Federal Student Aid Disbursements

Standard Disbursement
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:

 


Late Disbursement
Students or parents, for a Direct Parent PLUS loan, become ineligible to receive federal financial aid funds on the date the student:

 

  • For the Direct Loan program, is no longer enrolled at least half time, or
  • For the FSA Grant programs (Federal Pell Grant, FSEOG, and TEACH grant), is no longer enrolled at WGU for the award year


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:

 

  • For Federal Pell Grant, FSEOG, Direct Loans, and TEACH – the Department processed a SAR/ISIR with an official EFC
  • Additional requirements:
    • FSEOG – student was awarded a grant
    • Direct Loans – loan record was originated
    • TEACH Grant – the grant was originated


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:

 

  • Second or subsequent disbursement of Direct Loan funds unless the student has graduated or successfully completed the loan period
  • Disbursements of Direct loan funds for which the borrower has not signed a promissory note
  • A first disbursement of Direct Loan funds to a first-year, first-time borrower who withdraws before the 30th day of the program of study
  • Disbursements of Federal Pell Grant funds to a student for whom the University did not have a valid SAR/ISIR by the deadline established by the secretary in the Federal Register
  • Federal Pell Grant for a subsequent payment period when a student has not successfully completed the earlier payment period for which the student has already been paid


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:

 

  • The type and amount of the loan funds the University wishes to credit to the student’s account or disburse directly to the student or parent, for Direct Parent PLUS loan
  • Explanation that a student or parent, for a Direct Parent PLUS loan, may accept or decline all or a portion of the funds
  • Explanation regarding the obligation to repay loan funds whether they are disbursed to the student’s account or directly to the borrower
  • The direct disbursement of loan funds that WGU wishes to credit to a student’s account may not be received by the student or parent, for a Direct Parent PLUS loan, unless the University is in agreement to do so
  • Information that no PWD will be made if the student or parent, for a Direct Parent PLUS loan, does not respond within 14 days of the date of the letter, and 
  • Information about the advantages of keeping loan debt to a minimum


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

Version History
Revision #:
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Last update:
‎06-09-2017 01:59 PM
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