Disbursement 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 Student Attendance Policy
    6. Davis Technical College Grading and Performance Policy
    7. 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 work completed by the student that counts toward student progress.
    2. Enrolled Hours: Hours a student is scheduled to be in class.
    3. Attended Hours: Hours a student physically attends class.
    4. 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 completed half of the clock hours and half of the weeks of instructional time. Second payment period is when the student completed the remainder of the program. For programs greater than an academic year in length, subsequent payment periods are prorated based on the remaining hours in the program.
  4. Policy
    1. Academic Year: The academic year will be defined as 900 clock hours and 26 weeks of instruction for all programs.
    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 Early Completion can reduce the length of subsequent payment periods, therefore decreasing eligibility and the amount of the subsequent disbursements.
      2. Students must successfully complete the attended hours and progress hours before progressing to the next payment period. Failure to complete the payment period within 150% of the scheduled hours will result in a lost of subsequent disbursements. Example: a student must successfully complete 450 hours by hour 675 to maintain 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.
      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 hours and progress will be evaluated prior to each disbursement.
      1. At the time of disbursement files will be updated with the 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 attendance 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 and/or attendance 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: 22 December 2022

  • Approvals and Notes
  • Revised: 12-12-2022
  • Revised: 06-27-2022
  • Revised: 07-20-2018
  • Reviewed: 01-31-2014
  • Revised: 03-12-2012
  • Effective Date: 07-01-2011
  • President’s Council Approval: 04-02-2011