Ivy Tech to go after student debtors' tax refunds
Sunday, February 03, 2013 10:27 am
ANDERSON — Ivy Tech Community College is asking the Indiana Department of Revenue to divert tax refunds of students who owe the college money.Chief Financial Officer Chris Ruhl tells The Herald-Bulletin (http://bit.ly/UD9HCM ) that the college loses out on about $12 million each year because of student-owed debt. That's about 1.5 percent of the college's general fund.
He says collection agencies only recover about $1 million a year.
Most of the money owed is related to federal financial aid owed by students who drop classes but fail to repay the assistance.
The statewide college has implemented a tax intercept program in an effort to improve those collections. Ruhl says Purdue University and other colleges use the program and predicts that it will be a "significant tool" for Ivy Tech.