Lesson 3: Disbursements, Timeframes, and Policies and Procedures

Question 1

What is an interim disbursement?

Answer 1

a disbursement a school may make, under certain conditions, prior to completing the verification process. This disbursement is optional.

Question 2

What two Title IV programs are subject to interim disbursement?

Answer 2

Pell and Work-Study

Question 3

What is overpayment?

Answer 3

any financial aid paid to a student in excess of the amount he of she is eligible to receive.

Question 4

What is an award cycle?

Answer 4

the series of steps, from receiving application information to awarding aid, a schools uses to determine a student’s eligibility for financial aid.

Question 5

When can a school complete verification?

Answer 5

1. when a student’s application (SAR or ISIR) is received
2. before making a tentative award offer
3. after making a first, but before the second disbursement

Question 6

Define policy and procedure.

Answer 6

A policy is a statement of how an institution will address or handle a particular topic. A procedure is the step or steps an institution takes to implement a policy.

Question 7

What does a verification status code ‘V’ mean?

Answer 7

Verification was completed on records selected for verification by either CPS or the school.

Question 8

What does a verification status code ‘W’ mean?

Answer 8

Applicant selected and institution has chosen to pay initial Pell grant disbursement without documentation.

Question 9

What does a verification status code ‘S’ mean?

Answer 9

applicant selected by CPS, but not verified because the application met one of the exclusions.

Question 10

What does a ‘blank’ verification status code mean?

Answer 10

applicant not selected by CPS of the institution, so verification is not performed.