Standard Operations Procedure
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TitleIVFundsDisbursement.docxTitle IV Funds Disbursement
Policy
When a student becomes eligible to receive Title IV funding, Delaware State University (DSU) must notify each of the amount of funds the student can expect to receive from applicable Federal Student Aid (FSA) programs. The student must provide authorization, by completing the Financial Aid Authorization form, before the Student Accounts Office can use FSA funds to pay for allowable educationally related charges other than tuition, fees, room, and board, and/or apply FSA funds to prior-year charges, not exceeding $200.00, other than tuition, fees, room, and board.
As required by federal regulations, all Title IV funds must be disbursed to students, their parents, or credited to students’ Bursar Accounts as soon as administratively feasible, but no later than three business days after the funds were received in the “Federal Funds - G5” Account. To comply with the excess cash regulations, (Volume 5, Chapter 2 of the Federal Student Aid Handbook) it is the responsibility of the Financial Aid Office to ensure DSU does not draw down more cash than can disburse over the next three days. DSU must submit disbursement records no later than 30 days after making a disbursement or becoming aware of the need to adjust a student’s disbursement.
As a result of this rigid timeframe, DSU will adhere to a strict schedule when issuing Title IV funds: Students will be awarded Title IV funds on Mondays from the Financial Aid Department. That is, students’ awards will be calculated and funds will be requested from the federal government (COD). Title IV funds will be applied to students’ accounts on Mondays. The Finance Office will draw down these funds from “Federal Funds - G5” bank account on Tuesdays. All changes to the student’s account will appear on the student’s billing notice.
Purpose
The Issuance of Title IV Funds policy is meant to comply with federal regulations while disbursing funds to DSU students.
Procedure
1. Mondays, the Financial Aid Coordinator will calculate and award Title IV funds.
2. Mondays, the Student Accounts Office will apply Title IV funds to the students
3. account.
4. Tuesdays, the Finance Office will draw down the funds from the “Federal Funds - G5” bank account.
5. Tuesdays, refund check request to the Finance Office will occur.
Student Account Refund
Policy
Following the add/drop period and/or the application of financial aid awards, some students may have a credit balance on their Delaware State University (DSU) Student Account. A Federal Student Aid (FSA) credit balance occurs whenever DSU credits FSA program funds to a student’s account and the total amount of those funds exceeds the student’s allowable charges. As per FSA regulations, if a credit balance occurs, DSU must pay the credit balance directly to the student as soon as possible, but no later than 14 calendar days after the date the balance occurred on the student’s account.
The Student Accounts Office will review reports daily to determine if any students are due a refund. In the event that a refund is required, the Student Accounts Office will then process the refund by means of the option the student selected on their account. This will include processing options for the refund. The options are:
a) Processing refund by EFT through Bank Mobile, or
b) Having a refund check mailed to their place of residence via standard U.S. mail
Once Student Accounts determines the desired method of collection, a check may be sent to Bank Mobile or printed and disbursed according to the student’s wishes. For checks mailed to the student, if a student does not cash his/her check within 180 calendar days of original notification, the student forfeits the refund and the funds will be returned to the Department of Education (ED) or location of origination.
Purpose
A refund is created to reconcile the credit balance on a student’s account in accordance with FSA regulations.
Procedure
1. If a student wishes to receive a refund check:
· To create a refund in Banner:
1. Go to screen ___________
2. Enter the student’s I.D. number and hit tab
3. Click on the _________ button
4. Click on the Customer Detail button
5. Click on the Adjustment button
6. Enter the Transaction Date & Time, Term, Transaction Type: BALNCE/REF, and
Transaction Amount
7. Click the Next Transaction button
· To create a refund check:
1. Print a copy of the student’s Billing Statement
1. In the student’s Customer Detail window click the Statement button
2. Enter the Previous Statement Date: first day of the trimester, Current Statement
Date: current date, F.A. Term ID
3. Select Activity/All from the Balance Select dropdown menu
4. Select Print (no history record) from the Statement Run Type dropdown menu
5. Click Begin Statement button
6. Click Run Report
7. Review the billing statements and click Print
8. Highlight the Acct Balance Refund entry
2. Print a copy of the Cash Disbursement form from the Document Trail Folder and fill it out.
3. Submit the billing statement and Cash Disbursement form to the Accounting Specialist to create the check.
Once the check has been printed, it is to be mailed to the student’s listed home address.
