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FIRST PAYMENT OPTIONS

In general, schools are not allowed to make a disbursement of a Pell
award without a valid output document. However, the school may make Verification
an interim disbursement to a student who is selected for verification 34 CFR
(including a student selected for verification by the school rather than the 668.58
CPS). See The Verification Guide for more information.

If a student is not selected for verification, the school may not make a Must have
disbursement to the student until it has a valid output document. If the valid output
student needs to make corrections to his or her data, or the financial aid document
administrator wishes to use professional judgment to adjust the student’s
data, the student must submit the SAR for reprocessing (using Part 2) or
the school must make the changes through EDExpress and receive the
new output document before making a disbursement.

TIMING OF PAYMENTS

The school may use its discretion in disbursing funds within a payment 34 CFR
period to best meet a student’s needs. For instance, some schools pay 690.76(a)
students on the first day of class in a payment period, while others wait
until the end of the add/drop period. Other schools pay the student in
monthly installments to help meet living expenses throughout the
payment period. (Note that if the school rations payments to students by
crediting the entire payment for the payment period to the student’s
account and making periodic payments to the student from these funds, it
must have the student’s written authorization.) In all cases, however, the
full amount due the student for a payment period must be disbursed to
the student before the end of the payment period.

The school may Retroactive
1998-99 pay a student payment
Award Year retroactively for
any completed
payment periods
within the award
Student enrolls year if the student
Student Student
completes does not in summer term, was eligible for
fall term enroll in and school payment in those
spring term receives SAR or periods. Thus, if the
ISIR for 1998-99
school receives a
Even if the school does not receive the student’s output valid output
document until late in the award year, the student can be document for the
paid for previous eligible payment periods in the same student while he or
award year (in this case, the fall term, assuming that the she is enrolled as
summer term is part of the 1998-99 award year).
an eligible student

Disbursements 4-59