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IFAP
FSA Information for Financial Aid Professionals
U.S. Department of Education

Citations: (R)668.163
AsOfDate: 12/1/94

Sec. 668.163 Requesting funds.

(a) General. (1) The Secretary pays an institution in

advance, or by reimbursement, for the institution to disburse title IV,
HEA program funds, other than FFEL program funds, to students who
qualify to receive those funds.

(2) Advance payment method. (i) Under the advance

payment method the Secretary accepts an institution's request for
cash and transfers electronically the amount requested into a bank
account designated by the institution.

(ii) An institution's request for cash must not exceed the

amount of funds the institution needs immediately to make
disbursements to students. The institution must make the
disbursements as soon as administratively feasible but no later than
three business days following the date the institution received those
funds.

(3) Reimbursement payment method. (i) To receive

payment of title IV, HEA program funds under the reimbursement
method an institution must first make disbursements to eligible
students before it submits a request for cash.

(ii) The amount of the institution's request for cash may not
exceed the amount of the actual disbursements the institution made to
students included in that request.

(iii) The Secretary may require the institution to submit

documentation that each student included in the request was eligible to
receive and received payment for the title IV, HEA program funds for
which the institution is seeking reimbursement. The Secretary
considers that an institution has made payments to those students if
the institution has either credited the students' accounts or paid the
students directly with its own funds.

(iv) The Secretary approves the amount of the institution's

request and transfers electronically that amount into a bank account
designated by the institution if the Secretary determines that the
institution--

(A) Determined properly the eligibility of each student for

title IV, HEA program funds;

(B) Made payments for the correct amounts of title IV,

HEA program funds to the students included in its request; and

(C) Submitted any documentation required under paragraph

(a)(3)(iii) of this section.

(b) Receiving FFEL Program funds. In certifying a loan

application under Sec. 682.603 for a borrower who is not subject to the
delayed disbursement provisions in Sec. 682.604(c)(5), an institution
may not request that a lender provide by EFT or master check the
loan proceeds for that borrower earlier than 13 days before the first
day of a student's period of enrollment.

(Authority: 20 U.S.C. 1094)