Defaults or Overpayments
A student will be denied eligibility for financial aid if he/she is in default on any federal student loan or owes a refund on a federal grant program.
A student in default is defined as a student borrower who is 270 or more days past due in repaying a Federal student loan. Such a borrower is not eligible to receive additional Title IV federal student aid funds unless the borrower has made satisfactory arrangements with the holder of the loan to repay the loans.
An overpayment exists whenever a student receives aid that exceeds his or her eligibility for a Title IV federal student aid program. Overpayments can be caused by incorrect reporting of information on the FAFSA, miscalculating cost of attendance, miscalculation of the Estimated Family Contribution by a school, paying ineligible students, and paying aid in excess of grant or loan maximums. In general, a student is liable for any Title IV federal student aid fund overpayment made to him or her. A student who receives an overpayment of a Title IV program loan, or a Title IV program grant may reestablish eligibility for Title IV program assistance by repaying the excess amount, or by making arrangements satisfactory to the holder of the overpayment debt to pay the excess amount.