OVERAWARD CORR. PROCEDURES



I. NEED-BASED AID ONLY:

A. ANY UNDISBURSED FUNDS AVAILABLE:

Bring Overaward/Overmet (OMET) to ZERO by reducing undisbursed aid using the following priority:

• Federal Direct Stafford Loans (FDSL)

• Institutional Loans (ie. SAFE, Wallace, etc.)

• Perkins Loans (Perkins)

• Federal Work Study (FWS)

• I Douglas Turner Grant (IDTG)

• Federal Supplemental Educational Opportunity Grant (SEOG)

• SFA need-based scholarships

• Florida Student Assistance Grant (FSAG).

Repayment of paid aid may be necessary if aid reduction is insufficient. We will use the same priority as above to determine what aid should go into repayment.

1. If OMET is due to an increase in Expected Family Contribution (EFC) due to Verification, reduce the OMET to zero. There is no tolerance for this change. Check new eligibility for the Perkins, Pell Grant, SEOG and FSAG. If no longer eligible for Perkins or SEOG, cancel any undisbursed amount. Enter repayment for any ineligible aid that was already disbursed.

2. Exclude Short Term Loans (STL), Other Personnel Services (OPS), UF Interim Grants (UFIG) and Aid ID 0126-Graduate Assistantships when calculating need.

B. ALL FUNDS ARE DISBURSED:

1. If the OMET was caused by NON-INSTITUTIONAL aid or excess in FWS earnings:

a. If the award contains campus-based aid (CBA) place into repayment. At end of award year or if no longer enrolled, If $300 or less, OMET is OK.

b. If only awarded FDSL, non-need based institutional aid such as a tuition waiver or college awarded scholarship or a Pell any OMET is OK.

2. If OMET caused by INSTITUTIONAL aid:

a. Place into repay. At end of award year or if no longer enrolled apply a $300 tolerance.

b. OMETs will be reduced to zero. At end of award year or if no longer enrolled apply a $300 tolerance. If $300 or less, OMET is OK if we have prior knowledge that the student will not be returning instead of waiting until the end of the year. (Institutional aid OMET effective 2/96, $300 tolerance effective 96/97 - experimental site)

3. If OMET is due to misreported data (Verification), the OMET must be brought to zero. There is no tolerance, so repayment may be necessary.

4. Repay FSAG as a last resort.

5. Once all Federal aid is disbursed and we know the student will not be attending future terms during that award year, any Overmet of $300 or less, unrelated to Verification, will be considered Omet OK. (Ads 10/99)

6. Exclude STLs, OPS, UFIGs and 0126 Grad. Asst. when calculating need.

C. ALL FUNDS ARE DISBURSED Exception:

If a department or donor awards a scholarship to a student after all aid is disbursed for the term then they may qualify for an OMET OK exception.

1. Determine when the department made the decision to give the student the scholarship/waiver. (Documentation is required and should be scanned to the student’s file to show the date of decision.)

a. It is not when the student became aware of the award that can cause an exception. It is when the department became aware of or decided to award it to the student.  If it is a UF scholarship, the financial aid office must consider the awarded/decision date as the time we became aware of it.  .

2. Check when all of the student’s aid was disbursed.

3. If ALL of the student’s aid was disbursed before the decision date then it falls under an exception and can be removed from repayment for only the amount that the scholarship caused the budget to go over.

4. It would then be considered Overmet OK.

5. Put a note on Notes.

6. Send the documentation along with the repayment document to scanning.

II. NEED-BASED (Subsidized Loan (SUB) and campus-based aid) AND NON-NEED-BASED AID:

A. Calculate need (exclude STLs, OPS, UFIGs and 0126 Grad Asst). First, reduce or cancel unpaid Federal Direct Unsubsidized Loan (UNSUB) (then Federal Direct Parent/Grad PLUS Loans (PLUS)) if it exceeds the EFC/origination fee total. Then reduce or cancel unpaid need-based aid. If still exceeds need:

1. If there is unpaid UNSUB/PLUS, repay need-based aid and no tolerance allowed.

2. If the OMET is due to misreported data (Verification) the OMET must be brought to zero. There is no tolerance so repayment may be required.

3. If all aid is disbursed, place into repay. If $300 or less, OMET is OK.

B. The unpaid UNSUB (then PLUS) may need further reduction if total aid exceeds the budget after need is corrected.

C. Reduce or Repay FSAG as a last resort.

III. SUBSIDIZED LOAN (No Campus Based Aid (CBA)), NON-NEED-BASED AID & PELL:

A. Calculate need (exclude STLs, OPS, UFIGs and 0126 Grad Asst). First, reduce or cancel unpaid UNSUB (then PLUS) if it exceeds the EFC + Origination Fee total. (This EFC + Origination Fee total shows the actual non-need based eligibility.) Then reduce or cancel unpaid SUB loan. If still exceeds NEED and:

1. If OMET caused by NON-INSTITUTIONAL aid:

a. If there is unpaid UNSUB/PLUS, repay SUB and no tolerance allowed.

b. If all funds are paid out, any OMET is OK.

2. If OMET caused by INSTITUTIONAL aid:

a. If there is unpaid UNSUB/PLUS, repay SUB and no tolerance allowed.

b. If all aid is disbursed, place into repay.

c. If student not attending future terms that award year, any Overmet of $300 or less, unrelated to Verification, will be considered Omet OK. (Ads 10/99)

NOTE: If award consists of Institutional and Non-Institutional scholarships/aid, you must use the Institutional aid procedure for eliminating overmet.

B. The unpaid UNSUB (then PLUS) may need further reduction if total aid exceeds the budget after need is determined.

C. If a Private loan is also part of the award then the total aid can't exceed the budget for the loan award period. These loans also replace EFC.

IV. NON-NEED BASED AID ONLY (Unsub, PLUS, Private Loans, Scholarships)

A. If total aid (exclude STLs, OPS, UFIGs and 0126 Grad Asst) exceeds budget, reduce or cancel unpaid UNSUB (then PLUS). If still over budget and:

1. If OMET caused by NON-INSTITUTIONAL aid:

a. If all funds are paid out, any OMET is OK.

2. If OMET caused by INSTITUTIONAL aid:

a. If all funds are paid out, place into repay.

b. If student not attending future terms that award year, any Overmet of $300 or less, unrelated to Verification, will be considered Omet OK.

Note: If award consists of Institutional and Non-Institutional scholarships/aid, you must use the Institutional aid procedure for eliminating overmet.

B. If award only has a Private loan and no SFA need-based Scholarships it is not necessary to correct for any OMET.

NOTES:

1. UNEVEN AWARDS. When revising for OMET, we will correct an uneven award if it is a 2-term award and all aid has not been disbursed for the first term, so that the aid for each term will not exceed the budget and/or need. However, if only Federal Direct Student Loans (FDSL) are awarded it isn't necessary to balance an uneven award.

2. DEPENDENT STUDENTS Student Contribution (SC):

a. 1-term Awards:

• For students who are graduating Fall, or only awarded Fall aid and those that get Fall aid (CBA other than FWS) and do not continue to Spring term, you must use the full SC in the need formula to determine Overmet. However, if they also have Spring aid, but only Fall FDSL, and they aren't graduating Fall, you would use the 9 month need calculation to determine OMET.

• If awarded Spring or Summer aid only, and is dependent, we must use full SC unless we can verify enrollment for the prior terms.

b. SC Adjustments:

• If a dependent student is here Spring, and had attended UF in the Fall at least half time, without financial aid, or attended another school, we can reduce SC to 1/2 of the 9-month amount.

• If a dependent student is here Summer, and had attended UF Fall & Spring at least half time, without financial aid, or attended another school, we can reduce the SC to "0" and the Parental Contribution (PC) to the difference between the 9- and 12-month amounts.

3. FDSLs ONLY. In some instances where a student has FDSL ONLY, and was not OMET at the time of disbursement, these situations will be allowed to be OMET OK. Students whose Class and College (CCL) changes after disbursement, and is only awarded FDSLs, will not be required to repay due to that reason alone. Also, if student cancels a Spring loan after Fall loan is paid out or withdraws Fall term causing an OMET, no repay would be required.

4. LOAN REPAYMENT. When calculating repay for a loan paid out within the last 120 days, use the current payback rate (The current payback rate is an origination rate.) to calculate the repayment amount. You must also increase the calculated repay amount by $2.00 for SUB/UNSUB over $250 and PLUS over $38 to compensate for truncation adjustment. (The payback amounts are the overmet amounts minus the origination calculations based on the current percentages.)

5. OMET OK AND NON-NEED-BASED AID. When an OMET is OK, and the student has an Unsub or PLUS loan, do the following:

• If computed total is < or = to the budget, place the - need amount in the OMET field.

• If computed total is > the budget, place the computed total amount in the OMET field.

Also, ignore any cents in the computed total field. Rounding up is not necessary.

6. Even though we can reduce an unpaid FDSL to < the origination fee for the Spring term of a Fall/Spring loan, to correct an OMET, be sure that any omet amount is never = to the difference between the gross and net loan amounts. If so, the omet exceeds that terms loan, and it must be repaid in full along with some of the prior term loan.

7. If the student has no Federal aid in a prior term but is awarded FDSL for an upcoming term, the previously awarded aid will be considered in determining overall eligibility if OMET. If a student had Federal aid in a prior term and was not OMET, any non-Federal aid received in a succeeding term, which causes an overmet when no Federal aid is awarded, will be considered an OMET OK.

8. CURRENTLY IN REPAYMENT:

• If in repay, for OMET, when another term starts, and the student is at least 1/2 time and receives aid that creates a budget (scholarships, etc.), which eliminates the OMET, it is OK to remove from repay. If an OMET keeps a loan from processing for the next term, an advisor will determine if the student is actually attending, and if so, will run a loan and remove the student from repay.

• If in repay for a Sub loan and an Unsub is awarded for a succeeding term, the Unsub must be > the amount of the repay in order to compensate for the excess need aid already received. If not, the UNSUB must be cancelled and the student will remain in repay.

9. Always be sure the student is not OMET for the new award period before calculating the OMET for the entire period of enrollment (i.e., had Fall/Spring aid and now awarded Summer aid). Once all funds are paid out, and it is at the end of an academic year, and the student becomes Overmet, we will look at the full enrollment period calculation if repayment becomes necessary.

10. $300 OVERMETS. Our net-check system will pay out all monies if the OMET is $300 or less. Future unpaid money will be reduced to compensate in these instances. In the case of the final disbursement of the award period, be sure that these are not related to Verification before authorizing an OMET OK.

11. 1-TERM FDSL LOANS. For various reasons FDSLs will run for single terms. When this occurs you must look at the OMET on a term-by-term basis since the system calculates the loan eligibility using that terms' budget, EFC and aid awarded.

12. If a loan is awarded it must be the primary repay priority even though repaying a grant might allow less repayment. This decision to allow the student to repay the lesser amount should only be made by an Assistant Director or higher.

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