Every month, HESC’s “Question and Answer” Web feature includes an interesting question presented to the Office of Counsel and Regulatory Compliance staff.

This month’s winning question is:

How did the general provisions changes published on November 1, 2007 affect the way current-year Title IV funds can be used to pay a student’s minor prior-year charges?

Before July 1, 2008, an institution was allowed to use current-year Title IV funds to pay for minor prior-year charges of less than $100, or, with a student’s or parent’s authorization, more than $100, if it did not prevent the student from paying his or her current-year educational expenses.

As of July 1, 2008, the new rules allow an institution to use only up to $200 of Title IV funds to satisfy prior-year charges of tuition and fees, room or board, and, with the written permission from the student or parent, other educationally related charges.

Questions regarding this guidance should be directed to the Office of Counsel and Regulatory Compliance at 518- 473-3986, or toll-free at 1-866-431-HESC (1-866-431-4372); press 6, or, askpolicy@hesc.org