Federal Student Aid (FSA) funds are only used for educational costs. Western Governors University (WGU) disburses FSA funds by crediting student accounts for allowable charges which include the current cost for tuition and fees, books and supplies (technology), and prior charges not exceeding $200, and if the University obtains a written authorization from the student or parent (as applicable), other educationally related charges or non-standard fees.
WGU's academic year is a two six-month nonstandard terms. A term is based on completion of at least 12 competency units (credit equivalents) for undergraduate programs and at least 8 competency units for graduate programs.
Students are eligible to receive the disbursement of federal student aid funds at the start of the payment period or term provided they meet basic eligibility criteria and certain eligibility requirements to receive these funds.
FSA funds are available to students based on six-month payment periods. WGU disburses FSA funds by crediting student accounts no later than three business days after receiving the funds. Excess funds, after the University’s tuition and fees are paid, are disbursed directly to students by ACH direct deposit, reloadable debit card, or check no later than 14 days after the date the credit balance occurred on a student’s account.
Before making any disbursements, WGU determines and documents that a student remains eligible to receive the FSA funds. This includes the completion of entrance counseling as well as the completion of the first 30 days of the academic program for new students at WGU.
To receive TEACH Grants, students must have:
Students or parents, for a Direct Parent PLUS loan, become ineligible to receive federal financial aid funds on the date the student:
WGU offers a late disbursement to students who complete a payment period or withdraw during the payment period provided they meet the following conditions prior to the date they became ineligible:
Post -Withdrawal Disbursement (PWD)
FSA funds not disbursed before a student withdrew, but which the student has earned based on the Return calculation, is called a post-withdrawal disbursement.
Generally, a student is eligible to receive a post withdrawal disbursement of the earned FSA funds that was not received. However, WGU will not make a late disbursement at post-withdrawal even if a student otherwise meets the conditions for late disbursement in the following situations:
Paying a late disbursement (including PWD) of Federal Student Aid Grant funds
WGU may credit a student’s account with a late disbursement of Pell Grant, FSEOG, and TEACH grant funds for current institutional charges (tuition and fees) without the student’s permission. Excess funds are disbursed directly to students by ACH direct deposit, a reloadable debit card, or by check determined by the student within 14 days.
For post-withdrawal disbursements, WGU will make a disbursement of grant funds within 45 days of the date the University determined that the student withdrew.
Paying a late disbursement (including PWD) of Federal Direct Loan funds
WGU notifies the borrower prior to making any late disbursement of Federal Direct Loan funds and explains the borrower’s obligation to repay loan funds if they are disbursed confirming that the loan funds are still needed to pay for current institutional charges. Students may accept or decline any late disbursement of loan funds.
For post-withdrawal disbursements, WGU offers the disbursement of loan funds within 30 days of the date the University determined a student withdrew. Students have 14 days from the date on the last disbursement letter to accept or reject the offer; otherwise, loan funds are cancelled.
The written notification includes the following:
WGU may honor a late response and make the post-withdrawal disbursement based on an acceptance received from a student or parent, for a Direct Parent PLUS loan, after the University’s deadline. If authorization from students or parents is received after the deadline and the University declines to honor a late response, the University will notify the student (or parent) in writing of this decision.
If a student or parent submits a timely response accepting all or a portion of a late disbursement, WGU makes a late disbursement to the student no later than 180 days after the date the University determined the student withdrew, or for a student who did not withdraw, 180 days after the student became ineligible.
Time Frame for Submitting Disbursements
WGU submits FSA disbursement records no later than 15 days after making the disbursements or becoming aware of the need to adjust a student’s disbursement.
Article Number: 50742