When the total amount of the Title IV grant assistance earned as of the withdrawal date exceeds the amount disbursed to the student, the difference is treated as a post-withdrawal disbursement. Following a R2T4 calculation, an institution follows the process outlined below if a post-withdrawal disbursement is required.

Crediting/Disbursement

If a post-withdrawal disbursement is required, the institution credits a student’s account with the post-withdrawal disbursement of Title IV grant funds. The Accounts Receivable office obtains a student’s authorization to credit for any charges other than tuition and mandatory fees. If the student does not provide this authorization, the funds are offered, and the student is notified he or she may have a remaining balance with the institution. Up to $200 in Title IV aid can be applied for charges incurred during the prior award year. Authorization is not required in this scenario unless a portion of the charges are educationally related but not tuition and mandatory fees.

The institution credits the student’s account with the post-withdrawal disbursement for current charges within 30 days of the date of determination. Disbursement of any amount of a post-withdrawal disbursement of grant funds is made as soon as possible but no later than 45 days after the date of the school’s determination that the student withdrew and no later than 14 days after the account is credited. Since the institution does not process federal loan funds, the school is not required to obtain student permission prior to disbursement.

The institution provides disbursements to individuals via check or direct deposit. Disbursements are handled according to the institution’s disbursement policy. In accordance with guidance provided in Volume 5 of the Federal Student Aid Handbook, the institution does not require individuals to pick up post-withdrawal disbursements in person. Disbursement checks are mailed in the event requests are made.