Student Loans

Effective Date: 07/01/00

Procedure Statement 8: Payment Reversals


Payment reversal transactions should be used to update the Master File for returned checks and for payments processed in error.

  1. Returned Checks

    The Student Loans Office:

    1. Receives all returned checks. Notifies borrower of returned check.
    2. Writes a check to "cover" the amount of bad checks to the University Cashier's Office.
    3. Codes payment reversal for each returned check according to the appropriate coding instructions.
    4. On-line payment reversals. Make sure hash total equals total of bad checks.

  2. Payments processed in error

    1. When correcting payments from various warning messages which indicate a payment was accepted but needs to be reversed and reentered differently.

      1. DOLLARS OR COUNT DO NOT BALANCE - A payment amount may have been miskeyed but not rejected. Payment accepted would require reversal; correct payment would have to be reentered.

      2. NEGATIVE BALANCE, EXPECT REFUND - A payment may have been distributed incorrectly such that one loan fund has a credit balance. Payment would need to be reversed and reentered with loan funds specified.