How Often Do You Get FAFSA Money?
Understand how and when you receive federal student aid. Learn about the factors influencing FAFSA money disbursement and maintaining your eligibility.
The Free Application for Federal Student Aid (FAFSA) is an application that determines eligibility for federal financial assistance. FAFSA determines eligibility, but the actual receipt of funds, known as disbursement, is managed by the educational institution. The timing of receiving FAFSA money is not uniform and is influenced by several factors.
Understanding Financial Aid Disbursement
Educational institutions receive federal financial aid funds and apply them to student accounts. Schools generally disburse aid at the beginning of each academic term (semester or quarter). Funds are first applied to institutional charges like tuition, fees, and room and board. The school’s financial aid office coordinates disbursements based on the student’s enrollment status and the specific aid awarded.
Influences on Disbursement Timing
The timing of financial aid disbursements varies due to several factors. Each educational institution establishes its own disbursement schedule, which often aligns with its academic calendar, whether it operates on semesters, quarters, or trimesters. This institutional policy dictates when funds are released to student accounts.
The type of financial aid a student receives also impacts disbursement. Grants and scholarships are typically applied directly to the student’s account at the start of the term. Federal student loans, including Direct Subsidized, Unsubsidized, and PLUS loans, usually require the completion of specific steps, such as signing a Master Promissory Note and completing entrance counseling, before funds can be disbursed.
These loan funds are often disbursed in at least two installments over the academic year. For first-year undergraduate students who are first-time federal loan borrowers, there may be a mandatory 30-day delay after the start of the enrollment period before their first loan disbursement. Federal Work-Study funds are earned as the student works and are paid like regular paychecks, typically monthly.
A student’s enrollment status also affects aid amounts and disbursement timing. Students must often maintain at least half-time enrollment to be eligible for most federal grants and loans. If a FAFSA application is selected for verification, delays in submitting required documentation can postpone aid disbursement. Schools will not disburse funds until the verification process is completed.
Receiving Your Financial Aid
Once financial aid is disbursed to the school, it is first applied to institutional charges like tuition and fees. If disbursed aid exceeds these charges, the student receives a “credit balance” or “refund.” This excess money is for other education-related expenses like books, supplies, or living costs.
Schools are required to issue this credit balance to the student within 14 days of the aid being applied to the account or the start of the term, whichever is later. Common methods for issuing these refunds include direct deposit into a student’s bank account, a paper check mailed to the student, or a prepaid debit card. It is important for students to understand their school’s specific refund process and ensure banking information on file is accurate for timely receipt of any excess funds.
Maintaining Aid Eligibility
To ensure continued receipt of federal financial aid, students must meet ongoing eligibility requirements. A condition is maintaining Satisfactory Academic Progress (SAP). SAP standards involve three components: achieving a minimum cumulative grade point average (GPA), successfully completing a certain percentage of attempted credits (often around 67%), and completing the degree within a maximum timeframe, which is usually 150% of the published length of the academic program.
Changes in enrollment status, such as dropping classes or withdrawing from a course, can impact aid eligibility. If dropping a class causes a student to fall below the minimum required credit hours, it could lead to a reduction or cancellation of aid for that term. In some cases, students may be required to repay federal funds already received if they withdraw from classes or do not meet SAP standards, as aid is considered “earned” progressively throughout the enrollment period.