Is a student required to repay a grant overpayment that is less than $25?
No. If a student owes a Title IV grant overpayment as a result of a withdrawal, the student does not have to repay the grant overpayment if the original amount that the student is responsible for repaying (after the 50% reduction) is less than $25. A school should not report a student to NSLDS, refer him or her to FSA’s Student Management Collections (ED Collections), or attempt to collect on Title IV grant overpayments of less than $25.00. Note: This provision applies only when the original overpayment amount (Step 8, line 5 or 6) is less than $25. An overpayment for which the original amount was $25 or more that has a current balance of less than $25 may not be considered de minimis and therefore written off. This provision does not apply to funds that a school is required to return. Are there any special requirements for a school to follow if it has already referred an overpayment to ED Collections but then receives a payment from the student that will retire the student’s debt in f
Related Questions
- If a school chooses to pay a grant overpayment on behalf of the student who withdrew and the student then decides to not repay the school, can the debt be referred to ED?
- Is a student required to repay a grant overpayment that is less than $50?
- Is a student required to repay a grant overpayment that is less than $25?
