Overpayements and Overawards

Anyone know the difference?

“An overpayment occurs when the student receives more aid than he or she was eligible to receive. One kind of overpayment, traditionally called an overaward, results from changes in the student’s aid package.”

--FSA Handbook 2008-2009

Overpayments

“An overpayment exists whenever a student receives aid that exceeds his or her eligibility for a Title IV program.”

Overpayments

“An overaward is created when the student’s aid package exceeds the student’s need.”

Overaward

Within Need

Within Cost of Attendance Budget

Packaging

New resource, not originally packaged Adjustments to COA Budgets Family makes FAFSA corrections Verification corrections Payments in excess of program maximums Interim disbursements Student stages a “no-show”

How, then, does an overpayment occur?

…was conceived because of confusion about the treatment of the New York State Math and Science Scholarships

So, we will focus further discussion on overawards.

This session…

Program specific limitations

Resolving Overawards

Never adjusted to resolve an overaward

Federal Pell Grant

There is no threshold or tolerance May not exceed cost of attendance, when

combined with EFC and EFA Must be reduced or repaid

ACG and National SMART

$300 NEED Tolerance/Threshold

May be applied only AFTER aid has been packaged

Required to take steps to resolve to within tolerance

Campus-Based Programs

May not require a student to repay earned wages

May be required to reimburse FWS program dollars from institutional funds

Federal Work Study

Before fully disbursed, must adjust After fully disbursed, and NO CB aid in

package, no action required◦ However you may adjust if you wish

After fully disbursed, and CB aid in package, must adjust to within tolerance◦ Must be repaid before adjusting/canceling CB aid

Federal Stafford Loans

Remember the Best Interest of the Student Minimize the negative impact on both the

student and the institution If aid is NOT fully disbursed

◦ Increase COA budget◦ Must reduce anticipated loan disbursements

before reducing/canceling CB aid If aid is fully disbursed

◦ Increase COA budget◦ Cancel unused portions of FWS awards

Resolution Options

How did we handle them?

NYS Math and Science Scholarships

Questions?