Is a student required to repay a grant overpayment that is less than $50?
No. If a student owes a Title IV grant overpayment as a result of a withdrawal, the student must return the unearned grant funds for which he or she is responsible. When the amount of the grant funds disbursed less any amount that the school is responsible to repay is $50 or less, the student is not responsible for returning to any program to which the student owes $50.00 or less. A school should not report a student owing $50.00 or less to any Title IV grant program to NSLDS, nor refer him or her to FSA’s Student Management Collections (ED Collections), nor attempt to collect on Title IV grant overpayments of $50.00 or less. Note: This provision does not apply to funds that a school is required to return. Nor does this provision apply to a declining balance due once the balance is $50.00 or less. When a grant overpayment that was the responsibility of the student was above $50.00, the entire amount must be repaid.
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?
