(a) Colleges shall request the disbursement of program loan proceeds through the corporation’s electronic funds transfer (EFT) process.

1. (1) Program loans may be disbursed in unequal disbursements based on the student’s program length and shall be delivered to the borrower or credited to the student’s account within three business days of receipt by the college of the proceeds of any program loan disbursement.
2. (2) A college shall, within 10 additional business days, deliver or credit the program loan funds to the student’s account or return the funds to the lender, through the corporation's EFT refund process.

(b)

(c) A borrower may receive a program loan in a given academic year to be applied by the college to unpaid higher education expenses charged to the student in the immediate preceding academic term of the prior academic year provided these charges have been included by the college as part of the enrolled student’s cost of attendance for that prior academic term and the college certifies that the program loan does not:

1. (1) exceed the unmet need for such prior term and is within the prescribed annual loan limits; or

2. (2) supplant or reimburse institutional aid.

   The availability of funding for prior term costs shall be determined by the corporation, and with respect to program loans that are otherwise eligible for purchase by a public benefit corporation shall be subject to approval by such public benefit corporation, on at least an annual basis with respect to program loans to be made for the applicable academic year, or portion thereof.