Using an Account Credit Toward a Prior Semester Balance

If you have a credit balance on your student account for one semester but still owe money from a previous semester, sometimes that credit will be used to help pay the prior balance.
 
How much of the credit will be used toward the prior balance depends on the type of funds that created the credit balance and if you have a signed Title IV Authorization on record with the College.
 
This article outlines when and how a credit balance will be applied to a previous semester’s charges, depending on the source of the credit.
 

The Credit is from a Payment You Made

  • Your credit will be used toward the prior balance with no limit.
  • No Title IV authorization is needed.
  • If there’s money left after paying the prior balance, it will be refunded to you.

The Credit is from Student Loan Funds

First, we check whether the loan period includes the semester you owe money for.
 
The loan period is the semester/s that the loan funds apply to. For example, a loan accepted for the fall semester has a loan period that includes the fall semester, while a loan accepted for both the fall and spring semesters has a loan period that includes both the fall and spring semesters.  
 

Loan period includes the semester you owe

  • Your credit will be used toward the prior balance with no limit.
  • No Title IV Authorization is needed.
  • Any eligible remaining credit will be refunded to you.
Exception:
If the prior balance includes non‑institutional charges (such as late fees), you do need a Title IV Authorization.
 

Loan period does not include the semester you owe

  • You must have a Title IV Authorization on file.
  • Only up to $200 of the credit can be used toward the prior balance.
If you have submitted the authorization:
  • Up to $200 will be applied (or less if your credit or balance is smaller).
  • Any eligible remaining credit will be refunded to you.
If you have not submitted the authorization:
  • None of the credit can be used toward the prior balance.
  • Eligible credit balances will be refunded to you.

The Credit is from Federal or State Grants

We look at whether the prior balance is from the same academic year as the grant/s.
 
The academic year at Baker College spans the fall, spring, and summer semesters.
 
Examples
Same Academic Year: If there is a credit balance from the Spring 2026 Semester and a balance from the Fall 2025 Semester, the balance (fall 2025) would be from the same academic year as the credit (spring 2026), since both semesters are within the 2025-2026 academic year.
 
Different Academic Years: If there is a credit balance from the Spring 2026 Semester and a balance from the Fall 2024 Semester these semesters are not considered the same academic year since the Fall 2024 Semester is from the 2024-2025 academic year and the Spring 2026 Semester is from the 2025-2026 academic year. 
 

Grants are from the same academic year as the prior balance

  • Your credit will be used toward the prior balance with no limit.
  • No Title IV Authorization is needed.
  • Any eligible remaining credit will be refunded to you.
Exception:
If the prior balance includes non‑institutional charges (such as late fees), you do need a Title IV Authorization.
 

Grants are not from the same academic year as the prior balance

  • You must have a Title IV Authorization on file.
  • Only up to $200 of the credit can be used toward the prior balance.
If you have submitted the authorization:
  • Up to $200 will be applied (or less if your credit or balance is smaller).
  • Any eligible remaining credit will be refunded to you.
If you have not submitted the authorization:
  • None of the credit can be used toward the prior balance.
  • Eligible credit balances will be refunded to you.

The Credit is from Institutional Funds (Baker Scholarships)

  • Your remaining eligible credit, after any adjustments for the semester, will be applied to your prior balance with no limit.
  • No Title IV Authorization is needed.
  • Any eligible remaining credit will be refunded to you.
If you have any questions regarding a credit balance and how it is applied to a prior semester balance email billing@baker.edu or submit a ticket. 
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