All institutions participating in the financial aid programs
outlined in Chapter 22 shall follow the guidelines for the timely
distribution of funds, as outlined within paragraph (1) - (4) of this
section:
(1) Timely Disbursement. Institutions shall disburse
state student financial aid funding, excepting work-study, to a student
recipient's account 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 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, 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.
(4) Texas College Work-Study. Funds for the Texas College
Work-Study program are provided to institutions as a lump sum at the
start of each fiscal year and are subject to the reallocation guidelines
outlined in §21.407 of the Texas Administrative Code.
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