BS5816 - Financial Aid Direct Payments to Students

1. Institutional Regulations
   1. Students will receive “direct pay” checks for the amount of their authorized financial aid less charges made against the aid for tuition and fees or any other outstanding indebtedness.
   2. The release of these checks is contingent upon funding source regulations and restrictions. Every effort will be made to release these checks as soon as possible.
2. Procedure
   1. Financial Aid will initiate a computer listing showing students with Financial Aid in excess of amounts charged for registration and related expenses. It is that section’s responsibility to then initiate, via contact with Data Systems, requests for “direct pay” checks for these amounts.
   2. Checks, when printed, are initially reviewed by Financial Aid and then given to Student Accounts for distribution to students and preparation of manual journal to reflect these disbursements in Financial Accounting System.
   3. Prior to the release of any check representing a loan, Student Accounts will insure that the student has signed a promissory note, and if applicable, a truth in lending disclosure. Original or applicable copies of the truth in lending disclosure will be retained in the student’s Student Financial Services folder and Student Accounts individual loan file. The promissory note will be retained in the Student Accounts individual loan file.
   4. Restriction on Release of Checks
      1. Prior to the release of any Financial Aid Check, Student Accounts will determine if the student recipient has any indebtedness to the college, and if so, insure that this indebtedness is paid before balance of proceeds of check is given to the student. Student Accounts will also confirm enrollment before releasing loan check proceeds.
         1. Payment of the indebtedness may be made separately by the student, or may be withheld from the check after being endorsed by payee student.
         2. Indebtedness is identified as being any charges owed the college to include, but not limited to, tuition, fees, library and parking charges.