At the recent Federal Student Aid (FSA) Conference in Las Vegas, the U.S. Department of Education (ED) reviewed the following changes to the cash management regulations relating to books and supplies that become effective on July 1, 2016.
Under 34 CFR 668.164(c)(2), schools are allowed to credit a student’s ledger account with Title IV funds to pay for books and supplies that are included as part of tuition charges without obtaining the student’s or parent’s authorization under certain conditions. If the school:
Additionally, books and supplies costs may be included if:
Schools should also be aware that under 34 CFR 668.164(m)(1), all Title IV recipients, not just those eligible for a Federal Pell Grant, must be provided a way to purchase books and supplies by the seventh day of a payment period if, 10 days prior to the start of the payment period:
For additional information regarding these and other changes to the cash management regulations, please see the new rules published in the October 30, 2015 Federal Register.
Publication Date: 12/15/2015