Principles of Title IV Aid That Could Have Been Disbursed

1
Principles of Title IV Aid That Could Have Been
Disbursed

• Lesson 3

2
Objectives

• Understand the impact of
• 30-day delayed disbursements
• Late disbursements
• Inadvertent overpayments
• Verification not completed before withdrawal
• Unsigned promissory note

3
Aid That Could Have Been Disbursed

• Conditions for Late Disbursement in 34 CFR
  668.164(g)(2) must be met at time student
  withdrew
• Include all undisbursed Title IV aid for period
  for which return calculation is performed
• Include as Aid That Could Have Been Disbursed,
  even if disbursement was prohibited

4
Effect of Aid That Could Have Been Disbursed

• Increases amount of aid earned
• Decreases amount of aid to be returned
• Eligibility for a post-withdrawal disbursement
  could increase

5
Conditions for Late Disbursement

• All Title IV Aid (Except PLUS)
• Department processed a SAR or ISIR with an
  official EFC for student and

6
Conditions for Late Disbursement (continued)

• FSEOG
• institution made award to student
• FFEL or Direct Loan
• institution certified or originated the loan, as
  applicable and
• Federal Perkins Loan
• institution made award to student

7
30-Day Delayed Disbursement

• If first-year, first-time student withdraws
  before 30 days and
• Meets late disbursement requirements
• Net amount of loan can be used as Aid That Could
  Have Been Disbursed
• No portion of the loan can be disbursed

8
Return of Title IV Aid Verification Rules

• Schools must perform R2T4 calculation within 30
  days of date of determination of withdrawal (PWD
  notification and confirmation)
• Return interim disbursements
• Include PLUS and unsubsidized loans in return
  calculation
• Perform new R2T4 calculation if verification is
  completed later

9
Determining Which Funds to Include

• If all required documents are received before
  R2T4 calculation, include
• Pell Grant, ACG, National SMART Grant, FSEOG,
  Perkins Loan, subsidized or unsubsidized Stafford
  Loans, and PLUS loans
• If all required documents are not received before
  R2T4 calculation, include
• PLUS and unsubsidized Stafford Loans

10
Determining Which Funds to Include (continued)

• If all required documents are received before
  verification deadline
• Perform new R2T4 calculation
• Include Pell Grant, ACG, National SMART Grant,
  FSEOG, Perkins Loan, subsidized and unsubsidized
  Stafford Loans, PLUS loans

11
Inadvertent Overpayments R2T4

• School may hold an inadvertent overpayment while
  it determines if student is entitled to a
  post-withdrawal disbursement (PWD) under R2T4
• Prevents returning funds needed later for PWD
• If entitled to PWD, student may only receive
  earned portion of inadvertent overpayment

12
Activity

• Individual Activities
• Participant Workbook pages 3-8 to 3-10

13
R2T4 Slides Lesson 3.ppt

• Scenario 1
• What amount should be included in
• Total aid disbursed? ______
• Total aid that could have been disbursed?
  __________
• Scenario 2
• What amount should be included in
• Total aid disbursed? ______
• Total aid that could have been disbursed?
  __________

14
Scenario 1 30-Day Delay

• Include 1000 loan as Aid That Could Have Been
  Disbursed
• No portion can be released as PWD
• All funds must be returned
• 30-day delay would have prohibited disbursement
  on withdrawal

15
Scenario 2 No 30-Day Delay

• Include 1000 loan as Aid That Could Have Been
  Disbursed
• If eligible, a portion can be released as PWD
• Unearned portion must be returned

16
R2T4 Slides Lesson 3.ppt

• Scenario 3
• What amount should be included in
• Total aid disbursed? ______
• Total aid that could have been disbursed?
  __________
• Scenario 4
• What amount should be included in
• Total aid disbursed? ______
• Total aid that could have been disbursed?
  __________

17
Scenario 3 Late Disbursement

• Include 1st 990 as Aid That Was Disbursed
• Include 2nd 990 as Aid That Could Have Been
  Disbursed
• No PWD available
• Could not have made disbursement because late
  disbursement criteria not met

18
Scenario 4 Late Disbursement

• Include 1st 990 as Aid That Was Disbursed
• Include 2nd 990 as Aid That Could Have Been
  Disbursed
• Cannot disburse 2nd or subsequent disbursement as
  PWD because student did not complete enrollment
  period

19
R2T4 Slides Lesson 3.ppt

• Scenario 5
• What amount should be included in
• Total aid disbursed? ______
• Total aid that could have been disbursed?
  __________
• Scenario 6
• What amount should be included in
• Total aid disbursed? ______
• Total aid that could have been disbursed?
  __________

20
Scenario 5 Verification Completed Before
Withdrawal

• School completes verification process
• Perform R2T4 calculation
• Include Pell, ACG, and FSEOG as Aid That Could
  Have Been Disbursed

21
Scenario 6 Verification Not Completed Before
Withdrawal

• Perform R2T4 calculation including the 4050 PLUS
  Loan as Aid That Was Disbursed
• When student provides missing signature and
  qualifies for a Pell Grant and National SMART
  Grant, do a second R2T4 calculation, including
  the 550 Pell Grant and 2000 National SMART
  Grant as Aid That Could Have Been Disbursed

22
Business Process Worksheet

• Review BPW Step 5
• Determine Aid That Could Have Been Disbursed