ES4321 - Disbursement of Federal Loans for Distance Education Students

1. Institutional Regulations
   1. The Financial Aid Office will establish criteria to delay the disbursement of Federal Student Loans to students who are first-time federal student loan borrowers at DMACC (having never received a student loan during a period of attendance at DMACC) attending every course by distance (online) education.
   2. The Financial Aid Office will establish criteria for multiple disbursements of Federal Student Loans to students who are first-time federal student loan borrowers at DMACC (having never received a student loan during a period of attendance at DMACC) attending every course by distance (online) education.
   3. ES4321 does not apply to Federal Pell Grants.
   4. ES4321 does not impact the ability for students to purchase required books and required supplies in the DMACC bookstore utilizing anticipated loan funds.
   5. The authority for DMACC to delay the disbursement of Title IV funds for student attending via distance education is outlined in Dear Colleague Letter GEN-11-17.
   6. ES4321 cannot be appealed.
2. Procedure
   1. DMACC students must complete the Free Application for Federal Student Aid (FAFSA), prior to June 30^th of each award year.
   2. The applicant must demonstrate financial need for the federal student loan and be making Satisfactory Academic Progress.
   3. The applicant must not have financial resources in excess of the Cost of Attendance to be eligible for the Federal Direct Loan.
   4. Students enrolled in all online courses, have accepted a Federal Direct Loan via the Web Info System, and are first-time borrowers at DMACC will be identified via query/report on at least a weekly basis.
   5. The weekly report will be provided to the designated Financial Aid Specialists for further loan processing.
   6. The Financial Aid Office will establish the disbursement dates for identified students as follows:
      1. First-time federal student loan borrowers at DMACC (having never received a student loan during a period of attendance at DMACC) attending every course by distance (online) education will have a federal student loan originated for no greater that one loan period (term).
      2. Two equal disbursements of equal weights will be established for the term contained within the loan period.
      3. The student’s first disbursement of Direct Loan funds will occur no earlier than 45 days after the start date of the student’s period of attendance. Students enrolled in a period of attendance that will result in the 45^th day of the term occurring after the midpoint of the term will have their first disbursement established as the midpoint of the term.
      4. The student’s second disbursement will occur no earlier than the day following the quit attending (QA) reporting period of the term for which the loan has been established.
      5. Students who have been reported by their instructors as having quit attending (QA) and are no longer attending at least halftime will be subject to the cancellation of the second loan disbursement.
   7. A clear notice will be sent via US Mail or student email to each student subject to the modification of their disbursement dates by the designated Financial Aid Specialist.
   8. ES4321 cannot be appealed.