Pop Quiz – When Is the Earliest that Title IV Aid Can Be Disbursed?
Scenario:
The school has modules which it combines to form a single summer term. There is a session that extends the regular 10 weeks and there is also a module that is four weeks long and does not start the end of June. If students are only registered for the short module, when is the earliest funds can be disbursed? Should we be reporting to NSLDS more than once during the summer?
Answer:
In general, Title IV funds (other than FWS) can be disbursed no earlier than 10 days before the first day of classes of a payment period. However, if the payment period of a term-based credit hour program consists of combined modules and a student does not enroll in each module of the payment period, the earliest Title IV funds can be disbursed is 10 days before the start of the first module in which the student is scheduled to begin attendance. See 34 CFR 668.164(i) and Volume 3, Chapter 1 of the FSA Handbook.
For NSLDS Enrollment Reporting, schools must report enrollment information to the National Student Loan Data System every 60 days, and within 15 days of the date that NSLDS sends a roster file to the school or its third-party servicer. This requirement also applies to schools that report exclusively online. Schools have the option to report information more frequently than every 60 days. For more information, refer to Chapter 6 of the NSLDS Enrollment Reporting Guide. Also see Askregs Knowledgebase Q&A, How Do We Report Summer Enrollment in NSLDS?
Student Aid Index:
For additional information, try NASFAA's Student Aid Index. It is a central hub of all the important financial aid resources you need with direct links to legislation, regulation, Dear Colleague Letters, and other ED and NASFAA references. It is updated on a rolling basis with the latest news and changes. Search Disbursement.
Test your financial aid knowledge with past pop quizzes based on real scenarios from financial aid offices on our Pop Quizzes page.
Publication Date: 6/10/2020
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