Within how many days must an institution provide a written notification to a student, or parent in the case of a parent PLUS, requesting confirmation the borrower wishes to receive post-withdrawal disbursement of loan funds?

Within how many days must an institution provide a written notification to a student, or parent in the case of a parent PLUS, requesting confirmation the borrower wishes to receive post-withdrawal disbursement of loan funds?

• A. A 14 days
• B. B 30 days
• C. C 45 days
• D. D 60 days

Answer: (B)

Post-withdrawal disbursement requires timely getting explicit consent from the borrower (or parent for a PLUS loan) before funds are disbursed. The institution must send a written notice within 30 days of determining that a post-withdrawal disbursement will be offered, asking the borrower to confirm whether they want to receive the loan funds. This window gives the borrower a clear, sufficient opportunity to respond and make an informed choice about accepting the funds. Shorter timeframes don’t align with this requirement, while longer windows aren’t the standard practice.

Post-withdrawal disbursement requires timely getting explicit consent from the borrower (or parent for a PLUS loan) before funds are disbursed. The institution must send a written notice within 30 days of determining that a post-withdrawal disbursement will be offered, asking the borrower to confirm whether they want to receive the loan funds. This window gives the borrower a clear, sufficient opportunity to respond and make an informed choice about accepting the funds. Shorter timeframes don’t align with this requirement, while longer windows aren’t the standard practice.