Post-withdrawal disbursements — where is my financial aid?
When a student withdraws from the University, he or she generally becomes ineligible for future disbursements of federal financial aid. In some cases, however, funds earned prior to withdrawal can be offered to the student through a post-withdrawal disbursement (PWD).
This article will explain when withdrawn students are eligible to receive a PWD of federal financial aid, and the process for disbursing those funds.
A PWD is offered to you — or your parent in the case of a Parent PLUS loan — if, prior to withdrawing, you earned more federal financial aid than was disbursed. The amount earned is determined as part of the required federal Return of Title IV Funds calculation.
The conditions and limitations for a PWD are the same as those for a late disbursement, with some additions.
We are not able to make:
- Second or subsequent disbursements of Direct Loan funds unless you’ve successfully completed your loan period.
- A PWD of Pell, Iraq and Afghanistan Service Grant (IASG), and TEACH funds for a subsequent payment period if you have not completed the earlier payment period.
The University is required to contact students eligible for a PWD prior to making any disbursements. You have the opportunity to accept or decline federal financial aid as part of a PWD.
We will contact you by letter, and that letter must be completed and returned within 14 days for federal financial aid to be processed. You can electronically upload your completed PWD letter using the My Financial Aid Documents link on the student Financial Aid Web.
If a loan is part of a PWD, you can choose to accept only an amount for the balance due to the University or, if eligible, to accept a larger amount that will result in excess funds being returned to you.
A PWD of federal grant funds for open charges only does not require your acceptance. The University is required, however, to obtain your permission to credit your account with federal grant funds in excess of open charges.
The University must disburse a PWD of federal financial aid loan funds within 180 days after the date of the University’s determination of the withdrawal.
It is important to understand that accepting a PWD of student loan funds will increase your overall student loan debt that must be repaid under the terms of your Master Promissory Note. Additionally, accepting a PWD of grant funds will reduce the remaining amount of grant funds available to you should you continue your education later.