offers flexible degree programs for working professionals. The LifePace Learning model allows students to engage in self-paced study. Affordable tuition, financial aid, and full loan awards can lead to refunds, too.

Broward College

Average Tuition: $3,537/year (resident); $10,329/year (non-resident)

​Broward College, a public college, offers on-campus and online programs in business, education, and other fields. Every year, more than 51,000 students enroll in these programs. The low in-state tuition combined with Pell Grant eligibility results in a high potential for refunds.

Atlanta Metropolitan State College

Average Tuition: $3,106/year (resident); $9,741/year (non-resident)

AMSC, a public college, offers undergraduate degrees in business, humanities, and technology, among others. Both on-campus and online programs are available to its 1,800-plus students. Federal financial aid, including loans, are available, as are scholarships. This means a high potential for large refunds.

Lamar Institute of Technology

Average Tuition: $80/credit (resident); $500/credit (non-resident) plus $1,800 in fees for all students

​LIT, a public technical college, offers academic programs in engineering technology, information technology, and health sciences. Students may apply for federal grants and loans, as well as scholarships. Low in-state tuition plus financial aid, including federal loans, result in refunds for many students.

Delta State University

Average Tuition: $8,605/year (resident and non-resident)

DSU, a public university, offers degree programs in business, education, and arts and sciences. Students can apply for scholarships via the Okra Scholarship Management System (OSMS). Furthermore, federal financial aid, including Pell Grants and loans, is available. Financial aid reduces affordable tuition and, thus, results in refunds for many students.

Minot State University

Average Tuition: $8,702/year (resident and non-resident)

​MSU, a public university, is known for its affordable tuition. Students pursue diverse academic disciplines – over 100 areas – at the undergraduate and graduate levels. Affordable tuition is offset by federal financial aid and scholarships. Students also get large student loan refunds.

Chadron State College

Average Tuition: $7,564/year (resident and non-resident)

CSC is a public university where refund checks are common for many student borrowers. About 81% of undergraduate students receive financial aid (e.g., grants and scholarships). Financial aid covers a significant portion of the tuition. Student loan refunds are then common.

Dickinson State University

Average Tuition: About $318/credit

DSU is also a public university known for its large refund checks for student borrowers. Students who borrow the maximum federal loan amounts can get large loan refunds. Academic programs include education, nursing, and business management.

Other colleges that offer high student loan refunds include:

• University of Arkansas at Monticello – $8,868/year (resident)
• Fayetteville State University – $3,584/year (resident); $7,584/year (non-resident)
• Henderson State University – $267/credit (resident); $366/credit (non-resident)

When choosing from among these universities, look beyond the student loan refunds. You must also consider your interests and career goals. While cost is a major consideration, learning is also a priority.

Pros and Cons of Accepting a Big Refund Check

Pros:

Accepting a big refund check will be to your advantage if you:

• Use it on essential living costs, such as food and transportation, or on books.
• Create an emergency fund with it for unexpected college expenses and emergencies.
• Let it decrease your financial stress and, thus, increase your focus on your studies.
• Use it as a financial buffer so you don’t need to apply for extra loans and other financial aid.

Cons:

Accepting it is a financially risky move if you:

• Spend it on non-essential expenses, such as new gadgets and designer clothes.
• Increase your total student loan debt and, thus, make higher interest payments.
• Develop bad financial habits, such as borrowing more money for non-essentials.

Tips for Using Refund Checks Wisely

It’s okay to accept or return a big student loan refund. The trick is in doing so the right way.

If You Choose to Accept It

Remember these student loan refund tips to put it to good use.

• Make a budget for your refund first. List down your essentials, such as food, transportation, and books. Decide how much money will go into each item. Break your refund into monthly expenses so you don’t spend it all in one go.
• Create an emergency fund. Even if it’s only a small portion of your refund, do it.
• Avoid impulsive buying. Remember that it’s neither extra spending money nor free money. Think of it as a loan because it is.
• Track your spending. You’ll know if, indeed, you followed your budget.

More importantly, you should consider planning better for your next student loan.

If You Choose to Return It

Here are the basic steps to return your student loan refund:

• Act on it ASAP. Federal loans must be returned within 120 days of disbursement. Your refund will be canceled without fees and interest.
• Contact your financial aid office for step-by-step instructions. Do so as soon as you receive the notification for your refund.
• Call your private loan provider about returning unused loans. Be sure to keep detailed records of your student loan refund. Emails and receipts are evidence you must keep.

Alternatives to Relying on Refund Checks

Yes, student loan refunds have their merits. But remember that these are still student loans you must repay after graduation.

Think about it: You can be in debt for $20,000-$24,999 after graduating from college with a bachelor’s degree. You can spend 10-20 years paying for it.

So, instead of relying on student loans and refunds, consider these alternatives.

• Apply for grants and scholarships, which are free money.
• Get a part-time job to fund your college costs.
• Start a small business or side hustle. Freelance work, buy-and-sell, and tutoring are great ideas.
• Cut your living costs, such as getting roommates and cooking homemade meals.
• Use textbook alternatives, such as open-source and digital textbooks.

If possible, consider more affordable colleges.

Final Thoughts: Take Advantage of Student Loan Refund Checks

In conclusion, student loan refund checks are blessings. But these can become a burden, too, for many reasons.

So, what can you do to take full advantage of them? Better yet, what can you do to avoid them?

• Review your cost of attendance every semester.
• Apply for as many scholarships and grants as you can.
• Borrow only what you need to cover your net cost of attendance, if possible.
• Understand the differences between unsubsidized and subsidized loans.
• Attend financial aid workshops. Work with a financial aid officer to understand student loan refunds.
• Treat student loan refunds as loans.
• Return your refunds if you don’t need the money. The more refunds you return, the lower your loan payments.

In the end, you want to graduate with as much financial peace of mind as you can get.