Updated Regulation on Financial Aid Disbursements

Greetings from the Financial Aid Office,

The Financial Aid Office would like to provide all Washburn University students with an update on how Federal Direct Student Loans will be disbursed in the future as not all Federal Direct Student Loans will be disbursed immediately at the beginning of a semester.  Traditionally, Federal Direct Loans were disbursed at the beginning of the semester or within 7-10 days of accepting them on your MyWashburn account. This change in Federal Student Aid regulations affects first-time, first-year undergraduate borrowers and any Washburn University students who will be attending Washburn University for one semester.

Effective immediately:

1) Disbursement of the first installment of any Federal Direct Student Loans to a first-time, first-year undergraduate borrower will be delayed until 30 calendar days after the start of the semester.

2) Disbursement of the first installment of any Federal Direct Student Loans to any student whose loans are processed for a single payment period will be split between 2-equal disbursements. The first disbursement can be made at the beginning of the semester while the second disbursement cannot be made prior to the midpoint of the semester.

Please read the following Q & As for details.

Q1. Who is affected by this changed?

A1. The following types of students are affected by this change:

  1. First-time, first-year undergraduate borrower – This applies to you if, you are a first-year undergraduate borrower and you have never taken out one of the Federal Direct Student Loans stated in Q2.
  2. Students who are attending Washburn University for one semester. For example:
    1. You are graduating during the Fall semester at Washburn University.
    2. You are starting at Washburn University in the Spring semester.
    3. You are receiving one of the Federal Direct Student Loans during the summer term.

Q2. What are the Federal Direct Student Loans affected by this change?

A2. The Federal Direct Student Loans affected by this change are:

  1. Federal Direct Subsidized Stafford Loan
  2. Federal Direct Unsubsidized Stafford Loan
  3. Federal Direct Parent PLUS loan
  4. Federal Direct Graduate PLUS loan

Q3. Is the Federal Perkins Loan affected by this change?

A3. No, Federal Perkins Loans are not affected by this change.

Q4. I am a first-time, first-year student undergraduate borrower, what is the change?

A4. The date for your first disbursement of a loan will be delayed 30 days. Any subsequent loan you receive after this first disbursement will not be delayed.

Q5. I am attending Washburn University for one semester, what is the change?

A5. Your student loan disbursement will be divided into 2 equal disbursements throughout the semester.  The first disbursement will be at the beginning of the semester and the second semester will be after the midpoint of the semester.

Q6. I attend Washburn University during the Fall and Spring semester and will be attending during the summer term, does this apply to me?

A6. Yes, financial aid for the summer term is awarded and processed as a single semester. Disbursement dates for the summer are yet to be determined and will be posted on the Financial Aid’s and the Business Office’s website.

Q7. How does this impact my refund?

A7. If your loan disbursement is impacted by these rules, you will not receive your refund until your disbursement date.

Q8. I am affected by these changes and need to pay my balance, what can I do?

A8. You can sign up for the new payment plan created by the Business Office.  It allows you to establish a 3 part payment plan.

Q9. I am a previous borrower, does this affect me?

A9. If you are attending Washburn University for the Fall and Spring semesters, this does not affect you.  It would only affect you if you attend Washburn University during the Summer semester or if you are graduating in the Fall semester.

 

Speak Your Mind

*