Grant Overpayments

Overview

If the student does not resolve the overpayment, the system triggers a Review Grant Overpayment and Notify NSLDS and DRS task so an authorized user can report the overpayment to NSLDS and Debt Resolution Services (DRS).

Note: Amounts less than $50 are not considered a Grant Overpayment and will not be required to be returned.

Status Definitions

Status	Description
Not Reported:	Grant Overpayment exists on the student record, but the overpayment has not been reported to NSLDS or referred to DRS
Reported:	Grant Overpayment exists on the student record and the overpayment has been reported to NSLDS or referred to DRS
Resolved:	Grant Overpayment on the student record has been resolved and set to zero

What Student Financial Planning Does Automatically

Student Financial Planning automatically does the following things:

Determines if there is a grant overpayment

Student Financial Planning determines if a Grant Overpayment exists in Step 10 of the R2T4 process. Overpayments are tracked at an aggregate and fund specific level. If the Grant Overpayment is less than $50, it is not considered a Grant Overpayment.

If the student has a Credit Balance it is applied to the Grant Overpayment as long as the Grant Overpayment was created due to automation. If an existing Credit Balance is in a Pending status, the Grant Overpayment process is placed on hold until the status of the Credit Balance is no longer Pending.

The student remains eligible for the Title IV funds during the allowable time frame subsequent to the Grant Overpayment Student Notification sent date (based on configuration).

Sends student notification(s) when there is a grant overpayment

Student Financial Planning sends a notification to the student and institution to communicate a Grant Overpayment exists and the next steps required to resolve the overpayment. Notifications are sent no later than 30 days from the Date of Determination (DOD).

Note: Notifications are sent when an overpayment is identified, updated, or when a payment is applied.

Receives the payment information

When Student Financial Planning receives payment information for a Grant from an external system (i.e. Student Information System), the student's record is updated based on repayment priority.

Sends the return to lender message for grant overpayment returns

Student Financial Planning communicates with external systems by sending a Return to Lender message after a grant overpayment, payment is received to return funds to either the lender or DRS, (depending on the overpayment status of Reported or Not Reported). Grant overpayment payments are applied based on a defined repayment priority.

Triggers a task so a user can review the student's payment record before reporting an overpayment to NSLDS/DRS

If the student does not resolve an overpayment within the allowable time frame, Student Financial Planning triggers a Review Grant Overpayment and Notify NSLDS and DRS task. An authorized user can report the overpayment to NSLDS and Debt Resolution Services (DRS) if the student's payment record does not reflect that the overpayment has been resolved. Likewise, if a student has been reported to NSLDS and DRS, if the student makes a payment in an effort to resolve the overpayment, Student Financial Planning triggers a Report Grant Overpayment Resolution to NSLDS and DRS task. The user can then report to NSLDS and DRS that the student has resolved the Grant Overpayment.

Sends outbound message(s) to update NSLDS/DRS

When either the Review Grant Overpayment and Notify NSLDS and DRS task or the Report Grant Overpayment Resolution to NSLDS and DRS task is completed, the system sends an outbound message and letter to DRS so that the Department of Education is updated on the current state of the Grant Overpayment.

Configurable Attributes

Configure the outbound student notification

The Institution can configure the notification message that is utilized to inform students of a Grant Overpayment, the next steps to take and the time line to resolve the overpayment.

The notification should communicate the following (based on 2013-2014 regulations):

The student owes an overpayment of Title IV funds
The student’s eligibility for additional Title IV funds will end if the student fails to take positive action by the 45th day following the date the school sent notification to the student.
There are two positive actions a student can take to extend eligibility for Title IV funds beyond 45 days:
- Repay the overpayment in full to the institution
- Sign a repayment agreement with the Department of Education
If the student fails to take one of the preceding positive actions during the 45-day allowable period, the student’s overpayment will be reported immediately to NSLDS and referred to Debt Resolution Services for collection

The student can contact the school to discuss options

Navigation to the Student Financial Planning User Interface Functionality

To View the Grant Overpayment Screen

Student Financial Planning User Interface > Student Record > Student > Financial Information > Grant Overpayment

To View the Grant Overpayment from the R2T4 Screen

Student Financial Planning User Interface > Student Record > Student > Financial Information > R2T4 Information > Step 10