I received my financial aid package for the 2015-2016 school year and I found an error. My school thought that my parents made twice as much as they did in the 2014-2015 school year due to an omission in the fact that a pension taken out was rolled over as opposed to being collected. So my counselor went back to look at this and agreed there was a problem so we were able to fix that. Later that day I received an email from my counselor that there was a financial aid overpayment from last year which she caught from us bringing up the major difference in financial aid from the previous year. We were only allowed a $1640 sub loan for the 14/15 school year but they ended up giving us 2720. Now my school wants us to pay the $1000 difference when it was their fault that they gave us too much money.
Has anyone else experienced anything similar to my situation? And also do you think this is something I could fight or will I end up paying for this? If my family had money to spare then this wouldnt be such a problem, but even with me working it is going to be difficult for us to come up with the money to pay the school back
If it was a Stafford loan, can they switch it from a subsidized loan to an unsubsidized loan? If it was a Perkins loan, you probably will have to pay it back now.
Sorry but you do usually have to give over payments back. Just like if you paid extra you would want that back. Ask for a payment plan or an extension of time if you can’t come up with it. And unusual financial circumstances, like the rollover have to be reported to them or else they won’t know about it.
This is a loan, it’s going to be “paid back”. It would be one thing if this were “free money” ( a grant ), but this is a loan. there should be some other answer, even if it’s just changing the loan to being an unsub one.
@kelsmom should chime in here. How far back can a school go to correct fed aid? At one time, it seemed that once June 30th (or some date) passed, there was no looking back and asking for money back. That date may have changed. This subject came up a few years ago, when a girl posting on CC provided info that clearly indicated that she and her sister (who had long graduated) should never have been receiving Pell Grants for the previous 8 years. At that time, I think it was kelsmom who indicated that there is some deadline where they can’t go back and demand the money back. I think then it was the end of the FAFSA year, which is often around June 30th (but I may have that wrong).
I don’t like it when schools do this. It’s one thing to do it during the current school year, soon after funds have been disbursed. But, to do this to young people, months later, when the mistake wasn’t fraud, and when likely they have no means to pay the money back is just cruel.
@ayebarr Was any of your aid last year from Work Study? If so, tell them to ask for THAT back… lol.
BTW…what would they do if they wrongly gave work study and the student worked and was paid? I doubt the school can demand that money back. If this student did work work study, then it could be argued that the “over payment” was that.
If it was refundrd to you, what did you do with the overpayment at the time?
The school is required to correct this once they catch it. They absolutely can switch it from sub to unsub, and you will not owe anything. If your counselor does not know how to do this, ask to speak with a manager. Someone at the school will have the knowledge that will allow you to make the dollar-for-dollar switch from sub to unsub.
And mom2collegekids makes an EXCELLENT point … if you had FWS in your award package that was never earned, you may be able to keep some of that sub loan. Again, it is important to find a finaid person who has the knowledge and experience to adjust your awards in the manner that will satisfy regulations but have the least negative impact on you.
@mom2collegekids and @kelsmom no I didnt receive work study and in the email she sent to me stating there was an overpayment, my counselor said that since the 14/15 school year is closed that we cannot switch it from sub to unsub and thank you I will try to speak to someone else at the school who could help me
@twoinanddone my counselor stated that since the school year is over, it is too late to switch it to an unsub loan
@madison85 we used the money to pay for my tuition since we thought it was part of my financial aid package
@kelsmom >>my counselor said that since the 14/15 school year is closed that we cannot switch it from sub to unsub >>>
Is this true?
Did you drop credits below full time last year?
I didn’t think of this, but … if you didn’t borrow an unsubsidized loan last year, they can’t switch sub to unsub. You have to actually have an unsub for the year in order to do that. And although I have been able to just switch sub to unsub (when an unsub loan existed for that year), it may not be a requirement that a school do so (it does present issues for the school in terms of reconciliation). And with the advent of new 150% subsidized loan regulations, it’s possible it might not be okay to do anymore (I now work in a grad school, so I am not as well-versed in those regulations as I would be if I still worked at an undergrad school - I left before those rules were put in place).
I think in this situation, the OP’s school’s policies are going to guide the outcome. I do think it’s good to ask the highest-level manager who reviews student awards to do so, just to make sure that what is being done must be done in the manner it is being done.