Financial aid is essential for many college students. But what happens when you receive too much? While over-awards might sound like a great problem to have, it’s an issue that can complicate your academic situation.

Understanding how over-awards occur and the steps to resolve them will keep you on the track to success. Red Kite is here to help walk you through it.

What is an Over-award?

An over-award occurs when your total financial aid exceeds your school’s cost of attendance (COA). This can happen due to:

  • Changes in your COA (e.g., dropping to part-time enrollment).

  • Receiving additional scholarships or grants after your aid package is finalized.

  • Errors or miscalculations in the financial aid process.

Federal regulations prohibit students from receiving financial aid above their COA. Schools are required to address any over-award to ensure compliance.

How Over-awards Are Identified

Financial aid offices monitor your aid package to ensure it aligns with your COA. Over-awards are usually flagged when:

  • Additional scholarships or awards are reported to the school.

  • Adjustments are made to your enrollment status.

  • Audits or reviews uncover discrepancies in your aid package.

What Happens Next?

Once an over-award is identified, the school will take action to resolve it. Here’s what you can expect:

  1. Notification
    Your school’s financial aid office will notify you of the over-award. This notification will outline the steps needed to resolve the issue, as well as deadlines for any required actions.

  2. Adjustment of Aid
    To correct the over-award, your school may:

    • Reduce or cancel loans, grants, or work-study funds.

    • Request a refund of scholarships or grants from the awarding organization.

  3. Repayment Obligations
    If funds have already been disbursed to your account or refunded to you, you may be required to repay the excess amount. This could involve returning funds to the school or the federal government.

Steps to Prevent Over-awards

While over-awards can be resolved, it’s best to avoid them altogether. Here are some tips:

  • Communicate with your financial aid office: Notify them of any external scholarships or financial changes as soon as possible.

  • Monitor your aid package: Regularly check your financial aid account to ensure your aid aligns with your COA.

  • Be mindful of enrollment changes: Dropping classes or changing your enrollment status can affect your COA and aid eligibility.

What Should You Do If This Happens to You?

If you’re notified of an over-award, take these steps:

  1. Contact your financial aid office immediately to discuss your options.

  2. Work with the office to create a resolution plan, whether that’s adjusting future aid or arranging repayment.

While over-awards might seem overwhelming, they are manageable with the right approach. Staying informed and maintaining open communication with your financial aid office can help prevent and resolve these situations.

For more tips and tools to navigate your financial aid journey, explore Red Kite’s resources today. Together, we can make your path to education smoother and stress-free.

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