ED Announces Additional Flexibilities for Late Disbursements for 2024-25 Paper FAFSA Filers
By Maria Carrasco, NASFAA Staff Reporter
The Department of Education (ED) on Thursday announced additional flexibilities for late disbursements regarding students who initially filed a paper 2024-25 FAFSA, including some students who may have submitted a paper FAFSA form but later filed an online FAFSA due to paper processing delays.
The electronic announcement noted specifically that institutions that received Institutional Student Information Records (ISIRs) for students who are no longer enrolled but their paper FAFSA’s application receipt date was prior to the end of their enrollment, and they would have otherwise been eligible to receive a Title IV disbursement, may still award and disburse aid. ED noted that this guidance was initially limited to just summer 2024, and is now extended to the entire 2024-25 academic year.
Additionally, ED clarified that institutions should use the application receipt date provided on the student’s ISIR from the FAFSA Processing System (FPS). However, if the application receipt date on the ISIR is not accurate, the institution can obtain documentation from an earlier paper FAFSA form to establish late disbursement eligibility. That documentation can include a copy of the original paper FAFSA form, mailing receipts or delivery confirmation from the mailing service, or a signed statement from the student.
Additionally, ED gave guidance on late disbursement requirements, specifically the condition that a late disbursement must be paid within 180 days from when the institution determined the student withdrew, or when the student became ineligible. ED noted that in some cases, even if the student is able to meet the expanded application receipt date allowance, a student may still not be able to receive a late disbursement due to the 180-day late disbursement timeframe restriction.
As a result, ED confirmed that for students who filed paper FAFSA forms for the 2024-25 cycle, the 180-day late disbursement timeframe will start from the later of either the date the student withdrew or otherwise became ineligible for the award year, or the earliest transaction processed date with an official SAI.
Publication Date: 12/13/2024
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