Summary: Discontinuation of "Late" Late Disbursement Approval Request Process Effective July 1, 2008

Publication Date: July 1, 2008

Author: William Leith, Acting General Manager, Application, Operations and Delivery Services, Federal Student Aid

Summary: Discontinuation of "Late" Late Disbursement Approval Request Process Effective July 1, 2008

Posted on 07-01-2008

As explained in a May 20, 2008 Electronic Announcement posted on the Information for Financial Aid Professionals (IFAP) Web site, final regulations published on November 1, 2007 amended the provisions that allow schools to make late disbursements of Federal student aid authorized under Title IV of the Higher Education Act of 1965, as amended (HEA). As a result of these changes, which are now in effect, we have discontinued the process by which schools previously requested approval to make late disbursements beyond the regulatory late disbursement period. Late disbursements beyond the regulatory late disbursement period were commonly referred to as "late" late disbursements.

The purpose of this communication is to remind schools and third party servicers of the regulatory change and the discontinuation of the "late" late disbursement approval request process.

Regulatory Change

Effective July 1, 2008, the new regulations modify the late disbursement provisions in 34 CFR 668.164(g) as follows:

1)	The period for making a late disbursement is increased from 120 days to 180 days.
2)	The provision that allows schools to request approval from the U.S. Department of Education to make late disbursements beyond the late disbursement period is eliminated.

Discontinuation of "Late" Late Disbursement Approval Request Process

Effective July 1, 2008, the "late" late disbursement approval request process is discontinued.

• We will process all "late" late disbursement approval requests that were received by fax through midnight (ET) on Monday, June 30, 2008.
  We request the community's patience and understanding as we process the large volume of requests received through the process end date. We will complete the processing of these requests as expeditiously as possible.
  
• We will not accept or process "late" late disbursement approval requests received on or after Tuesday, July 1, 2008.
  
  Any request associated with the discontinued process that is received from this point forward will not be processed and will be disposed of in a manner that protects the confidentiality of the personally identifiable information included in the request.

Contact Information

If you have any questions about the information in this announcement, you may e-mail fsalldprocessing@ed.gov or call Nicki Meoli at 202/377-4031.