Late disbursements — where is my financial aid?
Kim Murphy| March 11, 2013
There are times when federal financial aid is not disbursed until after the payment period for which the funds were intended has ended. In these cases, federal financial aid earned prior to completing the payment period may be disbursed through a late disbursement. This article explains when you may be eligible to receive a late disbursement and the process for disbursing those funds.
A late disbursement will be offered to you — or your parent, in the case of a PLUS loan — if you were eligible to receive federal financial aid loan funds but did not receive them prior to completing the payment period. To be eligible for a late disbursement, you must meet one or more of the following conditions before completing the payment period:
- The U.S. Department of Education processed your FAFSASM form with an official expected family contribution (EFC).
- A Direct Loan was originated for you.
- A Federal Supplemental Educational Opportunity Grant (FSEOG) was awarded to you.
- A Teacher Education Assistance for College and Higher Education (TEACH) Grant was originated for you.
Late disbursements are prohibited if:
- It is a second or subsequent disbursement of loan funds, unless you have graduated or successfully completed the payment period.
- You are a first-year, first-time borrower and withdraw prior to completing 30 days of your degree program.
- It is a disbursement of grant funds and you did not have a valid FAFSA on file prior to the processing deadline.
- It is a disbursement of grant funds for a second academic year within the same award year.
If you are found to be eligible for a late disbursement of loan funds, the University will contact you prior to making any disbursements. This gives you the opportunity to accept or decline loans and to choose how funds will be applied.
If you are eligible, you will be sent a late disbursement letter. This letter must be completed and returned within 30 days for funds to be disbursed. You can electronically upload your completed letter using the My Financial Aid Documents link on the Financial Aid Web.
If student loans are declined or the late disbursement letter is not returned, funds will not be disbursed.
If you accept the loan, you can choose to borrow an amount to cover open charges or an additional amount, if eligible. Borrowing only for open charges will result in the disbursement of just enough loan funds to pay any balances due on your account.
Borrowing an additional amount of student loan will result in all funds being disbursed and any amount in excess of the account balance being sent to you as a refund.
Funds are disbursed in accordance with your wishes.
A late disbursement of federal grant funds only for open charges does not require any action on your part. We are required, however, to obtain permission to credit your account with a late disbursement of federal grant funds in excess of open charges.
A late disbursement of federal financial aid will be made no later than 180 days after the payment or loan period end date. No disbursements may be made after the 180-day time frame.
It is important to understand that accepting late disbursements of student loan funds will increase your overall student loan debt. All student loan funds borrowed must be repaid under the terms of the loan’s Master Promissory Note.
FAFSA is a trademark of the U.S. Department of Education.