<p>Hey Guys,
Here's my issue I'm transferring schools for the Spring semester, during this process I was selected for verification due to me adding a school on my fafsa. So I sent all of the needed tax information to both my new school and my current school. When my current school processed the information and sent it off to the federal processor they made an error and put that my mother was eligible to file a 1040a or 1040ez, but this particular tax season she wasn't eligible due to us selling our house. This caused my EFC to go to 0 and I received additional money, also by this happening I lost all my other grants because the new Pell Grant amount covered all my cost. My question is since it was the school's fault and they entered the wrong information that resulted in the overpayment am I still liable for the overpayment or is the school? Thanks</p>
<p>At this point in time, there is no overpayment because the current school entered the information in a way that they thought was correct. If in the future they are audited and the mistake is caught, they would be responsible for the error. That said, though, if they were to discover their error this year, they would have to correct it. In that case, your Pell grant would be reduced. Did you receive any more money than you had in the first place? If not, they can just correct their mistake and re-award the grants that were reduced. If so, do not spend the extra money until you talk to them and are assured they believe the verification is correct.</p>
<p>My suggestion is to point out the error to the school … not to the person who answers phones, but to someone who is in charge of verifications. Ask to speak to a manager about what you believe to be an error in your verification. Explain the situation. If the school insists it is okay, get that in writing (they may say it’s fine, although you know it isn’t). Email the manager after the discussion, stating that you would like confirmation that he/she has double-checked the verification and in in agreement. That way, if for some reason they try to remove the payment without awarding you institutional money to cover the balance, you can go to them with your email.</p>
<p>Also, make sure the new school doesn’t accidentally use the 0 EFC FAFSA to award your aid. Computers are great, but sometimes they allow another school’s change to be applied at their school … and when they catch the error, they will reduce your Pell based on their verified EFC.</p>
<p>I have a question … is there a possibility the EFC might be 0 even without the 1040A/EZ answer being yes? If AGI is <31,000 and either one parent is a dislocated worker or someone in your household received federal means-tested benefits within the past 24 months, it would be 0, anyway. </p>
<p>What is the AGI? How many in your family? How many in college?</p>
<p>Thanks for the response Kelsmom. They have already caught it because of course I try to do the honest thing and bring it to their attention when I received a check for an extra $1200 dollars after I filed the paperwork for the verification because I thought it may hurt me in the long run. This is when they reviewed over the information and said they did make a mistake when filling out the paperwork and they had to report it and they would get back with me. That’s how I found out I lost all of my other grants when they told me they were going to try to get that money back but wasn’t sure if they could. My main concern is that I’m going to have to pay back all of the money when they adjust my Pell Grant back to normal and not be able to get back my original grants and be left with a large debt due to their mistake. I’m wishing now I would of just kept my mouth shut.</p>
<p>My EFC has always been 0 but this year my mother had to itemize her taxes due to us selling our house and she got a $200 tax credit and their saying that’s preventing me from receiving a 0 EFC. This is what they caught the second time when I brought the mistake to their attention, they told me this caused my Pell Grant to go from $5500 to $600 for the year. AGI has been under $30,000 the entire time I’ve been enrolled in college. This why I’m scared there going to ask for all the money back even though it was their mistake. </p>
<p>It is just me and my mother and I’m the only one in college.</p>
<p>If they won’t give the grants back, go to the director to appeal. If necessary, go to theu university president. You just saved them potential audit fines for their sloppy verification!!! Do NOT allow them to make you repay a penny that you originally had … as long as your EFC did not go UP during verification, of course. I used to work in a financial aid office, running the Pell program, as a matter of fact. I would have made sure that the school covered the balance of grants removed, had someone made a mistake like the one that was made with your file.</p>
<p>Does your mom have a lot of assets? How much do YOU make? I can’t believe your EFC is that high. I think that they may have made another mistake. What did the NEW school get for an EFC? I really do not trust the first school to do the verification correctly …</p>
<p>Thanks for information, that relieves some stress I’ve had, hopefully I’ll find out about everything Monday but this has been a long weekend of worrying. I honestly don’t know what my true EFC number is because as of November 4th it was 03199* for my current school and after verification on November 18th for that school it was 00000* and for the new school it’s 04921*. So honestly it’s possible that my current school has messed up twice when processing my information. I’ve been reading every document regarding overpayment and I found this section that I’m hoping my case falls under. “Your school is liable for any amount of Pell Grant, Iraq and Afghanistan Service Grant, Perkins Loan overpayment that occurred because your school failed to follow the requirements in 34 CFR part 668, 673, 674, 676, 690 or 691 as applicable”. Thanks again for so being so helpful kelsmom</p>
<p>Kelsmom I sent you a PM with all the financial information</p>
<p>I PM’d you back. As I mentioned in the PM, your school needs to make this right for you. It sounds like they have some folks working there who need more training, but that fact should not cost you money (although it could result in fines for them if they don’t get their act together). Be polite, but be firm when you talk to them. Go to the top, if need be … you did NOTHING wrong. </p>
<p>I will warn you that if they find out that is should be the 4921 the new school got, you could owe them the difference in aid from the original 3199 and the new 4921. That unfortunately happens when verification results in a higher EFC. The thing to make sure of, though, is that you do not lose any money you would have had if they hadn’t messed up and incorrectly removed the state grant.</p>
<p>Keep me posted.</p>
<p>OMG ! This happened to me before also. Im still bitter about the whole situation up til this day. What can i do about it? Because I am not the only student who have to pay back pell grant for stupid college mistakes.</p>