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Over
Awards
An
over award occurs when a student receives more aid than the
amount for which he or she is eligible.
How
can an over award occur?
Overawards
occur because of incorrect or incomplete information was provided
on the aid application or was used to calculate a students eligibility
for any type of financial aid. Eligibility for aid is calculated
by using the following formula:
Cost
of Attendence - EFC - Aid already awarded = Need
Definitions
for above formula:
Cost
of Attendance:
A value used to calculate student eligibility. It takes the
following costs into consideration: tuition, fees, books, room
and board, transportation, and misc. costs.
EFC:
Expected Family Contribution, a value calculated by the US Department
of Education when a student files a Free Application for Federal
Student Aid (FAFSA).
Aid
Already Awarded: Used to calculate
eligibility for all need based aid sources other than Federal
Pell Grant. This part of the calculation considers sources of
funds that the student already has available to him or her which
helps fill their need.
Need:
Amount that the student may still receive in any type of aid.
For
more information on need, click here
Most
forms of aid are affected by the need calculation. If a student
receives more aid than allowed by the cost of attendance, then
an aid source may be reduce or eliminated.
Federal
Pell Grant or FSEOG Grant over awards where students will owe
money to the Department of Education
Below
is a list of situations in which a student may have received
an overpayment of a Federal Pell Grant or FSEOG Grant funds
and STC is not required to assume responsibility for collecting
the debt. These debts will be referred to the Department of
Education through the National Student Loan Data System (NSLDS)
if the student does not repay the Department of Education through
STC within established timeframes.
- Student
error, such as failing to report the spouse’s
income on the application, or failing to report attendance
and financial aid received at a previous school.
- When
a student fails to report additional resources to
the OFA and the OFA becomes aware of them and those
additional resources result in an over award and
the funds have already been released to the student
or used to pay for the student’s
tuition and fee costs.
- When
a Return of Title IV funds calculation is performed as a
result of a withdrawal or other circumstances which lead
to the calculation occur and the student owes an overpayment
Work
Study Over Awards
In
cases where a student who is a work study employee is over
awarded, the student’s FWS employment will end when
the over award is discovered.
Because
the student can’t be required to repay wages earned,(except
in cases of fraud) the amount of a FWS overaward may only
be reduced by reducing other forms of aid over which the
school has control.
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