Cash Management

• Statutory Authority

  • U.S. Code, Title 20—Education Chapter 28—Higher Education Resources and Student Assistance Subchapter IV—Student Assistance > Part A—Grants to Students in Attendance at Institutions of Higher Education, Subpart 9—TEACH Grants § 1070g Definitions [HEA § 420L]
  • U.S. Code, Title 20—Education Chapter 28—Higher Education Resources and Student Assistance Subchapter IV—Student Assistance > Part G—General Provisions Relating to Student Assistance Programs § 1094(a)(19) Program participation agreements [HEA § 487(a)(19)]

• Regulations

  • 34 CFR 668 Subpart K (668.161 – 668.166)

• ED References

  See also Subtopics for more specific references.

  • 2020-21 FSA Handbook, Vol. 4
  • 2020-21 FSA Handbook, Vol. 6

• NASFAA Publications and Articles

  • NASFAA AskRegs Knowledgebase

    Search or browse the Knowledgebase for answers to regulatory and compliance questions submitted by financial aid administrators.

  • NASFAA Compliance Engine

    The Compliance Engine is comprised of two modules: the Self-Evaluation Checklists which allows administrators to evaluate their programs in a centralized, shared online space, and the P&P Builder, a tool designed to assist institutions in the creation and maintenance of a policies and procedures manual. Along with an online space to update and maintain policies and procedures, the P&P Builder includes legislation and regulation associated with compliance with Title IV requirements.

  • NASFAA U Authorized Events

    NASFAA U Authorized Events are a comprehensive set of instructional materials for teaching financial aid concepts to groups of individuals. Materials include a study guide, instructor guide and accompanying presentation slides.

  • NASFAA U Self-Study Guides

    NASFAA U Self-Study Guides are written for the independent learner. Each Self-Study Guide includes multiple lessons with a variety of exercises to reinforce each lesson.  Individuals do independent study and take quizzes in a traditional paper format (not online). Then you can qualify to take a test and earn a professional credential.

• Subtopics

  • Administrative cost allowance (ACA)

    • Campus-based programs

      • 673.7
      • 2020-21 FSA Handbook, Vol. 4, Ch. 1
      • 2020-21 FSA Handbook, Vol. 6, Ch. 1

    • Pell Grant Program

      • 690.10
      • Electronic Announcement, 8/24/20
      • Electronic Announcement, 3/2/20
      • 2020-21 FSA Handbook, Vol. 4, Ch. 1

  • Authorizations to perform certain optional functions on student’s behalf

    See top list entry for Disbursement

  • Carry back of allocations

    • General information and rules

      • 2020-21 FSA Handbook, Vol. 6, Ch. 1

    • FSEOG

      • 676.18(d), (e), (f)

    • FWS

      • 675.18(c), (d)
      • 675.18(f)

  • Carry forward of allocations

    • General information and rules

      • 2020-21 FSA Handbook, Vol. 6, Ch. 1

    • FSEOG

      • 676.18(c)
      • 676.18(e)

    • FWS

      • 675.18(b)
      • 675.18(d)

  • Confirmation process for loans and TEACH Grant

    See top list entry for Disbursement

  • Credit balances

    See top list entry for Disbursement

  • Day

    • 668.161(a)(3)(iv)

  • Disbursement records (submission to ED)

    • Federal Register, 11/1/19, pp. 58699 to 58703
    • Federal Register, 1/24/19, pp. 351 to 353
    • Electronic Announcement, 12/18/20
    • Electronic Announcement, 11/18/20
    • Electronic Announcement, 12/10/18
    • 2020-21 FSA Handbook, Vol. 4, Ch. 2

  • Electronic transactions

    • 2020-21 FSA Handbook, Vol. 4, Ch. 2

  • Escheat prohibition (to State)

    • 668.164(l)
    • 2020-21 FSA Handbook, Vol. 4, Ch. 1

  • Excess cash resulting from failure to disburse timely all funds drawn down

    • 668.166
    • Electronic Announcement, 11/18/20
    • Electronic Announcement, 11/19/19
    • 2020-21 FSA Handbook, Vol. 4, Ch. 1

  • Garnishment of Title IV funds

    • 2020-21 FSA Handbook, Vol. 4, Ch. 1

  • Maintaining funds

    • General rules

      • 668.163
      • 674.19(a)(2), (3)
      • 675.19(a)(3)
      • 676.19(a)(2)
      • 685.309(e)

    • Accounting and internal control systems

      • 668.163(d)

    • Bank or investment account

      • 668.163(a)
      • 2020-21 FSA Handbook, Vol. 4, Ch. 1

    • Financial records

      • 668.24
      • 668.163(d)

    • Interest-bearing or investment account

      • 668.163(c)
      • 674.8(a)

    • Separate bank account

      • 668.163(b)
      • 674.19(b)

  • Notices from institutions regarding disbursement to students

    See top list entry for Disbursement

  • Power of attorney

    See top list entry for Disbursement, subtopic Power of attorney

  • Program year closeout

    • Campus-Based Program

      • Electronic Announcement, 2/21/20

    • Direct Loan Program

      • Electronic Announcement, 1/31/20

    • Pell Grant Program and IASG

      • Electronic Announcement, 9/3/20

    • TEACH Grant Program

      • Electronic Announcement, 9/3/20
      • Electronic Announcement, 6/2/20

  • Prompt disbursement after drawdown (3-day rule)

    • 668.165(a)(3)(i ), (4)(ii)(A)
    • 2020-21 FSA Handbook, Vol. 4, Ch. 2

  • Reconciliation

    See top list entry for Direct Loans, Pell Grant, and TEACH Grant

  • Requesting (drawing down) funds

    • General and summary information

      • 2020-21 FSA Handbook, Vol. 4, Ch. 1

    • Advance payment method

      • 668.14(b)(2)
      • 668.162(b)

    • Heightened cash monitoring payment method

      • 668.162(d)

    • Reimbursement payment method

      • 668.162(c)

  • Returning funds

    • General rules

      • 668.164(l)
      • 674.16(f)
      • 676.16(d)
      • 2020-21 FSA Handbook, Vol. 4, Ch. 4

    • Returned check or rejected EFT

      • 668.164(l)(2)

    • Stale check

      • 668.164(l)(3)

  • School policy requiring student (or parent borrower) bank accounts

    • 668.164(c)(3)
    • 2020-21 FSA Handbook, Vol. 4, Ch. 2

  • Third-party servicer

    See top list entry for Student Eligibility and Third Party Servicers

  • Transferring allocations among the campus-based programs

    • General information and rules

      • 2020-21 FSA Handbook, Vol. 6, Ch. 1

    • From FSEOG to FWS

      • U.S.C. 20 §1095(3) [HEA §488(3)]

    • From FWS to FSEOG

      • U.S.C. 20 §1095(3) [HEA §488(3)]
      • 675.18(e)
      • 676.18(b)

  • Use of funds

    • Charges related to failure to complete program on time

      • 2020-21 FSA Handbook, Vol. 4, Ch. 2

    • Fiduciary responsibility

      • 668.161(c)
      • 2020-21 FSA Handbook, Vol. 4, Ch. 1

    • Hypothecate (use as collateral) prohibition

      • 668.161(b)
      • 685.309(g)

    • Program-specific rules

      • Direct Loan

        • 685.309(g)

      • FSEOG

        • 676.18

      • FWS

        • 675.18