Disbursement of Financial Aid

How Financial Aid Is Disbursed

Overview of Disbursement: Disbursement refers to the process by which financial aid funds—federal, state, and scholarship are applied to a student's account to cover tuition, fees, and other eligible charges. Disbursements are processed after a student has met all eligibility requirements, including enrollment verification and passing the Pell Recalculation Date (PRD).

Direct Application to Student Accounts: Financial aid funds are first authorized to student accounts to cover institutional charges, including tuition and fees, as students register for courses.

How Financial Aid Is Applied and Refunded

Financial aid is applied to student accounts through an authorization and disbursement process. To be eligible to receive financial aid (federal, state, or scholarships), students must be enrolled in an eligible program that measures progress in credit hours within a standard term. Once eligibility requirements are met, the Office of Financial Aid disburses the funds to the Bursar’s Office. Any excess funds remaining after disbursement are refunded to students by the Bursar’s Office. Laredo College has not participated in Direct or Indirect Loan Programs since 2012.

The Office of Financial Aid processes disbursements after classes have commenced. A verification process is conducted to confirm that students are officially enrolled in classes and that their enrollment intensity is accurately reflected in the credit hours within a specific timeframe. On the Pell Recalculation Date (PRD), enrollment intensity is locked, determining the final number of credit hours for each student. This enrollment intensity is used to calculate Pell Grant awards, which are based on the exact number of credit hours enrolled as of the PRD.

Once the enrollment intensity is verified and locked, the financial aid disbursement is prepared for all eligible students. The funds are transferred to the Bursar’s Office, which begins processing refunds for any excess funds after institutional charges (tuition, fees, etc.) have been covered. The Office of Financial Aid continues to monitor any changes after disbursement and before the PRD, adjusting awards as necessary based on changes in student enrollment.

All disbursements comply with federal and institutional policies, including Pell Grant recalculations and the Return of Title IV Funds Policy. Students are informed of their disbursement status, including any changes resulting from adjustments in enrollment. Guidance is provided to students regarding how enrollment changes may impact their financial aid, and students are encouraged to consult the Office of Financial Aid with any questions or concerns.

Excess Funds & Refunds: If the total amount of financial aid exceeds institutional charges, the excess funds (credit balance) will be refunded to students. Refunds are processed by the Bursar’s Office and distributed through BankMobile BTMX refunds via direct deposit or, for minors, by paper check.
Disbursement Dates & Schedules: Disbursements are made on predetermined dates each semester, published in advance. The initial disbursement is processed after the census date for both 8-week and 16-week sessions, with subsequent disbursements occurring bi-weekly thereafter.

Student Authorizations

Federal law allows Laredo College to use federal financial aid funds to automatically cover institutional charges, such as tuition, fees, and other related educational expenses. Students must provide authorization for the use of federal funds for non-institutional charges, such as late fees and penalties, at the Bursar’s Office.

Automatic Authorization: Once a student’s financial aid file is complete and they meet the eligibility criteria, Laredo College authorizes financial aid funds upon registration to cover institutional charges. Students have the option to opt-out of this automatic authorization by submitting a written request to the Office of Financial Aid.
Authorization Process for Non-Institutional Charges: Students who wish to use federal funds to cover non-institutional charges must provide written authorization to the Bursar’s Office before disbursement. Students who decide to revoke authorization must contact the Bursar’s Office promptly.

Student Notifications

Laredo College is committed to ensuring that financial aid disbursement, including Title IV funds, is conducted in a timely, compliant, and transparent manner. The goal is to keep students informed throughout the disbursement process.

Authorization Confirmation: Financial aid is authorized upon student enrollment. Students receive an automatic email confirming that funds are authorized to cover institutional charges.
Refund Confirmation: Students will receive notification via their official LC email when financial aid has been refunded to their account. The email is issued by the Bursar’s Office.
Balance Notifications: If there is a remaining balance after financial aid has been applied, the Bursar’s Office will notify the student, including the amount due and the payment deadline.

Overview of Disbursement

Disbursement is the process through which federal, state, and scholarship funds are applied to your student account to cover tuition and fees after you meet eligibility requirements, including enrollment verification and the Pell Recalculation Date (PRD).

Pell Recalculation Date (PRD)

You have the power to choose your refund!

If you qualify for a Financial Aid refund or other payments while attending college at Laredo College, you'll receive them through BankMobile Disbursements, a technology provided by BM Technologies, Inc..

The dates for refunds can differ based on the refund option you choose.

Visit BankMobile for more information

Disbursements Dates

Financial Aid