Will Colleges Issue Coronavirus Refunds?

Summary

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Episode Overview

Podcast: WSJ Your Money Briefing
Episode Title: Will Colleges Issue Coronavirus Refunds?
Date: April 13, 2020
Host: J.R. Whelan
Guest: Cheryl Winokur Monk, WSJ Contributor

This episode examines the urgent question facing millions of college students and their families: Will colleges issue refunds for room, board, or even tuition now that campuses have closed and learning has shifted online due to the coronavirus pandemic? Cheryl Winokur Monk breaks down how colleges are approaching refunds, what families can expect, and how these decisions intersect with financial aid and student finances.

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Key Discussion Points

1. Variety in College Refund Policies

• Room and Board Refunds
  • College approaches are inconsistent; some have already started prorated refunds based on campus departure dates, some have committed to refunding, and others remain undecided.
    • Quote: “Well, it's kind of all over the place, and it really depends on the school.” — Cheryl Winokur Monk [01:42]
• Regional Differences
  • Colleges in areas hit hardest and earliest by COVID-19 have moved more quickly to refund decisions, while others are slower.
    • Quote: “The schools that were in areas which has been more affected by the virus have made faster decisions than some, maybe in other parts of the country where it's just not as prevalent at this point.” — Cheryl Winokur Monk [02:07]

2. Tuition Refunds Unlikely for Remote Learning

• General Trend
  • Most schools will not refund tuition, even though learning is now remote. The rationale: education is still being delivered; only the method has changed.
    • Quote: “Generally speaking, schools aren't refunding tuition because they're going to online learning. And the idea is that pretty much while it's different, it's still the same...” — Cheryl Winokur Monk [02:35]
• Pressure and Variability
  • Whether any school will refund tuition partially depends on pressure from students or local factors, financial resources, and possibly lawsuits. No national standard exists.
    • Quote: “There's no national standard, so every school is going to decide what to do. And it depends how much pressure they get and how much money they have in their coffers...” — Cheryl Winokur Monk [02:58]

3. Financial Aid Status Mostly Unchanged

• No Change for Full-Time Students
  • Financial aid commitments remain, as long as students remain enrolled full-time. Aid could change if a student drops below full-time status.
    • Quote: “For the most part, financial aid is also not changing. And the reason is, again, the students are still taking classes full time for the most part.” — Cheryl Winokur Monk [03:35]

4. Unused Dining and Campus Fees

• Refunds or Credits Are Possible
  • Unused funds for meal plans or similar accounts may be refunded, credited to next year, or given back to graduating seniors. Processing varies by institution.
    • Quote: “They'll put it onto a card, say for next year that they can use or they'll get the money back if they're graduating seniors.” — Cheryl Winokur Monk [04:01]

5. Relief Measures and Extra Support

• Federal Response
  • Temporary six-month waiver on student loan payments. The Department of Education to announce $6 billion in student assistance grants.
    • Reference by host J.R. Whelan [04:14]
• Advice for Families Facing Hardship
  • Families can check school websites for updates, reach out directly to financial aid offices, and be patient as schools respond to increased inquiries.
    • Quote: “If a student or a parent has not received any communication, another step is to go on the website and see what they say... You can always call the school. But just realize that other parents and other families are probably doing the same thing as well.” — Cheryl Winokur Monk [04:32]

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Notable Quotes and Memorable Moments

• On the unpredictability of college refund responses:
  • “It's kind of all over the place, and it really depends on the school.” — Cheryl Winokur Monk [01:42]
• On tuition refund expectations:
  • “Schools aren't refunding tuition because they're going to online learning... it's still the Same, if that makes sense.” — Cheryl Winokur Monk [02:35]
• On what families can do if struggling financially:
  • “You can always call the school. But just realize that other parents and other families are probably doing the same thing as well. And so you may not get any further than the information on the website.” — Cheryl Winokur Monk [04:32]

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Timestamps for Important Segments

• 00:20 — J.R. Whelan introduces the topic: families are wondering about spring semester refunds.
• 01:42 — Cheryl Winokur Monk discusses the variability in room and board refund policies.
• 02:35 — Why most colleges are not refunding tuition.
• 03:35 — Impact of campus closure on financial aid and enrollment status.
• 04:01 — Handling of prepaid meal plans and student cards.
• 04:14 — Overview of federal relief efforts and additional advice for financially-stressed families.

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Conclusion

This episode offers a concise and practical guide for families navigating the shifting financial landscape of college costs during COVID-19. The central message is that every school is handling refunds differently, with priorities given to room and board over tuition, and that patience and proactive communication are crucial for students and parents during this period of uncertainty.

Transcript

[Cheryl Winokur Monk]

Deal replaces fragmented payroll vendors with one global system. No third parties. Hire, manage and pay teams in 150 plus countries. Operate like a local everywhere. Visit d eel.com WSJ.

[J.R. Whelan]

Here's your money briefing for Monday, April 13th. I'm J.R. whalen for the Wall Street Journal. Millions of college students are finishing the academic year at home after their campuses were closed to prevent the coronavirus from spreading. Now students and families are asking schools for refunds for room and board and, in some cases, tuition.

[Cheryl Winokur Monk]

The schools that were in areas which has been more affected by the virus have made faster decisions than some, maybe in other parts of the country where it's just not as prevalent at this point.

[J.R. Whelan]

That's Wall Street Journal contributor Cheryl Winokur. Monk Coming up, she'll discuss how schools are deciding whether to refunds and how the closings could affect financial aid formulas. Last week, students filed lawsuits against Drexel University and the University of Miami. They hope to get reimbursed for their spring tuition, room and board and fees after the school's campuses closed and classes were moved online. Universities around the country have been considering whether to refund fees and if so, by how much. With us now to discuss the situation is Wall Street Journal contributor Cheryl Winokur. MONK so, Cheryl, what's been the trend so far in terms of refunds given to students and families since most university campuses have been forced to close?

[Cheryl Winokur Monk]

Well, it's kind of all over the place, and it really depends on the school. Many colleges and universities have said they plan to prorate charges for room and board based on the date students were asked to leave campus. And some schools have already started giving their refunds. Some have said they will. Some haven't made any decisions at all.

[J.R. Whelan]

Well, in most cases, we're talking about a lot of money and families are going to need to know the college's plan sooner than later.

[Cheryl Winokur Monk]

I got the sense that the schools that were in areas which has been more affected by the virus have made faster decisions than some, maybe in other parts of the country where it's just not as prevalent at this point. So they feel that maybe they have a little bit more time. They've gone to online learning, but yet they just, I just feel there's not this sense of urgency as in some schools.

[J.R. Whelan]

Do you expect colleges or universities to refund or prorate tuition costs specifically?

[Cheryl Winokur Monk]

So generally speaking, schools aren't refunding tuition because they're going to online learning. And the idea is that pretty much while it's different, it's still the Same, if that makes sense. It's that they're still learning, even though it's a different setting.

[J.R. Whelan]

How are schools handling the argument from students and families that classes being held online should warrant at least a partial tuition refund?

[Cheryl Winokur Monk]

It remains to be seen whether college is going to be accepting of that, of that opinion. I have a feeling they're not going to. I don't know that for sure. And maybe some colleges will. There's no national standard, so every school is going to decide what to do. And it depends how much pressure they get and how much money they have in their coffers and how much money they're given. You know, if they're, if they get support from the government or other states or what other endowments, maybe a big endowment. It really is going to depend. I do suspect, though, that most schools will not be returning tuition or even a large portion of it.

[J.R. Whelan]

Are financial aid commitments by the colleges likely to be adjusted given the change in venue for classes?

[Cheryl Winokur Monk]

For the most part, financial aid is also not changing. And the reason is, again, the students are still taking classes full time for the most part. Now it's going to be different. If a child, if a student decides to drop out or goes less than full time, then it would change. But for the most part, commitments aren't changing.

[J.R. Whelan]

Students also probably have a large amount of money that they've loaded onto a card that they can use, for example, at dining halls that they're no longer using.

[Cheryl Winokur Monk]

The schools that have made decisions about this have said they're either prorating it or from the time that the students are leaving, or what they'll do is they'll put it onto a card, say for next year that they can use or they'll get the money back if they're graduating seniors.

[J.R. Whelan]

Now, President Trump said last week that student loan payments have been waived for six months and that the Education Department plans to announce $6 billion in grants to assist students after their on campus classes were canceled. Or what else can families do if their finances have been hit hard by the pandemic?

[Cheryl Winokur Monk]

They can always reach out to the school. And a lot of places, a lot of schools on their websites now have question and answers, frequently asked questions or sections where parents can learn if they're not getting a direct email, either the parents or the students. Because some schools communicate directly with parents and some schools communicate directly with students, some do both. So if a student or a parent has not received any communication, another step is to go on the website and see what they say. Some schools are saying we will be making these decisions, but we haven't yet. If you're getting impatient, you can always call the school. But just realize that other parents and other families are probably doing the same thing as well. And so you may not get any further than the information on the website. It can't hurt to send the email or to call. Just be patient because you know these schools are trying.

[J.R. Whelan]

All right. That's Wall Street Journal contributor Cheryl Winiker Monk and that's your money briefing. I'm J. R Whelan for the Wall Street Journal.

[Cheryl Winokur Monk]

Deal replaces fragmented Payroll vendors with one global system. No third parties. Hire, manage and pay teams in 150 plus countries. Operate like a local everywhere. Visit del. Com WSJ.