Financial Aid Disbursement - "Government Hold"

Hello All,

I don’t know how to describe this because my school was unable to do so. I was only eligible this semester for an unsub loan. Disbursements began nearly a month ago and my school account has showed no activity. Finally I get a 17-18 verification requirement which I complete at the school. This requirement clears and there is still no activity on my account. I call the school fin aid dept. which tells me that everything on their end is clear but my account has been placed on a “Government hold pending verification”. I ask what this means, what governmental dept. this is and they say they don’t know but it is out of their hands and it usually clears in 7 days. Well it has been well past 7 days since the hold was placed and nothing. The school claims to have no idea what it’s about and says that they are not made aware. I’ve done a search and found nothing on this topic…Any idea what this is about? has anyone ever experienced this?

Are you male, over 18 and have you registered for Selective Service?

Yes to all.

jeez…i hate when things like this happens to students…hopefully it is related to that selective service thing…maybe it will clear up shortly…my fingers are crossed for u…

The same 2015 income was used for 2016/17 and 2017/18 FAFSA.

Did you receive a Pell grant last year that might have to be reduced or disallowed because of your EFC changing after verification?

It sounds to me like you spoke with someone who is only partially trained - a student worker, a technician or maybe an enrollment center staffer. I say this because what you were told makes zero sense!

The government does not hold your disbursement, so that theory is out. What concerns me is that you were told the school can’t do anything about it. I am sure there is SOMEONE at the school who can figure out what is going on and fix it. There are SO MANY things that come to my mind that it “could be.” An aid officer who knows what she/he is doing should review your account and figure it out.

Please go to your aid office and ask to speak with an aid officer who can review your account and figure out what is going on.

Probably the most likely theory, by the way, is that you school had to make some updates that need to go through the federal processor & be loaded back into your school’s computer system. That can take a few days or even a week. When it all clears, your school would automatically disburse the loan. But there are a number of other things it could be, including something that got missed in the process & might be overlooked if you don’t ask them to review your account.