USA Funds Advises Schools and Lenders of Policy on Reissuing Loan Disbursements

USA Funds^® has implemented a revised loan disbursement reissue policy focused primarily on changes to the timing of the reissued loan disbursements.

Most aspects of the policy were effective for reissues requested by the school on or after July 1, 2008.  USA Funds is publishing the policy now because it differs from Common Manual policy.

The policy provides that the lender may disburse, and the school may deliver, a reissued loan disbursement, if the disbursement can be delivered by the school not more than 180 days following the last date of the loan period for which the funds were intended, or the student’s last date of at least half- time enrollment, whichever is earlier.

The USA Funds policy also provides that the lender may reissue, and the school may deliver, a reissue of a late disbursement only within that same 180-day late disbursement period.

USA Funds now will allow exceptions to the 180-day time frame only under the following circumstances: 

• The school discovers that it returned funds for the wrong student.
• The school determines that it inadvertently sent duplicate refund data and funds.
• A disbursing agent discovers that it transmitted a school refund file (change transaction send file) twice, in error.