The Program Integrity Q& A has been updated to provide information disbursing Unsubsidized Loans to certain students selected for verification and confirms that the applicant can keep the fund, even if they don’t complete verification.
VER-Q11. May an institution disburse unsubsidized Title IV student aid, i.e., Direct Unsubsidized Loans and PLUS Loans, prior to completing verification for a selected applicant who is eligible for both subsidized and unsubsidized Title IV student aid?
VER-A11. An institution may, on a case by case documented basis, disburse unsubsidized Title IV aid to only those applicants who are in Verification Tracking Group V1, V3 or V6 if the institution has determined that there will be a delay in the completion of verification. When determining the amount of the unsubsidized aid to be disbursed, the institution must ensure that the subsidized aid the applicant is estimated to receive is considered. After verification is completed, the institution must ensure that both the subsidized assistance and the unsubsidized assistance are adjusted, if necessary. An institution may not disburse unsubsidized Title IV student aid to applicants who are in Verification Tracking Group V4 or V5.
Even if the applicant does not complete verification, the applicant may retain all of the unsubsidized Title IV aid that was disbursed and remains eligible for any additional unsubsidized Title IV aid. [Sections 668.51(a)] [Guidance issued 10/10/2012; revised 6/7/2016 ]