Financial Aid Disbursements
Once the student has completed his/her financial aid, how long should it take for funds to be disbursed to the student?
At our school we request Pell as soon as they are acknowledged in their first day of attendance. Their first loan distribution will come 30 days after they start. The second disbursement at 450 hrs, 3rd disbursement at 900 hrs and 4th disbursement at 1075 hrs. Our program is a total of 1250 clock hrs.
Gabrielle,
I have worked with other institutions that use an active confirmation process and prefer it to passive. It is important that you implore a process that is successful to the students.
Sincerely,
Chyrl Ayers
In our school we have the affirmation period which is 14 days after the student starts before we have them sign a contract and their award letters. Once they have accepted and signed the award letter we then send it to be processed.
Bernadette,
Do you have an automated process that allows you to ensure that all students ready for disbursements recieve these timely? If not, what type of process do you use to ensure all eligible students receive their disbursements timely? It is always nice to have participants share how they handle processes to provide additional thoughts for other taking their online course. Your response indicates that you have a solid standard operating procedure or system to ensure timely delivery of all TIV funding.
Sincerely.
Chyrl Ayers
We have 14 days of class then we disburse out students Pell grant and we have entrance counseling 1 week after and then we disburse out students loans 30 days after they start school.
We do this as well, I agree with you it is good to allow the 30 days for all students. Considering most students will withdrawal during the first 30 days.
Normally if a student has never received title IV before we schedule for 30 days out. If they have received aid before then it is scheduled after the first week of the program start. For Pell we schedule after the first week of the start also.
Laura,
Do you hold all of your disbursements for 30-days or just your first-time TIV loan borrowers? If the student is not subject to the 30-day hold do you release or hold all students to this criteria. If you hold all disbursements for 30-days, do not consider the students to be started until after the 30 days. These items should be considered since it may have an impact to the handling of return of TIV calculations if the student drops in the first 30-days.
Sincerely,
Chyrl Ayers
Our school waits 30 days from the day the student started since we are just a 7 month program. I think its great to wait this time just in case anyone drops.
Linda,
The 30 day delay requirement for first time borrowers requires the funds to not be delivered until 30 days after the begin date of the pay period. The funds may be disbursed on day 31 in order to meet this requirement.
Sincerely,
Chyrl Ayers
I have always wondered if first-time borrowers can receive their loan on day 30 or day 31? can you comment.
We generally disburse the first Pell Grant within 1 week of the start of programs. The first loan disbursement is 30 days from the start of programs.
Marjie,
It is important that you handle your disbursements in a manner that is compliant and works for your student process. Based on your answer it appears that you have a found a method that is compliant and meets the necessary requirements at your institution for your student population. I completely understand you waiting to insure that your students have settled into the process.
Sincerely,
Chyrl Ayers
I have worked in 3 different institution and all 3 have done it differently. Currenlty I am a Regional Director and I take Pell the first week and the loans I do wait for the 30 day mark. I like to wait the 1st week on the Pell just because you get some students that drop with in the 1st couple of days. Since we can always pull the Pell down after R2T4 it seems easier that way for my institution.
sharita, You are correct that all frst time borrowers must wait 30 days to receive their first disbursement of a loan, however, also remember that if a student is not a first time borrower (you can find this informaton on the NSLDS page of the SAR/ISIR), you can make the first disbursement of loans the same time as you make the Pell disbursement. Good luck in your online studies.
Regards,
David McGuffee
STUDENT LOAN CAN BE SENT OFF AFTER 30 DAY AND WE GENERALLY WILL REQUEST PELL AFTER THE FIRST WEEK OF CLASS.
Regina, The timely receipt of a student's financial aid is so important both to the student and the school. Although students that are first time borrowers have to wait for 30 days from the date their term begins, you also have to be cognisant of the students that are not first time borrowers since their loan disbursements may occur the same time as their Pell disbursement. Thanks, David McGuffee
David McGuffee
Federal Pell grants can be processed for disbursement during the first week of class. I process Federal Pell at the end of the first week of class. Federal Loan disbursements are processed after students have completed entrance couseling and have been in school 30 days.
Trudy,
Based on your response it appears that your registrar, business office and financial aid teams are working in harmony to insure timely processing of all TIV funds. It is great to have a schedule with internal controls to make sure students are eligible for their funds and deliver timely.
Chyrl Ayers
