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OSFA Information Memorandum No. FY08-07
Distributed via Campus Announcements and Financial Aid Web Page
Memorandum
| TO: |
University Students, Faculty, and Staff |
| FROM: |
Carlos Clark, Ph.D.
Assistant Provost for Student Financial Aid |
| DATE: |
January 2, 2008 |
| RE: |
Financial Aid Award Revision Policy |
Once an award letter is sent to the student, there may be instances where changes to the original notification are warranted. An Aid Administrator may review a student's circumstances, make an adjustment to an award, and release a revised award letter. This revised award invalidates the original award notice.
Revision Initiated by the Financial Aid Office The Financial Aid Office (FAO) will automatically consider revision in a student's aid package when the following occurs:
- There is conflicting information in the file.
- There are changes resulting from verification.
- There is a change in availability of funds.
- There is an FAO staff member error.
The reverse side of the award letter acknowledges the right of the FAO to make a change to any award. Students are sent a revised award letter as soon as possible with an award message explaining the change. In the case of an office error, it is customary to contact the student personally or send a personalized letter.
Revisions Initiated by Request from Student Students may decline any portion of their award. If the student wants to add an award, the request will be forwarded to a Financial Aid Counselor.
It is the student's responsibility to notify your Financial Aid Counselor of changes in a student's resources (i.e. scholarships). If the student makes an appointment with a Financial Aid Counselor and reveals a change in circumstances which may affect the student's family contribution, the student should document the situation via a letter reiterating the conversation and including supportive documentation. If a change to the award is allowable, the Financial Aid Counselor will release a revised award letter.
Overawards
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 award FWS allocation.
- Change in the enrollment status - the student withdraws or drops below the projected enrollment status.
- Reduction in cost of attendance - the student changes budget categories.
- Additional resources - the student has resources greater than those used to calculate the award.
- Administrative error - the Financial Aid Administrator inadvertently makes an error.
- Fraud - the student intentionally deceives or misrepresents information to obtain funds.
Eliminating an Overaward
Before reducing a student's aid package because of an overaward, the Financial Aid Analyst should always attempt to alleviate the situation by reducing or eliminating the overaward. The following possible allowances should be checked.
- Increase budget using allowable expenses.
- Adjust EFC.
- 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:
- An overaward from an administrative error must first reduce or eliminate next semester's overpayment. The Financial Aid Counselor must then bill the student for any remaining amount.
- If an overaward occurs due to fraud, the financial aid office will consult the proper authorities and adhere to federal and institutional policy.
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