If a student changes their citizenship status during the award year, is the school obligated to stop future disbursements for that award year?

When a student's citizenship status changes during the award year, the school is generally not obligated to stop future disbursements for that award year. It's important to recognize that the eligibility for federal financial aid is determined primarily by the student's status at the time of application and the financial aid award year.

If a student changes from one eligible status to another—for example, from a U.S. citizen to a non-citizen or vice versa—this change in status does not automatically trigger an obligation for the school to cease disbursements. Instead, schools typically review eligibility on a case-by-case basis, often requiring the student to update their information and potentially reevaluate their eligibility for future aid. Additionally, disbursements for awards already processed and disbursed remain unaffected unless there are specific policy stipulations or regulatory changes that require reevaluation based on the new citizenship status.

Overall, while a change in citizenship status may warrant a reassessment of the student's eligibility for subsequent awards, it does not create a blanket requirement for schools to halt future disbursements immediately within the same award year.