Federal Regulations - Cash Management

To protect the best interests of students receiving Federal Title IV financial aid, the U.S. Department of Education published new cash management regulations (34CFR668.161-167) via the Federal Register on October 30, 2015. These Program and Integrity Rules require the University of Kentucky to maintain, account, and disburse Federal Title IV funds in accordance with these regulations. This includes refunding credit balances associated with Federal Title IV funds. This webpage is published to comply with these regulatory reporting requirements.

 

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 more information about the refund process, click here.

 

The University of Kentucky (UK) entered into agreements with PNC Bank on May 1, 2016, and with the University of Kentucky Federal Credit Union (UKFCU) on August 4, 2016. These agreements do NOT include services for handling student related Title IV credit balance refunds. However, since many UK students bank with PNC and UKFCU, the U.S. Department of Education requires that UK publish their contracts for public review. Links to the contracts are provided below.

 

As noted above, UK has agreements with PNC Bank and UKFCU and therefore UK is required to list major features and commonly assessed fees using a prescribed format being developed by the Consumer Financial Protections Board (CFPB). Although the prescribed format has not been released, we have provided the PNC Fee Sheet and UKFCU Fee Sheet associated with those institutions’ checking accounts below.

 

The regulations require UK to disclose contract data such as the number of UK students with PNC and UKFCU accounts and the mean and median costs associated with these accounts within 60 days of the end of that award year (academic year). Additionally, UK is required to disclose the total consideration, monetary and non-monetary, paid or received by the parties under the contracts and update this information within 60 days of the award year.  The following table includes these disclosures for each financial institution for the academic year ending June 30, 2017:

 

NOTE: All disclosures relating to these new regulations and the banking service contract will be made to this webpage.

 

Students are NOT REQUIRED to have a bank account with PNC or UKFCU to receive their refund via direct deposit (ACH). UK students may use their existing checking accounts. UK encourages students without checking accounts to shop around to find a banking partner that fits their needs. Tips on the selection process can be found here.

 

Documents

UK-PNC Banking Services Agreement

UK-UKFCU Agreement

PNC Fee Sheet

UKFCU Fee Sheet