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Overpayements and Overawards

Overpayements and Overawards. Anyone know the difference?. Overpayments . “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.”

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Overpayements and Overawards

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  1. Overpayements and Overawards

  2. Anyone know the difference?

  3. Overpayments “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

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

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

  6. Packaging • Within Need • Within Cost of Attendance Budget

  7. How, then, does an overpayment occur? • 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”

  8. This session… …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.

  9. Resolving Overawards Program specific limitations

  10. Federal Pell Grant • Never adjusted to resolve an overaward

  11. ACG and National SMART • There is no threshold or tolerance • May not exceed cost of attendance, when combined with EFC and EFA • Must be reduced or repaid

  12. Campus-Based Programs $300 NEED Tolerance/Threshold • May be applied only AFTER aid has been packaged • Required to take steps to resolve to within tolerance

  13. Federal Work Study • May not require a student to repay earned wages • May be required to reimburse FWS program dollars from institutional funds

  14. Federal Stafford Loans • 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

  15. Resolution Options • 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

  16. NYS Math and Science Scholarships How did we handle them?

  17. Questions?

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