Program Integrity Final Rule

1. Program Integrity Final Rule Disbursement of Title IV Funds: Provisions for Books and Supplies

2. Disbursement: Provisions for Books and Supplies School must provide way for Pell-eligible students to obtain required books/supplies no later than 7th day of payment period if, 10 days prior to payment period: • School could disburse student’s funds, and • Disbursing those funds results in Title IV credit balance §668.164(i)

3. Disbursement: Provisions for Books and Supplies School must provide student with lesser of: • Credit balance • Amount student needs to purchase books and supplies §668.164(i)

4. Disbursement: Provisions for Books and Supplies To determine cost for required books and supplies, school may use either: • Actual costs • Books and supplies component for student’s COA for the payment period §668.164(i)

5. Disbursement: Provisions for Books and Supplies • School chooses its method for making these funds available to the student • School financial aid information and notifications to Title IV recipients must describe how and when these funds will be made available to eligible students • School must offer student a right to opt out § 668.164(i)

6. Disbursement: Provisions for Books and Supplies • If student uses method provided by school, student is considered to have authorized the use of Title IV funds—no separate authorization required for this purpose • As in current rules, school is liable for Pell Grand funds credited to student’s account or disbursed directly to student, if student does not begin attendance in payment period. §668.164(i)