Guidelines are provided to assist in the interpretation of the regulatory requirements regarding disbursement of funds to students under Title IV student aid programs. Attention is also directed to the higher education community's self-regulation initiatives regarding refund and repayment, as well as the Department of Education's regulations in this area. The section on disbursement covers the disbursement process and methods of disbursing financial aid, including disbursement of Pell Grants, Supplemental Educational Opportunity Grants, National Direct Student Loans, College Work-Study aid, and Guaranteed Student Loans. The following phases of the disbursement process are addressed: authorization of the payment of aid, assignment and application of aid to institutional charges, and payout of any remaining balances to the student. Disbursement methods that are covered include cash, payment voucher or check, or credit to a student's account. The next section covers policies and procedures relating to refunds and repayments required by changes in students' eligibility for aid. Appended are examples of refund policies that have been developed by various types of institutions, as well as case studies to provide self-learning applications. In addition, three case studies are provided that demonstrate the calculation of refunds and repayments at nonterm-based and clock-hour institutions. (SW)