Financial aid money delayed for thousands of ISU students due to error made in Treasurer’s Office

Arianna Layton

With one stroke of a computer key, an entire file can be deleted. Repercussions range from having to retype a file to delaying the arrival of financial aid for thousands.

That is, in effect, what happened with the financial aid of many Iowa State University students this fall.

Joan Thompson, ISU treasurer, said about 2,330 students were affected when a direct-deposit file was accidentally deleted on Aug. 19 before being sent to Banker’s Trust, the university’s financial institution.

In an effort to get student- refund payments to banks for available credit on Aug. 19, the treasurer’s office arranged to have refunds sent to students’ financial institutions by wire transfers.

However, Thompson said they were unaware some banks use different routing numbers for wire transfers, causing additional disruption in the deposit process.

“It was just that one day,” Thompson said. “It was human error and we’ve done the best we can to correct it.”

The deposits were made either late in the day on Aug. 19, 20 or 21.

All other direct-deposit transactions have gone as they are supposed to, Thompson said.

Thompson sent a letter to each affected student, apologizing for any inconveniences.

ISU’s director of financial aid, Earl Dowling, said he thought the letter was a good initiative on Thompson’s part.

In the letter, Thompson stated, “In the wire transfer instructions to your financial institution, Banker’s Trust requested that [your financial institution] waive any wire transfer fee they might normally assess.”

In addition, any wire transfer fees or overdraft fees incurred as a result of the delayed arrival of student aid refunds will be reimbursed by Banker’s Trust if students send proof of fees charged to Bankers Trust, Thompson said.

A postage-paid envelope addressed to Banker’s Trust was enclosed.

This is only the second year financial aid was distributed by direct deposit at ISU, Thompson said.