Ball State University students who have on-campus jobs will need to set up direct-deposit accounts in order to be paid.
Marie Kavanagh, director of payroll and employee benefits, said it is not mandatory to have a direct-deposit account at this time, but payroll will require students to set one up in the future.
There is no set time in which direct deposits will become mandatory, but payroll is urging students to switch over to it as soon as possible, Kavanagh said.
"We're giving students the opportunity to get a jump start," she said. "We want to go mandatory for obvious reasons for doing it that anybody with a direct deposit would understand."
Kavanagh said direct deposits are more convenient and employees are paid sooner.
"It's just more convenient for the employee because the money's already in the bank," she said.
Mandatory direct deposits will also save money for Ball State because the university will not have to pay to print checks, Kavanagh said.
She said the payroll office is targeting students for mandatory direct deposits first because student employees make up the lowest percent of those who use it. About 40 percent of student employees use direct deposits, but about 80 percent of the faculty use them, she said.
Kavanagh said there are many reasons why students do not sign up for direct deposits.
"I think it's just getting around to it," she said. "Many, many of the students, the majority of the ones that came and began direct deposits said 'I've been meaning to do that.' You don't think about it until you go to pick up your check."
Senior computer lab assistant Kyle Osborn said he did not like having to switch to a direct-deposit account.
"I like getting an actual paycheck" he said. "I like to see how much I've made."
Kavanagh said students have also mentioned they do not have bank accounts, which prevents them from using direct deposits.
Senior library assistant Alex Newby said he does not use direct deposits because he does not put all the money from his paychecks into one account.
The cost of a paper paycheck is six cents, but the cost of a direct deposit is one cent, Kavanagh said.
"If we want to keep tuition down, we have to keep expenses down," she said. "[A direct deposit] is a good way to keep expenses down."
Kavanagh said another issues payroll hopes to solve by switching students to direct deposits is avoiding mechanical failures with printers that could cause check deliveries to be delayed.
"In my 35 years of doing payroll departments, I've had lots of different occasions where the [printing] machinery breaks down," she said. "Direct deposits eliminate all that."
Kavanagh said the switch-over will prepare students for their future careers because many businesses have mandatory direct-deposit policies.
"It's going to be something when all of these kids get out of school," she said. "They're going to find it's pretty much the norm. I know some students feel uncomfortable with it."
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