Denial of disbursement

My school has not disbursed my Pell grant for this school year. My financial situation changed during this school year and my school performed a professional judgment in order to adjust my EFC. After this my Pell grant amount increased. This was official in November; however the funds have yet to be disbursed. My school tells me that they are waiting for the Dept. of Ed. to release the funds; however I contacted the Dept of Ed in order to find out what the hold up was. They informed me that the money is released in the beginning of the federal academic year and it is up to the school to disburse the funds. They also told me that the school can refuse to disburse Pell grant funds. I was wondering under what circumstances can schools refuse to give student's their Pell grant money?

ANSWER:

Your question of under which circumstances can schools refuse to give students their Pell money does not seem to fit your circumstances.

Your school has not refused to disburse your money; they are claiming they haven't received it yet. The school is under no obligation to disburse funds until they receive them (although they can do so, using school funds, if they wish).

If you have a billing statement or an invoice showing the estimated amount that you are eligible to receive (from your changed EFC)- that is not an actual disbursement. It does not mean that the school has your money and is holding it.

If you are eligible to receive this money; if you are making satisfactory academic progress and you successfully completed the credits you attempted in the fall, your school must disburse the funds they receive for you by the end of the last payment period in this award year.

Keep checking with your financial aid office about the situation until it is resolved, and call the Department of Education again and see if they can give you specific details about your grant, not general information about when they give schools their money.