Trends and Issues

Question of the week

Q.: May a school delay the disbursement of Title IV funds for its students until after the 60-percent point in the payment period?

A.: No. According to guidance from ED in the form of the preamble language that precedes the general provisions final regulations published in the Federal Register on November 1, 2007, page 62016, “[A]s a general matter, Title IV funds must be provided to students in a timely manner to best assist them in paying their educational expenses. Consequently, an institution may not delay the disbursement of funds until after the 60 percent point, for example, to avoid the administrative burden of performing a Return of Title IV Funds calculation and the requirements that go along with it, or to prevent the student from having to return funds upon withdrawal.”

To access this Federal Register, go to http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-21083.pdf.

Do you have a question?
If you have a question that needs an answer, feel free to Ask TG™. Ask TG is TG's online query tool for borrowers, schools, and lenders. It includes a database of frequently asked questions about financial aid, student loan processing, and TG's products and services. To submit a question to Ask TG, visit tgslc.custhelp.com.

  Back to Top