19 Tex. Admin. Code § 22.2 - Timely Distribution of Funds
(a) All institutions participating in the
financial aid programs outlined in chapter 22 shall follow the guidelines for
the timely distribution of funds, as outlined in this section:
(1) Timely Disbursement. Institutions shall
disburse state student financial aid funding to a student recipient's account
or, in the case of work-study, through a paycheck, no later than three business
days after receiving the funds. Undisbursed funds must be returned to the
Coordinating Board no later than six business days after the receipt of funds.
Gift aid and work-study funds for which a student is no longer eligible may be
disbursed to a different eligible student for whom funds have not yet been
requested in order to meet the timely disbursement requirement.
(2) Timely Determination of Ineligibility.
For state student financial aid funding already disbursed to a student, except
work study, institutions shall return funds to the Coordinating Board within
forty-five calendar days of a student becoming ineligible for the funding. Gift
aid funds for which a student has been determined ineligible may be disbursed
to a different eligible student for whom funds have not yet been requested in
order to meet the timely determination of ineligibility requirement. In all
cases, an institution must provide notification to the Coordinating Board
regarding the change in student eligibility, as appropriate for the particular
student financial aid program.
(3)
Timely Cancellation. For state student financial aid funds already disbursed to
a student, except work-study, institutions may return funds to the Coordinating
Board within 120 calendar days of disbursement in situations where a student
has notified the institution of his or her decision to cancel the financial
aid. Gift aid funds for which a student has made the decision to cancel may be
disbursed to a different eligible student for whom funds have not yet been
requested in order to meet the timely cancellation requirement. In all cases,
an institution must provide notification to the Coordinating Board regarding
the student's decision to cancel financial aid, as appropriate for the
particular student financial aid program.
(b) Re-offering of funds. Funds made
available from financial aid adjustments, as detailed in §22.8 of this
subchapter (relating to Financial Aid Adjustments) are subject to the
requirements of timely determination of ineligibility in subsection (a)(2) of
this section.
(c) Late
Disbursements of Gift Aid.
(1) A student may
receive a gift aid disbursement after the end of his/her period of enrollment
if the student:
(A) Owes funds to the
institution for the period of enrollment for which the grant is being made; or
(B) Received a student loan that
is still outstanding for the period of enrollment.
(2) Funds that are disbursed after the end of
the student's period of enrollment must be used to either pay the student's
outstanding balance from his/her period of enrollment at the institution or to
make a payment against an outstanding student loan received during that period
of enrollment. Under no circumstances are funds to be released to the
student.
(3) The institution shall
retain documentation proving the late-disbursed funds were used to make a
payment against an outstanding balance at the institution from the relevant
period of enrollment and/or to make a payment against an outstanding loan taken
out for the period of enrollment.
(4) Unless granted an extension by the
Coordinating Board, late disbursements must be processed prior to the end of
the state fiscal year for which the funds were allocated to the
institution.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
All institutions participating in the financial aid programs outlined in Chapter 22 shall follow the guidelines for the
(1) Timely Disbursement. Institutions shall disburse state student financial aid funding to a student recipient 's account or, in the case of work-study, through a paycheck, no later than three business days after receiving the funds. Undisbursed funds must be returned to the Board no later than six business days after the receipt of funds. Gift aid and work-study funds for which a student is no longer eligible may be disbursed to a different eligible student for whom funds have not yet been requested in order to meet the timely disbursement requirement.
(2) Timely Determination of Ineligibility. For state student financial aid funding already disbursed to a student, except work study, institutions shall return funds to the Board within 45 calendar days of a student becoming ineligible for the funding. Gift aid funds for which a student has been determined ineligible may be disbursed to a different eligible student for whom funds have not yet been requested in order to meet the timely determination of ineligibility requirement. In all cases, an institution must provide notification to the Board regarding the change in student eligibility, as appropriate for the particular student financial aid program.
(3) Timely Cancellation. For state student financial aid funds already disbursed to a student, except work-study, institutions may return funds to the Board within 120 calendar days of disbursement in situations where a student has notified the institution of his or her decision to cancel the financial aid. Gift aid funds for which a student has made the decision to cancel may be disbursed to a different eligible student for whom funds have not yet been requested in order to meet the timely cancellation requirement. In all cases, an institution must provide notification to the Board regarding the student's decision to cancel financial aid, as appropriate for the particular student financial aid program.