Which statement is true about overpayments of campus-based aid?

Which statement is true about overpayments of campus-based aid?

• A. Before reducing the campus-based aid, you must determine if the student has more need than when originally awarded
• B. Because of the 300 tolerance, you are allowed to package up to 300 over calculated need
• C. FWS over-need example of 400 with no other reductions is allowed to be repaid
• D. No action is required

Answer: (A)

When campus-based aid is overpaid, the first step is to re-evaluate the student’s current need with up-to-date information. The key idea is to determine whether the student actually has more need now than when the original award was made. If there is more need than originally awarded, campus-based aid can be maintained or adjusted to meet that increased need (within program limits) rather than being automatically reduced. Only if there isn’t an increase in need should the school reduce the campus-based aid to offset the overpayment and address any resulting balance. This is why the statement about checking whether the student has more need before making reductions is the best choice. The other options aren’t accurate: there isn’t a fixed tolerance that allows packaging up to a set amount of overcalculated need; over-need involving Federal Work-Study isn’t simply a matter of repaying a fixed amount with no reductions; and ignoring the issue altogether (no action) isn’t compliant with proper aid administration.

When campus-based aid is overpaid, the first step is to re-evaluate the student’s current need with up-to-date information. The key idea is to determine whether the student actually has more need now than when the original award was made. If there is more need than originally awarded, campus-based aid can be maintained or adjusted to meet that increased need (within program limits) rather than being automatically reduced. Only if there isn’t an increase in need should the school reduce the campus-based aid to offset the overpayment and address any resulting balance.

This is why the statement about checking whether the student has more need before making reductions is the best choice. The other options aren’t accurate: there isn’t a fixed tolerance that allows packaging up to a set amount of overcalculated need; over-need involving Federal Work-Study isn’t simply a matter of repaying a fixed amount with no reductions; and ignoring the issue altogether (no action) isn’t compliant with proper aid administration.