- Refund Timing: Financial aid refunds are issued when a student’s aid exceeds tuition and fees, typically arriving after the semester officially begins but before the first official day of class.
- Banking Choices: Students can receive refunds through direct deposit to their bank accounts, checks, or services like BankMobile Disbursements.
- Processing Speed: Direct deposit is usually the fastest method, while paper checks take longer due to mailing and processing times.
Financial aid refunds occur when a student’s scholarships, grants, or loans exceed their school’s tuition, fees, and other charges. The remaining balance is returned to the student, allowing them to use the funds for books, housing, transportation, or other educational expenses.
Colleges and universities disburse these refunds after verifying tuition and fees are covered. The exact timing depends on the school’s schedule and the type of aid received.
Federal loans, for example, are typically disbursed 10 days before the semester starts, but schools may delay refunds for administrative processing.
When Can Students Expect Their Refunds?
Most students typically receive their financial aid refunds a couple days before the actual start of classes.
Once the refund is processed, the fastest method is direct deposit, which can take 2-3 business days once processed. Paper checks take longer—often 7-10 business days—depending on mail delivery.
Some schools issue refunds weekly, while others process them once a month. Students should check their school’s financial aid office or bursar’s office for specific timelines.
What Is BankMobile?
BankMobile Disbursements is a service that many colleges use to distribute financial aid refunds. In fact, according to BankMobile, one in three college students has to use Bank Mobile, because over 750 colleges and universities use them to process financial aid refunds.
Students receiving refunds through BankMobile can choose from the following options:
- Direct deposit into their existing bank account.
- Paper check mailed to their address on file.
- BankMobile Vibe Checking Accountan FDIC-insured account with online banking features.
While BankMobile provides the system, students are not required to use its banking services. They can opt for direct deposit into their own personal accounts, which may be a better option for students.
However, some colleges may automatically enroll students in BankMobile if they do not select a refund preference, so students should confirm their choice early.
Best Banks For Students To Receive A Tuition Refund
Students can use their own bank accounts to receive financial aid refunds via direct deposit. They simply need to provide their bank’s routing number and account number through their school’s refund processing system.
Here is a selection of the best banks for college students to get a financial aid refund:
1. Discover® Cashback Debit
Discover offers the Cashback Debit Checking Account. This checking account allows you to earn up to 1% cash back on up to $3,000 in debit card purchases every month. See website for details.
Plus, this account has no fees or minimum balance requirements – including free-free overdraft protection! And, you can get your paycheck up to two days early with no charge!
They are very mobile friendly, have access to over 60,000 free ATMs, and even have no-fee check ordering. Read our full Discover bank review here.
Why I Like It: Cashback debit on a free checking account.
Learn more about Discover Cashback Debit here.
2. Chime® Checking
Chime® was one of the original free mobile banking apps that revolutionized mobile banking. They started with a mobile-first mindset, and also wanted to keep fees as low as possible.
Chime really started its focus on college students when it launched – being mobile first across the board.
As such, they have a top notching free checking account if you’re okay with a mobile only platform. Chime has no physical locations, and all of their banking is done online – in the app.
Why I Like It: Free mobile banking.
Learn more about Chime Checking here. Check out our Chime Review here.
3. Current
Current is a leading mobile banking app that has been endorsed by a huge range of personaliities, including YouTuber Mr. Beast. It makes banking convenient and easy – it’s that simple.
Current offers both a free and premium version – but the free product is solid checking account that you should consider. It offers no minimum balance requirements, no overdraft fees, fee-free ATM withdrawals at over 40,000 ATMs, and 1x points for cash back!
Plus, you can get up to 4.00% APY on balances up to $6,000 by adding money to your Savings Pods and enabling the Interest feature.
You can upgrade to premium if you want even more perks.
Check out our Current Review here.
Why I Like It: Free mobile banking.
Learn more about Current Free Checking here.
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