Are there any special considerations to be aware of when handling second or subsequent loan disbursements?
Yes. A student can never receive as a post-withdrawal disbursement funds from a second or subsequent FFEL or Direct Loan disbursement that the school was prohibited from making to the student on or before the date of the student’s withdrawal. However, as long as the conditions for making a late disbursement are met, a second or subsequent FFEL or Direct Loan disbursement may be counted as aid that could have been disbursed for purposes of determining earned Title IV aid regardless of whether the school was prohibited from making the disbursement on or before the day the student withdrew. If the CPS processed a SAR or ISIR with an official expected family contribution prior to or as of the student’s withdrawal date, a Direct Loan or FFEL had been originated or certified prior to or as of that date, and an initial disbursement of the loan has not been made, the amount of the post-withdrawal disbursement must be made available to the loan recipient for the initial disbursement consistent
