An overaward occurs any time a student's disbursed financial aid (federal, institutional, and outside aid) and other resources exceeds the cost of attendance for the award period by more than an allowable tolerance.
Causes of an Overaward and/or Overpayment
There are several causes of an overaward:
- Student wages - the student earns more than the FWS award.
- Change in the enrollment status - the student withdraws or drops below the projected enrollment status.
- Additional resources - the student has resources greater than those used to calculate the award.
- Fraud - the student intentionally deceives or misrepresents information to obtain funds.
- Any other error which maybe discovered.
Eliminating an Overaward
Before reducing a student's aid package because of an overaward, the Financial Aid Analyst should always attempt to alleviate the situtation by reducing or eliminating the overaward. The following possible allowances should be checked.
- Increase budget using allowable expenses.
- Adjust undisbursed funds (all undisbursed financial aid funds must be withdrawn in the case of an overaward
Treatment of an Overaward
If eliminating the overaward is not possible the aid administrator must reduce the overaward using the following sequence:
- If an overaward occurs, the Financial Aid Administrator must cancel/return federal funds to eliminate the overaward.