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Is there an overaward tolerance for Federal Stafford Loans?

April 26, 2017Federal Loans overaward Stafford tolerance

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Is there an overaward tolerance for Federal Stafford Loans?

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A. Generally, no. However, if the student’s financial aid package includes a Federal Stafford Loan and Federal Work-Study, there is a $300 overaward tolerance for the loan. The school is not required to adjust the student’s Federal Stafford Loan unless the overaward exceeds $300.If an overaward exceeds $300, the school must make an adjustment for the entire amount. Schools must not subtract the $300 tolerance from a total overaward that exceeds $300 to determine the amount of loan funds that must be reduced. Source: Federal Student Aid Handbook, Volume 1-Student Eligibility, p. 1-126.