both	the	credit	or	clock	hours	and	the	weeks	of	instructional	time	in	a	payment	period	before	receiving	a	disbursement	of
Pell	Grant,	FSEOG,	TEACH	Grant	or	Direct	Loan	funds	for	the	next	payment	period.	For	the	Direct	Loan	Program	only,	this
same	requirement	applies	to	students	who	are	enrolled	in	programs	with	nonstandard	terms	that	are	not	substantially
equal	in	length.
Effect	of	Accelerated	Progression	on	Disbursement	Timing	in	a	Clock-Hour	or	Non-Term	Credit-Hour	Program
The	Pell	Grant	or	TEACH	Grant	amount	that	a	student	is	eligible	to	receive	for	a	payment	period	in	a	clock-hour	or	non-
term	credit-hour	program	is	based	on	the	number	of	hours	and	weeks	in	the	scheduled	payment	periods	for	the	program
that	are	established	at	the	beginning	of	the	program	based	on	the	program	length	(as	described	earlier	in	this	chapter).
These	scheduled	payment	periods	do	not	change,	regardless	of	a	student9s	rate	of	progression	through	a	clock-hour	or
non-term	credit-hour	program.	This	means	that	if	a	student	completes	additional	weeks	of	instructional	time	or	hours
while	completing	the	other	measure	of	a	payment	period,	the	actual	number	of	weeks	or	hours	that	the	student
completes	before	a	disbursement	can	be	made	for	the	next	payment	period	may	differ	from	the	number	of	weeks	or	hours
in	the	scheduled	payment	period	used	to	determine	the	student9s	grant	amount	for	the	payment	period.
Although	a	student9s	completion	of	additional	weeks	or	hours	in	a	payment	period	has	no	effect	on	the	scheduled
payment	periods	for	purposes	of	determining	Pell	Grant	and	TEACH	Grant	payment	amounts,	an	undergraduate	student
who	accelerates	in	a	clock-hour	or	non-term	credit-hour	program	may	have	reduced	Direct	Loan	eligibility	in	the	final
academic	year	of	a	program.	Specifically,	if	a	student	enrolled	in	a	program	that	is	greater	than	one	academic	year	in
length	completes	additional	clock	or	credit	hours	prior	to	the	final	academic	year	of	the	program,	this	may	result	in	a	final
period	of	study	that	contains	fewer	clock	or	credit	hours	than	the	number	of	hours	in	the	program9s	defined	academic
year.	In	this	circumstance,	the	Direct	Loan	annual	loan	limit	for	an	undergraduate	student	must	be	prorated	(reduced).
The	principles	described	above	are	illustrated	by	the	examples	in	
Appendix	A	at	the	end	of	this	chapter.	For	guidance	on
calculating	Pell	Grant	and	TEACH	Grant	awards	for	clock-hour	and	non-term	credit-hour	programs,	see	Volume	7.	For
information	on	Direct	Loan	annual	loan	limit	proration	and	annual	loan	limit	progression	in	clock-hour	and	non-term	credit-
hour	programs,	see	Volume	8,	Chapters	5	and	6.
If	your	school	is	unable	to	determine	when	a	student	has	successfully	completed	half	of	the	credit	or	clock	hours	in	a
program,	academic	year,	or	remainder	of	a	program,	the	student	is	considered	to	have	begun	the	second	payment	period
of	the	program,	academic	year,	or	remainder	of	a	program	at	the	later	of	the	date	(identified	by	your	school)	that	the
student	has	successfully	completed:
half	of	the	academic	coursework	in	the	program,	academic	year,	or	remainder	of	the	program;	or
half	of	the	number	of	weeks	of	instructional	time	in	the	program,	academic	year,	or	remainder	of	the	program.
Disbursement	Timing	in	Subscription-Based	Programs
For	the	first	two	subscription	periods	(terms)	that	a	student	attends	in	a	subscription-based	program,	there	is	no
requirement	for	the	student	to	have	completed	a	certain	amount	of	coursework	before	receiving	a	disbursement	of	
Title	IV
funds	(the	same	as	in	any	other	term-based	program	using	credit	hours).	However,	to	receive	a	disbursement	of	Title	IV
aid	for	each	subsequent	subscription	period	in	the	program,	the	student	must	have	completed	a	cumulative	number	of
credit	hours	equal	to	the	total	of	the	number	of	hours	for	which	the	student	was	enrolled	in	all	previously	attended
subscription	periods	in	the	program,	excluding	the	number	of	hours	for	which	the	student	was	enrolled	in	the	most
recently	attended	subscription	period.	For	more	detailed	guidance	on	the	disbursement	rules	for	subscription-based
programs,	including	examples,	refer	to	Appendix	B	at	the	end	of	this	chapter.
Multiple	Disbursements	Within	a	Payment	Period
The	regulations	governing	the	Title	IV	programs	generally	permit	schools	to	pay	Title	IV	funds	at	such	times	and	in	such
installments	within	each	payment	period	as	will	best	meet	students9	needs.	This	gives	schools	the	ability	to	apportion	the
payment	if	doing	so	will	be	in	the	best	interest	of	the	student.	For	example,	if	a	payment	period	is	particularly	long,	a
school	might	choose	to	pay	in	multiple	installments	to	the	extent	program	requirements	permit	to	ensure	that	a	student
will	have	funds	to	pay	rent	later	in	the	payment	period.	If	a	school	chooses	to	schedule	multiple	Direct	Loan
disbursements	within	a	single	payment	period,	the	disbursements	must	be	substantially	equal.	Note	also	that	if	the	loan
period	for	a	Direct	Loan	is	a	single	payment	period,	the	loan	must	be	disbursed	in	at	least	two	installments	unless	the
school	qualifies	for	an	exception	to	the	multiple	disbursement	requirement.	See	Volume	8,	Chapter	3	for	more