Late Disbursement Management
Student Financial Planning triggers the Late Disbursement process when a student meets all Disbursement Criteria for a prior Award Year or Loan Period that has a fund amount that did not disburse. Prior award years are evaluated for grants, and loan periods are evaluated for loans.
Overview
Once a student is eligible for a Late Disbursement, an Outbound Disbursement Acceptance Message is sent to the student to request confirmation for any loan funds and notify them of the grant late disbursement. Grants disburse without a disbursement acceptance, but the student must accept or reject loan funds through disbursement acceptance. The student can accept the full eligible amount, a reduced amount, or reject 100% of the eligible funds. If the student accepts the full amount, the student does not require a repackage, and the funds are disbursed. When a student accepts a reduced amount, the student record is repackaged according to the reduced accepted amount before disbursing. If the student rejects 100% of the eligible funds, the funds are reduced to zero, and the funds are zeroed out in the Common Origination and Disbursement (COD) system.
What Student Financial Planning Does Automatically
Student Financial Planning automatically does the following things:
Determines late disbursements for active students
Student Financial Planning determines when an active student is eligible to receive a Late Disbursement so that the student can be notified of the potential disbursement and can accept or reject the disbursement as part of the Federal Student Aid (FSA) package. Student Financial Planning checks if the student has posted attendance in the payment period for the current year to ensure that the student is still in attendance and use the Academic Year End Date to determine when a disbursement becomes a Late Disbursement.
Evaluates late disbursement criteria for active students
Student Financial Planning evaluates and makes sure the following Late Disbursement Criteria has been met for active students prior to the Award Year/Loan Period End Date:
- All Fund Types: The department processed an ISIR with an official SAI/EFC.
- FSEOG/TEACH: The Grant was awarded.
- Subsidized/Unsubsidized/PLUS Loans: The Loan was originated.
Student Financial Planning evaluates and makes sure the following Late Disbursement Criteria has been met for active students prior to making the Late Disbursement:
- Pell & TEACH: A Valid ISIR has been received.
- Subsidized/Unsubsidized/PLUS Loans: Second disbursements require the student to
complete the period for which the loan is intended. This means an Enrollment
Status for the period equaling one of the following:
- AC - Academic Complete.
- A - Approved Leave of Absence.
- F - Full Time.
- H - Half-time or more, but less than full-time.
- L - Less than half- time.
Student Financial Planning uses the Award Year/Loan Period End Date to determine when the student becomes ineligible and creates the Late Disbursement no later than 180 days from that date.
Once the system determines that the disbursement is a Late Disbursement and the student is eligible to receive the disbursement, the system:
- Stores an indicator showing that it is a Late Disbursement.
- Determines the Total Outstanding Charges.
- Checks whether the fund is a Title IV Loan in order to determine if Late Disbursement Acceptance is required. Student Financial Planning changes the Disbursement Acceptance status when a Late Disbursement is identified.
- Begins the disbursement process if it is a Title IV Grant.
Determines late disbursements for withdrawn/graduated students
Student Financial Planning determines when a Withdrawn/Graduated student is eligible to receive a Late Disbursement so that the student can be notified of the potential Late Disbursements and can accept or reject the disbursement as part of the FSA package. Student Financial Planning determines when the student Withdrew or Graduated from the institution and make sure the disbursement is associated with a completed payment period.
Evaluates late disbursement criteria for withdrawn/graduated Students
Student Financial Planning evaluates and makes sure the following Late Disbursement Criteria has been met for Withdrawn/Graduated students prior to the date the student became ineligible (withdrawal/graduation date):
- All Fund Types: The department processed an ISIR with an official SAI/EFC.
- FSEOG: The Grant was awarded.
- Subsidized/Unsubsidized/PLUS Loans: The Loan was originated.
- TEACH: The Grant was originated.
Student Financial Planning ensures the following conditions occur prior to making the late disbursement.
- Pell & TEACH: A Valid ISIR has been received.
- Subsidized/Unsubsidized/PLUS Loans: A First-Time-Borrower must complete 30 days of the program.
- Subsidized/Unsubsidized/PLUS Loans: Second disbursements require that the student to graduated in the period for which the loan is intended.
Student Financial Planning uses the Withdrawal/Graduation Date to determine when the student becomes ineligible and will create the Late Disbursement no later than 180 days from that date.
Once the system determines that all of the conditions have been met, Student Financial Planning determine if the payment period associated with the disbursement has already been completed and will:
- Follow the Post-Withdrawal Disbursement process, if the disbursement is associated with the payment period that the student is withdrawing from.
- Store an indicator showing that it is a late disbursement.
- Determine the Total Outstanding Charges.
- Check whether the fund is a Title IV Loan in order to determine if Late Disbursement Acceptance is required. Student Financial Planning changes the Disbursement Acceptance status when a Late Disbursement is identified.
- Begin the disbursement process if it is a Title IV Grant.
Sends the disbursement acceptance information outbound message
Student Financial Planning creates and sends an Outbound Disbursement Acceptance Information Message to communicate Late Disbursement information when a Late Disbursement is determined for a grant or loan. The Disbursement Acceptance will be tracked and the Disbursement Acceptance will be updated appropriately when the notification is sent and received. The Disbursement Acceptance Due Date will be determined using the configured Acceptance Date.
However, Student Financial Planning does not accept a Disbursement Acceptance if 180 days have elapsed since:
- the completion of the Award Year/Loan Period for an Active student
- the Date of Determination (DOD) for a Withdrawn student
- the Graduation Date for a Graduated student
Receives the inbound disbursement acceptance message
Upon receiving a student's Disbursement Acceptance Message for a Late Disbursement, Student Financial Planning updates the Accepted or Rejected Amount, updates the Disbursement Status and disburses funds accordingly. Student Financial Planning accepts the Disbursement Acceptance Message up to the Late Disbursement Acceptance Due Date, but will not accept it once that date has passed unless an authorized user has extended the deadline.
Updates the student package if disbursement acceptance is not received by due date
Student Financial Planning runs a batch job daily to identify all funds with an Acceptance Due Date. If the Disbursement Acceptance Message is not received by the Due Date, the Disbursement Acceptance Status will be updated to Disbursement Not Accepted by Due Date. Upon the Disbursement Acceptance Status update, the disbursement process will begin and cancel associated disbursement(s).
When a disbursement is canceled, Student Financial Planning sends an Outbound Student Notification to communicate to the student that the Late Disbursement has been canceled.
Configurable Attributes
Configure late disbursement acceptance due dateThe institution can configure the Inbound Disbursement Acceptance Message deadline for each specific fund. If the deadline is reached and the student has not responded to accept or reject the Late Disbursement, Student Financial Planning cancels the Late Disbursement.
The Disbursement Acceptance Due Date must be configured to be no more than180 days past:
- the completion of the Award Year/Loan Period for an Active student
- the Date of Determination (DOD) for a Withdrawn student
- the Graduation Date for a Graduated student
Required Role Permissions
The user must have a role with the following General Permission(s) through Roles Management in order to view the following information.
- Student
See Set General Permissions Matrix for additional information.
Navigation to the Student Financial Planning User Interface Functionality
To view Disbursements