Publication Date: July 1, 2008
Summary: Discontinuation of "Late" Late Disbursement Approval Request
Process Effective July 1, 2008
As explained in a May
20, 2008 Electronic Announcement posted on the Information for Financial
Aid Professionals (IFAP) Web site, final regulations published on
November 1, 2007 amended the provisions that allow schools to make late
disbursements of Federal student aid authorized under Title IV of the
Higher Education Act of 1965, as amended (HEA). As a result of these changes,
which are now in effect, we have discontinued the process by which schools
previously requested approval to make late disbursements beyond the regulatory
late disbursement period. Late disbursements beyond the regulatory late
disbursement period were commonly referred to as "late" late
disbursements.
The purpose of this communication is to remind schools and third party
servicers of the regulatory change and the discontinuation of the "late"
late disbursement approval request process.
Regulatory Change
Effective July 1, 2008, the new regulations modify the late disbursement
provisions in 34 CFR 668.164(g) as follows:
| 1) |
The period for making a late
disbursement is increased from 120 days to 180 days. |
| 2) |
The provision that allows schools to request
approval from the U.S. Department of Education to make late disbursements
beyond the late disbursement period is eliminated. |
For complete information about these modifications, refer to the
May 20th Electronic Announcement.
Discontinuation of "Late" Late Disbursement Approval
Request Process
Effective July 1, 2008, the "late" late disbursement approval
request process is discontinued.
- We will process all "late" late disbursement approval
requests that were received by fax through midnight (ET) on Monday,
June 30, 2008.
We request the community's patience and understanding as we process
the large volume of requests received through the process end date.
We will complete the processing of these requests as expeditiously as
possible.
- We will not accept or process "late" late disbursement
approval requests received on or after Tuesday, July 1, 2008.
Any request associated with the discontinued process that is received
from this point forward will not be processed and will be disposed of
in a manner that protects the confidentiality of the personally identifiable
information included in the request.
Contact Information
If you have any questions about the information in this announcement,
you may e-mail fsalldprocessing@ed.gov
or call Nicki Meoli at 202/377-4031.
Posted 07/02/08 to www.NASFAA.org. Please submit Web Site questions or comments to Web@NASFAA.org
