ED has released Volume 4 of the 2013-2014 FSA Handbook, “Processing Aid and Managing FSA Funds”. Some of the new items contained in this year’s edition of Volume 4 are:
- A reminder that schools may not use Title IV funds to pay “overtime charges” for a student who fails to complete his or her academic program within the normal time frame;
- An additional reminder that although schools do not have to return Direct Loan proceeds if a student who received a Direct Loan disbursement begins attendance for the loan period, but does so on a less than half-time basis, the school must not make any subsequent disbursements of the loan, unless the student resumes enrollment on at least a half-time basis;
- A whole new chapter on “Reconciliation” in this year’s edition (which also happens to be included in the recently released new Blue Book).
Subsequent to the release of Volume 4, two additional volumes have also been made available, which are Volume 1 – “Student Eligibility” and Volume 6 – “The Campus-Based Programs”. Some of the items that have been expanded upon in Volume 1 are guidance on eligibility and enrollment status when retaking coursework and parent borrower eligibility for PLUS Loans. Volume 6 includes new information related to the Federal Perkins Loan assignment process as well as information about paying overtime to FWS students. Schools will find it helpful to become aware of the information contained in these new editions of the FSA Handbook.