2/10/2005
ED Clarifies Guidance on Post-120 Day Late Disbursement Procedures

At the recent Electronic Access Conference, the Department of Education (ED) clarified the procedures for requesting a late disbursement beyond 120-days. Earlier guidance was provided by ED as a result of the November 2002 regulations and was included in OGSLP’s July 2004 online newsletter.

These requests are designed to be used for scenarios where borrowers are not at fault for causing the late disbursement. The revised procedures, which include new contact information and some additional requirements are outlined below:

How to make a request
To make a request for a late disbursement, the school must FAX a request to:

COD School Relations Center
Late Disbursement Request
877.623.5082

Required information
The request must include:

• School’s name and OPE ID

• Contact person’s name at the school, title, phone and fax numbers, and e-mail address

• Name and SSN of the student (and parent’s name and SSN for PLUS)

• Type and amounts of Title IV to be disbursed

• Explanation of why the disbursement was not made and why the student was not at fault

• Loan type (subsidized, unsubsidized, or PLUS)

• Certification date

• Loan period begin and end dates

• Lender’s name

• Answers to the following questions:

  • Did the student complete the loan period?

  • If the student did not complete the loan period, on what date did the student cease to be enrolled at least half-time?

  • Is this the first disbursement of the loan or is it a second or subsequent disbursement?

Federal Student Aid (FSA) will notify the school by email of the request approval or denial. ED expects to include these changes in the 2004-05 Federal Student Aid Handbook as a correction. If additional clarification is needed, you may contact OGSLP’s Loan Services department at 405.234.4331 or 800.442.8642.