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. If the University obtains a written authorization from student or parent (as applicable), FSA funds may be used for other educationally related charges.
Prior year is any loan period or award year prior to the current loan period or award year. If the student's Title IV aid package includes-
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.
FSA funds are available to students based on six-month payment periods. 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 (opens new window) and certain eligibility requirements to receive these funds.
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 (opens new window) as well as the completion of the first 30 days of the academic program for new students at WGU.
Effective January 1, 2019, the University determines and documents that new students complete the first 50 days of the academic program before making a first disbursement of Direct Loan funds.
To receive TEACH Grants, students must have:
Whenever the University credits FSA funds to a student account and those funds exceed the student’s allowable charges, FSA credit balance occurs. The University pays the excess FSA funds directly to the student (or parent, in the case of Parent PLUS) as soon as possible but no later than 14 days after the balance occurred on the student account.
The credit balance is remitted to student through a third-party payment processor (NelNet) via the preferred method selected by the student:
Note: NelNet or WGU does NOT issue debit cards to students or endorse any card provider.
Note: Nelnet or WGU does NOT open a bank account on behalf of a student.
For students who cease attendance during the term or payment period, the University does not release any portion of the FSA credit balance prior to the completion of the Return of Title IV (R2T4) process.
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:
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:
WGU may credit a student account with a late disbursement of Pell Grant, IASG, 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 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.
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:
If students or parents submit a timely response accepting all or a portion of a late disbursement, WGU makes a late disbursement to student no later than 180 days after the date the University determined the student withdrew, or for students who did not withdraw, 180 days after the student became ineligible.
WGU submits FSA disbursement records no later than 15 days after making disbursements or becoming aware of the need to adjust a student’s disbursement.
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Article Number: 50742