Can a school earn interest earnings on an account that the U.S. Department of Education deposits Title IV funds into upon request from the school? If so, what is the limit?

• A. Yes, but only up to $500 annually of the initial revenue to pay for the administrative expense of maintaining the account.
• B. Yes, but only up to the cost of the initial revenue to pay for the administrative expense of maintaining the account.
• C. No, as a school may not retain interest earnings from Title IV funds.
• D. Yes, with no limit on interest earnings.

Answer: (A)