Pell Grant Disbursement
Financial aid offices have several ways to disburse Pell Grant funds to eligible students. Pell Grant disbursement can be made through:
1) Account credit. Financial aid office can credit your school expense account for any outstanding education expenses
2) Check/Direct Payment EFT: Financial aid office can pay you directly by check or EFT
4) Cash Payment. Financial aid office can dispense cash to you for which the school gets a signed receipt.
The school must have authorization from the student to pay him or her by EFT. Usually, a school will use the Pell funds to credit the studentís account for any unpaid charges for tuition and fees (and room and board, if provided by the school), and then will pay the remaining Pell funds (if any) to the student for remaining living expenses.
The school can use a studentís Pell Grant to pay charges for tuition, fees, and room and board without the studentís permission. The school may apply Pell Grant funds to other educational expenses besides tuition and fees or room and board provided by the school only if the student gives written authorization. Payments can be made only for education expenses. If a credit balance remains after the Pell Grant is credited to the studentís account, the balance must be returned to the student unless the student provides written authorization for the school to hold the funds.
Pell Grant Early Payment Options
A school can pay a student before the beginning of a payment period if the studentís already registered for that payment period. The earliest a school can disburse a Pell Grant is 10 days before the first day of classes in the payment period. Schools that have a non-traditional term credit-hour program cannot pay a student until he or she has completed the coursework for the previous payment period.
If the school disburses the Pell funds before the payment period begins, but the student never actually begins attending any classes, the student must return the funds back to their financial aid office. Return. If the student begins attending some but not all of his or her classes, the school may have to recalculate the Pell Grant award.