Decrease Rule

Use this rule for overaward situations, either overages in need or COA. You can reduce the student's package based on one of these decrease methods:

• Bottom-Up Reduction. The Repackaging process reduces the student's package by the overaward amount beginning with the highest sequenced award. It processes through to the lowest sequenced award until the student is no longer in an overaward condition. The system might cancel or reduce multiple awards to eliminate the overaward condition.

• Item Type. The Repackaging process reduces the student's package based on the selected item type. If the item type is in the original package, the item type is reduced or canceled based on the overaward amount. If the item type is not in the original package, no reduction occurs.

• Reduce Awards by type/source. The Repackaging process reduces the student's package based on award type, award source, or both. For example, the type might be Loan and the source might be Federal, Institution, State, or Private. The student package is reduced starting with the lowest sequenced award matching the type and source combination through to the highest sequenced award until the student is no longer in an overaward condition. The system might cancel or reduce multiple awards to eliminate an overaward condition.

Note:

An overaward condition can exist even after an item type is canceled.

At the repackaging rule level, you can target your decrease population by specifying a need threshold for the reduction to occur. Need threshold can be based on Federal overaward, Federal overaward COA, institution overaward, or institution overaward COA. For example, if all students who are in an overaward condition should have a decrease applied to them, the threshold can be a Federal overaward amount that is greater than zero.

You can choose to reduce or cancel awards below their disbursed amounts by overriding the Disbursement Protection attribute established on the FA Item Type 2 page.