@2gjt - Do you have a source for this? According to the Department of Education site as well as FASFA paperwork, it states that it is up to the school receiving the funds to decide how to distribute the money -
“Generally, your grant or loan will cover a full academic year and your school will pay out your money in at least two payments called disbursements. In most cases, your school must pay you at least once per term (semester, trimester, or quarter). Schools that don’t use traditional terms such as semesters or quarters usually must pay you at least twice per academic year—for instance, at the beginning and midpoint of your academic year.”
It’s been reported that the school received the money, unless you know something we don’t?