News-Sentinel.com Your Town. Your Voice.
This Weeks Deal
Basche's Martial Arts
Buy 1 Admission for Women's Self Defense Clinic for $20, and bring a friend for free
This Week Only
$20
50% off
Local Business Search
Stock Summary
Dow16936.55-147.25
Nasdaq4448.47-23.64
S&P 5001978.05-9.93
AEP53.03-0.98
Comcast54.45-0.68
GE25.7599-0.1801
ITT Exelis17.09-0.31
LNC52.78-0.3
Navistar37.13-0.55
Raytheon92.21-1.34
SDI21.68-0.06
Verizon51.30990.2599

Ivy Tech to go after student debtors' tax refunds

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press
Sunday, February 3, 2013 - 10:28 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.