Can a school include a loan disbursement as “aid that could have been disbursed” for first-year, first-time borrowers who withdraw before the 30th day of his or her program of study?
Yes. The R2T4 calculation must include, as “aid that could have been disbursed,” the amount of the Title IV Stafford or Perkins Loan for a first-year, first-time borrower. However, the school is prohibited from including any portion of the loan disbursement as part of a post-withdrawal disbursement. (See the Federal Student Aid Handbook.) For a school that is returning Title IV funds on a payment period basis, what is the proper procedure when aid that could have been disbursed for a previous payment period is received in a subsequent period during which the student withdrew? If aid that could have been disbursed during a previous payment period (completed by the student) is received in a subsequent period during which the student withdrew, the aid is not considered Aid Disbursed or Aid That Could Have Been Disbursed in the period during which the student withdrew. This late-arriving assistance, while it can be disbursed in the current term, is disbursed for attendance in the previous
Yes. The R2T4 calculation must include, as “aid that could have been disbursed,” the amount of the Title IV Stafford or Perkins Loan for a first-year, first-time borrower. However, the school is prohibited from including any portion of the loan disbursement as part of a post-withdrawal disbursement. (See the Federal Student Aid Handbook.) For a school that is returning Title IV funds on a payment period basis, what is the proper procedure when aid that could have been disbursed for a previous payment period is received in a subsequent period during which the student withdrew? If aid that could have been disbursed during a previous payment period (completed by the student) is received in a subsequent period during which the student withdrew, the aid is not considered Aid Disbursed or Aid That Could Have Been Disbursed in the period during which the student withdrew. This late-arriving assistance, while it can be disbursed in the current term, is disbursed for attendance in the previous
