Disbursement - Credit Hours Policy Student Financial Aid - Policy and Procedures

  1. Back to Policies and Procedures Page
  1. Purpose
    1. This policy is established in compliance with federal regulations to promote institutional integrity in the administration of federal financial aid programs. Specifically, this policy defines how the institution will disburse funds in such a way that meets federal guidelines and assures fiscal responsibility while reducing potential student and school liability.
  2. References
    1. Federal Student Aid (FSA) Handbook Volumes 3 and 4
    2. Utah State Code Title 53B
    3. Student Code of Federal Regulations, 34 CFR 668
    4. Davis Technical College Student Financial Aid Satisfactory Progress Policy
    5. Davis Technical College Grading and Performance Policy
    6. Davis Technical College Financial Aid Offers and Packaging Policy
  3. Definitions
    1. Completed Hours: Also referred to as “Standard Hours” or “Progress Hours.” Refers to credit hours completed by the student that counts toward student progress.
    2. Payment Period: For programs that are one academic year or less in length, the first payment period is the period in which the student successfully completes half of the credit hours of the 1st academic year. Second payment period is when the student successfully completes remainder of the credit hours and all the weeks of instruction for the program’s defined academic year. For programs greater than an academic year in length, subsequent payment periods are prorated based on the remaining hours in the program.
    3. Demonstration of Competency – Also referred to as “Comp Demo.” A written test and/or demonstration of skills to faculty allowing students to show they have mastered competency requirements of a given course or module.
    4. Alternate Documentation – Also referred to as “Alt Doc.” Documentation provided by individual students to faculty accepted in lieu of the completion of course work or the demonstration of competency. Documentation may include report cards or transcripts showing prior course completion at the college or another educational institution, industry certification or licensure, and/or demonstration of competency through prior knowledge, skill, or experience. Also called Prior Learning Assessment (PLA).
  4. Policy
    1. Academic Year: The academic year for number of credit hours and weeks of instruction will vary based on the program. Defined academic year for each program listed below:
      1. Defined Academic Years for Title IV Eligible Programs
        Title IV Eligible Programs Credit Hours Credits Weeks
        Esthetician 16 24 30
        Master Esthetician 16 24 30
        Pharmacy Technician 17 24 30
        Advanced Automotive 20 24 30
        Automotive Technology 20 24 30
        CNC Machining 20 24 30
        Information Technology 20 24 30
        Heating and Air Conditioning 24 24 30
        Welding Technology 24 24 30
        Composite Materials Technology 25 25 30
        Practical Nursing 26 26 30
        Dental Assisting 29 29 30
        Architectural and Engineering Design 30 30 30
        Automation and Robotics 30 30 30
        Business Administrative Services 30 30 30
        Culinary Arts 30 30 30
        Cybersecurity 30 30 30
        Diesel/Heavy Duty Technology 30 30 30
        Medical Coding and Billing 30 30 30
        Software Development 30 30 30
        Web and Graphic Design 30 30 30
        Hair Designer 30 25 30
        Medical Assistant 32 24 30
        Cosmetology 42 26 30
        Surgical Technology 37 25 30
    2. Payment Periods: Students are paid in equal disbursements called payment periods. Payment periods are defined at the time of packaging based on requirements as outlined in the most recent version of the FSA handbook.
      1. Alt Doc and Comp Demo can reduce the length of subsequent payment periods, therefore decreasing eligibility and the amount of the subsequent disbursements.
      2. Students must successfully complete the credit hours before progressing to the next payment period. At the end of each payment period a student’s progress will be reviewed to ensure that the student is on track to complete their program within 150% of the published program length. Students not on track to complete the program within 150% will result in the loss of financial aid eligibility.
      3. Tuition and Fees: a Pell sponsorship will be added to a student’s file for the estimated amount of all tuition and fees for the payment period. The Pell tuition sponsorship can only cover the first attempt of required tuition and fees for the payment period. Fees include program fees and inclusive access fees.
      4. Residual Pell Funds: If students have Pell eligibility that exceeds the estimated amount of tuition and fees for the payment period those funds will be added to a residual sponsorship. Upon request funds on the residual sponsorship can be used at the bookstore on the first day of class for books and supplies.
    3. Disbursement Process: The disbursement process is completed every 2-4 weeks. If at the time of disbursement, the student has remaining residual sponsorship funds those funds will be released to the student if a student has an active schedule.
  5. Procedures
    1. Completion of credit hours and progress will be evaluated prior to each disbursement
      1. At the time of disbursement, files will be updated with the Department of Education through the Common Origination and Disbursement (COD) system. These files must be approved and processed within COD before a disbursement is made to a student.
    2. For students who are making adequate progress and have an active schedule, aid will be disbursed within 6 weeks of the beginning of each payment period.
    3. Students who are not making adequate progress will be held to the Satisfactory Academic Progress Policy.
    4. All disbursements made to students will be directly deposited to the account provided by the student or mailed to the address on the student’s file.
Policy migration in progress

Davis Tech is in the process of migrating our policies from PDF to HTML format to conform to Title II (ADA) requirements. During this transition period, the latest approved version of the policy is available (below) in pdf format, but may contain ADA Compliance errors.

Printable PDF

Effective Date: 01 July 2025

  • Approvals and Notes
  • President’s Council Approval: 25 March 2024
  • Revision Date: 02 October 2023
  • Effective Date: 01 July 2023
  • President’s Council Approval: 12 June 2023