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The Cash Management regulations (34 CFR 668.167) and Volume 4 of the FSA Handbook: Processing Aid and Managing FSA Funds establish specific time frames for schools to disburse FFEL Program funds or return the funds to the lender.
Borrowers Not Subject to Delayed Delivery
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Earliest Day School Can Request Disbursement
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Loans Disbursed by Individual Check
34 CFR 668.167(a)(2) |
30 calendar days before the first day of classes for the payment period
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Loans Disbursed by EFT or Master Check
34 CFR 668.167(a)(1) |
13 calendar days before the first day of classes for the payment period
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Earliest Day School Can Release Loan Proceeds or Credit Student's Account
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Loans Disbursed by Individual Check, EFT or Master Check |
For initial or subsequent disbursements for credit hour schools using standard academic terms, 10 calendar days before the first day of classes for the payment period 34 CFR 668.164(f)(1)
For initial disbursements for non-term institutions or credit hour schools using non-standard terms, 10 calendar days before the first day of classes for the payment period or the date the student completes the previous payment period 34 CFR 668.164(f)(2)
For subsequent disbursements for non-term institutions or credit hour schools using non-standard terms, the later of the calendar midpoint between the first and last scheduled days of class for the loan period or the date the student completes half of the course work or clock hours in the loan period 34 CFR 682.604(c)
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Borrowers* Subject to Delayed Delivery
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Earliest Day School Can Request Disbursement
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Loans Disbursed by Individual Check
34 CFR 668.167(a)(2) |
The first calendar day of classes for the payment period
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Loans Disbursed by EFT or Master Check
34 CFR 668.167(a)(1) |
27 calendar days after the first day of classes (28th day) for the payment period
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Earliest Day School Can Release Loan Proceeds or Credit Student's Account
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Loans Disbursed by Individual Check, EFT or Master Check 34 CFR 668.164(f) & 682.604(c)(5) |
30 calendar days after the first day of classes for the payment period
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**Borrowers who are enrolled in the first year of an undergraduate study program and have not previously received a Federal Stafford or SLS Loan.
Releasing Excess Funds
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Latest Day School Can Release Excess Funds
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Loans Disbursed by Individual Check, EFT, or Master Check 34 CFR 668.165(b) and 668.164(e)
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Within 14 calendar days of the later of:
- the date the balance occurs;
- the first day of classes; or
- the date the borrower rescinds his/her authorization to have the school manage excess funds
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Returning Funds
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Schools Must Promptly** Return FFELP Funds To The Lender
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For disbursement by EFT or Master Check |
If not delivered within 3 business days of receipt
34 CFR 668.167(b)
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For disbursements by individual check
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If not delivered within 30 calendar days of receipt
34 CFR 668.167(b)
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** Schools may have an additional 10 business days beyond the delivery dates specified above to deliver proceeds if the student has not met all FFELP requirements, but will meet those requirements within that additional 10 day period. [+10]
Schools have an additional 10 business days in which to actually complete the return process. [+10]
Before an institution may disburse Title IV funds, the institution must request information from NSLDS about a student’s financial aid received at a previously attended institution. Funds may be disbursed by the new institution seven days after the request is made to NSLDS or after information is obtained from NSLDS within that seven day period.
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