All institutions participating in the financial aid programs
outlined in Chapter 22 shall follow the guidelines for the timely
distribution of funds, as outlined in this section:
(1) Timely Disbursement. Institutions shall disburse
state student financial aid funding to a student recipient's account
or, in the case of work-study, through a paycheck, no later than three
business days after receiving the funds. Undisbursed funds must be
returned to the Board no later than six business days after the receipt
of funds. Gift aid and work-study funds for which a student is no
longer eligible may be disbursed to a different eligible student for
whom funds have not yet been requested in order to meet the timely
disbursement requirement.
(2) Timely Determination of Ineligibility. For state
student financial aid funding already disbursed to a student, except
work study, institutions shall return funds to the Board within 45
calendar days of a student becoming ineligible for the funding. Gift
aid funds for which a student has been determined ineligible may be
disbursed to a different eligible student for whom funds have not
yet been requested in order to meet the timely determination of ineligibility
requirement. In all cases, an institution must provide notification
to the Board regarding the change in student eligibility, as appropriate
for the particular student financial aid program.
(3) Timely Cancellation. For state student financial
aid funds already disbursed to a student, except work-study, institutions
may return funds to the Board within 120 calendar days of disbursement
in situations where a student has notified the institution of his
or her decision to cancel the financial aid. Gift aid funds for which
a student has made the decision to cancel may be disbursed to a different
eligible student for whom funds have not yet been requested in order
to meet the timely cancellation requirement. In all cases, an institution
must provide notification to the Board regarding the student's decision
to cancel financial aid, as appropriate for the particular student
financial aid program.
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