Three-Day Rule for FFELP Funds

The U.S. Department of Education (ED) recently issued a Policy Bulletin, dated June 11, 1999, reminding institutions that the time frame for the disbursement of FFELP funds to the borrower has been changed. Effective July 1, 1999, the time frame for the disbursement of funds to the borrower is reduced from ten days to three days for funds received by Electronic Funds Transfer (EFT) or master check.  ED notes that the change to the time frame for the "initial period" does not impact either the "conditional or the return periods" as illustrated in the 1998-99 Federal Student Aid Handbook, Chapter 10, FFEL Program, pages 10-39.

A copy of the Policy Bulletin can be found on ED's web site at http://ifap.ed.gov. If you are unable to access this web site and would like a copy, please contact Lynda Reid at (801) 321- 7211. Any questions regarding this bulletin can be directed to the UHEAA Policy and Training Department at (801) 321-7166 or by e-mail at cjudd@utahsbr.edu.