If you are found to be eligible for a late disbursement of loan funds, the College will contact you prior to making any disbursements.
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.
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.
When a student withdraws from the College, he or she generally becomes ineligible for future disbursements of federal financial aid. California title and payday loans Oakland In some cases, however, funds earned prior to withdrawal can be offered to the student through a post-withdrawal disbursement (PWD).
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
- Second or subsequent disbursements of Direct Loan funds unless you’ve successfully completed your loan period.
- A PWD of Pell funds for a subsequent payment period if you have not completed the earlier payment period.
The College 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.
If a loan is part of a PWD, you can choose to accept only an amount for the balance due to the College or, if eligible, to accept a larger amount that will result in excess funds being returned to you.
If student loans are declined, or the late disbursement letter is not returned, funds will not be disbursed
A PWD of federal grant funds for open charges only does not require your acceptance. The College is required, however, to obtain your permission to credit your account with federal grant funds in excess of open charges.
The College must disburse a PWD of federal financial aid loan funds within 180 days after the date of the College’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.
Overpayments of federal grant funds are serious and can affect an individual’s ability to receive federal financial aid in the future. If grant funds are owed to the government and the student does not make arrangements for repaying the funds, the overpayment will be turned over to the Federal Department of Education (ED). Students who owe an overpayment of any Title IV funds are ineligible to receive further disbursements from Title IV programs until funds are paid in full, or payment arrangements are made with the Department of Education.
If a student fails to pay or make payment arrangements on their student account balance, the student’s academic records will be placed on financial hold, and the student will not be permitted to register for future classes or receive transcripts until the balance is paid. Accounts that remain unpaid will be sent to collections.
IMPORTANT: MODULES — The rules surrounding withdrawal and modules are slightly different. Students enrolled in modules are held accountable for attending the number of days in the modules in which they are enrolled. For example, if the student enrolls in modules one and three within a semester, only the days in modules one and three will be considered when calculating the percentage of the semester completed. The timing of a dropped class in the modular programs is also important. If a student drops courses in a later module while still enrolled in a current module within a semester, the student is not considered to be withdrawn. However, a recalculation of financial aid eligibility based on the change in enrollment status (full-time, three-quarter time, half-time) may still be required.
If a student receives financial aid but never attends classes, the Office of Financial Aid must return all disbursed aid to the respective federal and institutional aid programs.