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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)