My son was in his 3rd year attending a CA State University. We completed as always our FAFSA and his SAR was received by the College with his usual awards in place. The fall semester was awarded as the FA office received our tax extension form and AGI. I am self employed and due to a my income drop I was not required to file a return and we updated the FAFSA with the corrections and provided the IRS confirmation letter for non filing. Before all of that reached FA office, my son faces un-enrollment as they put his Spring award disbursement on hold. So we paid out of pocket and we’re told as soon as they reviewed and received the IRS letter directly from the IRS ( not a copy we were given) they would then provide a refund. We continually followed up and were told they had nothing yet. The IRS will not confirm delivery receipt but confirms processing it. I also did drop our original hard copy off as a safety net and then our followup a week before a deadline went ignored. Days after the deadline for them " receiving " the eligibility info passed we were told it was too late. I have found no help on campus and we are talking about $5000. Interestingly enough the 1098T shows theyvreported to IRS we received both dusbursememts. When I log into the NSIDS website it shows the full award granted and half still sitting as available in his account.
I have read on the Federal Register that late dusbursements can be provided. Curiously they did not revoke the Fall disbursement or ask for reimbursement. So how are we eligible to receive one semester and not the other. We are clearly eligible and it’s almost as if the FA office doesn’t want to own they made a mistake or misplaced the IRS letter. I understand the duty to confirm eligibility but isn’t their job to work for the student ability to attend with all avenues of financial options exhausted. Also, someone said the school receives all the grant money in advance and if not eligible they use it internally. If that is the case then they got paid twice. I assume this to be true since their accounting documented to the IRS the full award of both semesters.
This was for the 2016-2017 school year. I am sure all too late to get anything done but I would like to know more information if someone has the answers. Many thanks