By participating in the Chancellor’s Office Tax Offset Program, a college district can recover outstanding student obligations such as student loans, financial aid overpayments, student fees, library fines, and personal checks written with insufficient funds.
Through the Tax Offset Program, the Chancellor’s Office requests the state’s Franchise Tax Board to offset – or deduct – whatever amount is owed to a district from the student’s state income tax return, lottery winnings, or other state refund. The Franchise Tax Board remits any amounts recovered to the Chancellor’s Office, which authorizes the State Controller to disburse the offset amount, minus an administrative fee, to the participating local districts.