Ivy Tech to go after student debtors' tax refunds

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ANDERSON, Ind. (AP) — Ivy Tech Community College is asking the Indiana Department of Revenue to divert tax refunds of students who owe the college money.

Chief Financial Officer Chris Ruhl tells The Herald-Bulletin that the college loses out on about $12 million each year because of student-owed debt. That's about 1.5 percent of the college's general fund.

He says collection agencies only recover about $1 million a year.

Most of the money owed is related to federal financial aid owed by students who drop classes but fail to repay the assistance.

The statewide college has implemented a tax intercept program in an effort to improve those collections. Ruhl says Purdue University and other colleges use the program and predicts that it will be a "significant tool" for Ivy Tech.