Which item requires written authorization if a student uses Title IV, HEA funds to pay for charges?

Which item requires written authorization if a student uses Title IV, HEA funds to pay for charges?

• A. Housing charges provided by the institution
• B. Housing charges provided by an external entity
• C. Textbook purchases from a university-owned bookstore
• D. Meal plan charges provided by the institution

Answer: (B)

Title IV funds can be used to pay charges that are billed by the institution itself, such as on-campus housing, meal plans, and textbooks from a campus bookstore. If the charge comes from an external provider outside the school's billing system, the student must give written authorization for Title IV funds to be used to pay that external charge. Off-campus housing is billed by an external entity, so written authorization is required. In contrast, charges billed by the institution—on-campus housing, meal plans, and campus bookstore textbooks—can be paid with Title IV funds without separate written consent.

Title IV funds can be used to pay charges that are billed by the institution itself, such as on-campus housing, meal plans, and textbooks from a campus bookstore. If the charge comes from an external provider outside the school's billing system, the student must give written authorization for Title IV funds to be used to pay that external charge. Off-campus housing is billed by an external entity, so written authorization is required. In contrast, charges billed by the institution—on-campus housing, meal plans, and campus bookstore textbooks—can be paid with Title IV funds without separate written consent.