Ivy Tech to go after student debtors' tax refunds
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 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.
Information from: The Herald Bulletin
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