Posted Date: July 3, 2019

Author:  Federal Student Aid

Subject: Invitation for Title IV Postsecondary Schools to Participate in the Payment Vehicle Account Program Pilot

FSA Payment Vehicle Account: A No-Cost Alternative For Delivering Credit Balance Funds

In October 2018, Federal Student Aid (FSA) announced its intention to launch a Payment Vehicle Account (PVA) Program pilot. The pilot provides students with a no-cost, state-of-the-art, e-banking product for receiving Title IV credit balance funds.

FSA invites Title IV postsecondary schools to express their interest in participating in the FSA PVA Program pilot.

Please review the questions and answers below for more details about the PVA Program pilot, including how to express an interest to participate.

1.     What are the key benefits of the PVA Program pilot?
   

The PVA Program pilot

  • offers students who receive federal student aid a unique, world-class e-banking product with no costs or fees, including no overdraft fees because overdrafts are not permitted;

  • allows access to all ATMs at no cost;

  • includes features, such as mobile account controls; the ability to transfer funds; customer service via mobile, online, phone, and email; and state-of-the-industry data security protections; and

  • supports the receipt of funds from multiple sources, such as financial aid offices, employers, peer-to-peer transfers, parents, and other family members.

2.     When will FSA launch the PVA Program pilot?
   

FSA plans to launch the PVA Program pilot in fall 2019. The pilot will run through December 2020 with options for extension.

3.        How does the PVA Program pilot work?

Title IV credit balance funds will be administered by schools the same way Title IV credit balance funds are administered today. Specifically, an interested student applies for the PVA through a unique portal. Once the student is approved for an account (usually instantaneously), the student is immediately provided with ACH routing and account numbers that the student provides to the school for the purpose of posting credit balance funds. Student participation in the pilot is voluntary.

4.        How does a school express their interest in becoming a PVA Program pilot school?

Click the link below to easily express your school’s interest in participating in the pilot program.

YES! We are interested in being a pilot school.

Note: Responding to the invitation does not commit a school to participate in the PVA Program pilot or commit FSA to approve a school’s request to participate. School invitations will be made on a case-by-case basis, considering factors that include, but are not limited to, expressions of interest, the overall pool of interested schools, and what will best serve the PVA Program pilot objectives. FSA will consider schools’ demonstrated administrative performance with the federal student aid programs authorized under Title IV of the Higher Education Act of 1965, as amended.

FSA intends to invite a limited number of schools to participate in the PVA Program pilot. Interested schools are encouraged to submit the expression of interest as soon as possible, but no later than 5 p.m. Eastern time on July 24, 2019.

   

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