By: Eric Johnson
Crisp air, ice-blue skies, and the changing colors of the leaves signal the transition to October. While most people associate October with Halloween and fall activities, it’s also when the most completed financial aid forms launch for the new academic year. Yes, everybody, we’ve made it to the 2026-27 FAFSA form launch! After a successful soft launch in September, the 2026-27 FAFSA form officially became available on October 1.
As high school students complete their college applications and place their finishing touches on their college essays, now is the time to consider when to complete the FAFSA form. Most colleges and universities have deadlines for receiving a student’s FAFSA form. There were minimal disruptions to the FAFSA form in the 2025-26 award cycle after a disastrous rollout in the 2024-25 award cycle. Students can confidently complete their FAFSA form on www.studentaid.gov.
A question first-time college students ponder is what makes them eligible for the FAFSA? And that’s a great question because money is often left untapped due to a misunderstanding of what qualifies a student for federal financial aid assistance. Federal Student Aid must follow statutory laws and regulations on what deems a student eligible for federal assistance. Generally, students must meet the following eligibility criteria to complete a FAFSA form and receive federal student aid assistance:
The results of your FAFSA form play a pivotal role in determining your eligibility for need-based aid such as grants, loans, and work-study. By completing the form accurately, you are taking a proactive step towards understanding and managing your financial aid package.
To qualify for a subsidized loan, the Financial Aid Office will use the SAI figure to determine the amount of financial need you have remaining in your cost of attendance budget. Remaining financial need also plays a crucial role in your eligibility for federal work study, a campus-based program that allows eligible students to earn wages for work performed.
A completed FAFSA is necessary before a financial aid office can consider your need-based assistance eligibility. Students are often surprised that they qualify for a need-based loan or work study. For instance, a need-based grant like a Pell Grant or a supplemental grant such as the Federal Supplemental Educational Opportunity Grant (FSEOG) award could be available. So, even if you don’t think there’s a possibility of receiving a need-based grant, untapping access to these other sources of need-based assistance can offer relief when preparing for the financing component of your education.
This requirement is generally straightforward, but there are a few things to remember. When a student completes a form, the FAFSA Processing System (FPS) checks the student’s personally identifiable information, such as date of birth and social security number, with federal databases to confirm a student’s citizenship status. If a match comes back unsuccessful, a student may not be eligible for federal student aid unless they provide a citizenship document confirming their U.S. citizenship status.
Eligible noncitizens, such as permanent residents, may not have accurate records with the Social Security Administration. In those cases, financial aid offices recommend that you have easy access to your green card so a financial aid administrator can decide on your eligible noncitizen status.
Students who cannot confirm their citizenship status are ineligible for federal assistance.
Students applying for federal aid must have a valid Social Security number, except for a few odd circumstances. Be careful to enter this number into your FAFSA form, as an invalid Social Security number will cause numerous rejections of your FAFSA record submission. High school students may need to ask their parents or legal guardians for this document. Students who have previously submitted an FAFSA form will have their Social Security number automatically filled in on the new award year FAFSA form.
Not all programs at a college or university qualify for federal student aid assistance. For instance, certificate programs at Goldey-Beacom College are ineligible for federal student aid funding. Typically, most schools can award federal student aid for associate’s, baccalaureate, graduate, postgraduate, and doctoral degree programs. Select certificate programs at other institutions may be eligible for federal aid funding. However, certificate programs have many more restrictions than regular degree programs.
While this point may not apply to first-time college students, it’s a crucial consideration for returning students. Maintaining satisfactory academic progress is not just a requirement for federal assistance, but also a reflection of your commitment to your education.
A significant change to the FAFSA form under the FAFSA Simplification Act was the requirement that students and their contributors’ consent and agree to have their federal tax information transferred directly into their FAFSA form. Failure to consent may result in a rejection of the FAFSA form. A student can input their federal tax information manually into the FAFSA form. However, this should only be done in exceptional circumstances, as it may result in increased scrutiny of your submitted FAFSA form by the FPS or a financial aid office. Increased scrutiny of the FAFSA form may result in verification of your FAFSA data elements, which can decrease the speedy processing times of your federal student aid awards.
Like other legal documents, falsely certifying the FAFSA form can result in severe penalties, such as the inability to receive federal student aid assistance at schools participating in the federal student aid programs. Carefully read all statements before signing and certifying the FAFSA form. If you have any questions regarding the terminology you are reading or need clarification, please get in touch with your school’s financial aid office or Federal Student Aid directly.
To meet this requirement, you’ll need one of the following: a high school diploma or state-recognized equivalent such as a GED certificate; a completed high school education in a state-approved home school setting; or an ability-to-benefit alternative. Students without one of these credentials may not receive federal student aid access. Financial aid administrators may request documentation during the verification process to substantiate a student’s claim that they’ve earned a high school diploma or other equivalent credential.
Although this is not an exhaustive list of the eligibility criteria for receiving federal student aid, it is the nucleus of the eligibility criteria necessary to submit a FAFSA form. Comprehending the various eligibility criteria components makes it easier to understand why you may or may not be eligible for federal student aid. When you doubt an eligibility criterion requirement, speak to a financial aid administrator at your institution or contact the Office of Federal Student Aid directly to learn more about the requirement.
By: Zoe Lockwood
Registration Week at Goldey-Beacom College is an essential time for students to secure their classes for the upcoming semester and ensure their financial and academic records are in order. To ensure a smooth registration process, students must follow several key steps. Here’s a guide to help you prepare for Registration Week:
Before registering for classes, it’s essential to verify your financial standing with the College.
If you see a balance due, it may impact your ability to register for classes, so don’t skip this step!
If you have a balance, make sure you’re enrolled in a payment plan for the upcoming term.
Being on a payment plan helps ensure you remain in good financial standing and can register without delays.
Not on a payment plan and unsure what to do? Don’t wait.
Final Tips:
By taking these steps ahead of time, you’ll be ready to register without stress and stay on track for graduation.
Business Office Registration Week Checklist
🔲 1. Log in to Campus Web
🔲 2. Review Your Account Balance
🔲 3. Enroll in a Payment Plan or Check if Payment Plan is Up to Date
OR
🔲 4. Resolve Any Financial Holds
🔲 5. Be Proactive
By: Mark McGuire
The FAFSA for 2026–2027 is simpler than in years past, but small details still matter. By following these key steps, you can avoid the most common mistakes we see the most and make sure your FAFSA application is completed correctly:
The FAFSA automatically pulls income data from the IRS, which means your 2024 tax return must be filed before you can submit. If your taxes aren’t complete yet, they’re already overdue—and your FAFSA won’t process correctly without them. If you are a dependent student, this applies to your parent as well.
Both the student and the parent need their own FSA ID to complete their respective sections of the FAFSA. Creating these IDs is often the most time-consuming part. Once they’re set up and verified, the rest of the application is fairly straightforward.
Each FSA ID requires a unique email and phone number. Students should use their own contact information – not their parent’s. If a student creates their FSA ID using their parent’s contact information, the parent will not be able to create an FSA ID. It is also important for a student to use their own contact information the prevent 2-step verification issues.
The FAFSA calls anyone who provides information on the form a “contributor.” This could be a parent, a stepparent, a spouse, or the student. Being a contributor means you are providing financial information to determine household financial need—it does not mean you are committing to pay for the student’s education.
The FAFSA requires contributors to be invited to complete their section. Errors occur most often when students invite their parents to their FAFSA. To prevent issues, have the parent start the FAFSA and have them invite the student instead. Make sure the contributor’s first and last name, date of birth, and social security number matches exactly what is displayed on their FSA account. Any discrepancy will prevent the invite from matching to the contributor’s account.
Submitting your section as a contributor doesn’t necessarily mean the FAFSA is finished. If you don’t receive a confirmation email that your FAFSA was processed, it’s likely still incomplete. The most common causes are a missing signature or a contributor who hasn’t finished their section. Always check your email to be sure, or login to your FSA account to determine what the holdup is.
Following these steps will help you avoid the most common snags and keep your financial aid on track.
Phishing attacks are surging worldwide, leaving more individuals vulnerable to the malicious intents of the scrupulous actors who conduct these vile activities. Even with the advent of secure account protocols, such as two-factor authentication and security questions, phishing attacks remain a constant scourge for individuals and organizations alike. According to the College’s Chief Information Officer, whom the Financial Aid Office recently interviewed, phishing attacks are growing more complex in the new age of generative artificial intelligence.
Peter Rysavvy, Chief Information Officer, notes how a hacker will attempt to access your personally identifiable information and credentials to certain services, like banking, to steal your identity. Students should be cognizant of their online activities, as these actors prey on those who momentarily let their guard down.
The Financial Aid Office recently spoke with Peter Rysavvy about phishing attacks and other cybersecurity trends he notices. An edited version of the conversation follows.
Financial Aid Office: What is phishing? Why is phishing a commonly used tool by hackers?
Peter Rysavvy: Phishing is someone trying to trick you into giving away personal information – like passwords or financial details – by pretending to be a trusted source, often through email or text messaging. Phishing usually involves scare tactics like making you think money was taken from your bank account or threatening the removal of your data if you don’t click on a link immediately. Hackers love phishing because it’s easy, cheap, and it works very often. Instead of breaking into systems, they just convince people to hand over their account credentials.
What are some of the biggest cybersecurity threats you are observing?
Phishing emails remain a top threat, but we’re also seeing attacks using stolen passwords, fake GBC login pages, and scams targeting financial aid, tax refunds, student assistance programs, or tuition payments. Ransomware – where hackers encrypt an organization’s data and demand payment – is another ongoing concern.
What should a student do if their account is compromised?
Act fast! Change all affected passwords immediately and enable multi-factor authentication for any of your accounts where you haven’t already. Next, report the incident to GBC OIT team as soon as possible so we can help secure your account and check for any suspicious activity.
What safeguards should a student employ to protect their account security?
Use strong, unique passwords for every account and turn on multi-factor authentication. Be cautious with links in emails or texts – when in doubt, don’t click. Take time to stop, think, and critically evaluate whether an email, text message, or link may look suspicious. Keep the operating system and apps on your personal devices updated. Beware of free item or money giveaways – if it sounds too good to be true, it probably is. And never share your account credentials with anyone, even if they claim to be from the GBC or your employer.
Are phishing trends becoming more complex in our new age of generative artificial intelligence?
Yes. AI makes phishing emails look much more convincing and personalized, which means spotting them is harder than ever. Always double-check the sender’s address and think twice before clicking on links or downloading attachments.
What’s the goal of a hacker? Your personally identifiable information? Or is it much more than that?
It’s often more than just your name or student ID. Hackers want access to user accounts and email mailboxes, financial data, and even your personal identity for fraud. Sometimes, they target organizational systems to steal confidential data or disrupt operations.
Are there any cybersecurity threats that students should be aware of during their studies?
Yes, many! These can include scholarship scams, fake job offers, fake IT warnings about possible issues with your account or email, fake giveaways from somebody pretending to be connected to GBC, notifications about financial transactions (shopping orders and deliveries, memberships, subscriptions, or other purchases) that you never made, and phishing emails pretending to be from financial aid, HR, or your class instructors. Also, be careful when connecting your personal devices to public Wi-Fi networks – that’s an easy way for attackers to intercept your data.
How do you not worry about these threats at night when you are asleep?
Technological data protection safeguards along with continuous staff education are only one part of the puzzle. Cybersecurity is a shared responsibility, though – students, faculty, and staff all need to stay alert and follow best cybersecurity practices together, which can make a big difference in keeping everybody’s accounts and data safe.
Thank you, Peter.
By: Gigi Gaul
The Financial Aid Office on campus is the perfect place to visit if you’re looking for ways to support your degree – whether it’s leveraging grants, work-study, or my favorite: scholarships. My family always reminded me that the more opportunities I could find to support my education financially, the more successful I’d be after completing it.
Like any other, I discovered the American Association of University Women (AAUW) Scholarship by figuring out what I loved about college (student clubs, classes, and community service) and then searching for an organization that would support me in doing those things and continuing my education.
I received this award as a senior, and the funding directly allowed me to pursue a master’s degree. I could renew the scholarship for two years, and some of the women involved with the AAUW became some of my biggest supporters in pursuing my education after receiving their scholarship.
This scholarship is available for females who are residents of New Castle County, Delaware, and are US citizens, pursuing a bachelor’s or master’s degree.
Here are some tips encouraging you to apply for the 2026-2027 school year.
Mark your calendar to check on the AAUW Application – one application can change everything! If you have questions about the scholarship, application process, or more, contact the AAUW Wilmington Chapter here: [email protected] | (302) 428-0939.
By Eric Johnson
To fully appreciate the financial aid awarding process, one would need a dictionary to review all the terms, definitions, and acronyms carelessly thrown around by financial aid professionals with little regard for their audience’s understanding of the complexities involved in financial aid. I am equally guilty of that trap, not realizing that my inability to break down a foreign term may cause more harm than good when chatting to a student or their family about a financial aid package.
Every year, when speaking to a group of students at New Student Orientation, I must answer the following question: What’s the difference between non-need and need-based aid? On the surface, I jokingly point out that the difference is subtle. To most students, though, it’s a valid question that deserves greater scrutiny and context.
Let’s break it down. There are two main types of financial aid: need-based and non-need-based. Need-based aid is for students who show they need financial help. Non-need-based aid is for students who don’t have to prove they need financial help.
Some institutions restrict institutional aid to students who display exceptional need. This need-based aid typically requires a completed FAFSA form or an institutional aid application. The institutional aid application may differ from the FAFSA, and schools can require additional supporting documentation to substantiate financial need. When reviewing a school’s institutional need-based aid form, critically review the documentation you must submit. This documentation can differ from the FAFSA verification process.
When a student completes a FAFSA form, the federal methodology used in the FAFSA form, which takes into account the student’s and their family’s income, assets, and other financial information, determines the student’s eligibility for a need-based grant such as a Pell Grant award. Some state grants, such as the Pennsylvania State Grant, are need-based financial aid awards that require a completed FAFSA to determine eligibility.
Need-based financial aid can also come in the form of federal student loans and federal work study. Subsidized loans are need-based loans that require students to demonstrate financial need. Federal Work Study is a campus-based program that allows students with financial needs to earn wages that defray educational expenses.
Renewing need-based aid usually means filling out a new FAFSA form or an institutional aid application. It’s important not to delay in submitting these forms, as it could affect your chances of getting aid in the new academic year. Remember, need-based aid depends on your financial situation at a specific time, so if your situation changes, you might not qualify for aid in the future.
Non-need-based aid differs slightly from need-based aid as it does not require a student to display financial need. However, there may be other criteria a student needs to meet to receive the funding. For example, merit scholarships require a student to display high aptitude in high school or a college setting to receive the funding. Athletic funding at the collegiate level requires a student to participate in team activities and games. Other criteria for non-need-based aid may include academic performance, community service, or leadership skills.
Other sources of non-need-based aid include unsubsidized loans that all students can receive with a completed FAFSA form. Unsubsidized loans do not require a student to demonstrate financial need. You can make up for the difference with an unsubsidized loan if you do not qualify for a full subsidized loan. Talking to your financial aid counselor can provide you with a better understanding of your financial aid package’s breakdown between subsidized and unsubsidized loans.
Understanding the difference between need-based and non-need-based aid is key to navigating the financial aid process. Need-based aid can change each year, so it’s important to stay on top of your financial situation. Non-need-based aid, on the other hand, is more likely to stay the same over time. Mastering these distinctions will make your search for financial aid resources more manageable and less daunting. And the best part? You don’t need a dictionary for these terms!
Rejection in real life can trigger a painful emotional event that is hard to overcome. Our brain has a hard time processing the shocking information. It almost feels like a real, tangible threat, stalking us daily. Emotional pain is not a pleasant experience, especially regarding finances.
A Parent PLUS Loan denial can be a significant setback for some students. These loans are often necessary when a student’s financial aid package does not cover the full cost of attendance. To be eligible for a Parent PLUS Loan, a student must complete a FAFSA, And the parent borrower must have a solid credit history. Adverse credit history, such as bankruptcy or significant delinquencies, or a default on federal student loan obligations can hinder a parent’s ability to receive funding for their child. When a parent receives a denial notice, it can feel like the end of the world for the student.
Despite the initial shock of a Parent PLUS Loan denial, there are ways to navigate this unfortunate circumstance. One empowering option is to have the other parent apply for the Parent PLUS Loan. For instance, if the mother received denial notice but the father has a solid credit history with no federal student loans, it may be possible for them to receive a PLUS Loan in their name.
Another option is for a close relative or a family friend to become an endorser for a PLUS Loan. Like a co-signer on a loan, the endorser takes the risk of assuming payments if the parent fails to fulfill their obligation. In addition, endorsers and the parent must complete additional counseling before receiving a PLUS Loan. Endorsing a Parent PLUS Loan is an enormous risk that requires all parties to understand their obligations.
If a Parent PLUS Loan is entirely out of the picture, there are a few other possibilities to consider. Students can receive an additional unsubsidized loan to offset their educational costs. Although this increased unsubsidized loan amount may not cover all the expenses as a Parent PLUS Loan would, it’s still a viable tool to use when funding is tight. The best thing about this option? Unsubsidized loans won’t count in the student’s aggregate loan limit, which is especially helpful when entering graduate school.
It’s crucial to seek guidance from a financial aid counselor to determine your additional unsubsidized loan amount. Generally, most students can receive approximately $4,000 in additional unsubsidized loan proceeds. However, this amount can differ, so discussing your loan amounts with an experienced financial aid administrator is essential.
Consider a private student loan if you still need funding to augment your financial aid package after a Parent PLUS Loan. Private student loans may be more willing to work with a borrower with an adverse credit history than the federal government’s Parent PLUS Loan. There is also the possibility that a student with a decent credit history can sign for a private student loan without a co-signer.
Suppose obtaining additional financial aid resources is too burdensome, or you have a manageable, minimal balance. In that case, your next best option may be a payment plan with the institution’s Business Office. Goldey-Beacom College offers interest-free payment plans that split your total balance owed into payments over an extended period. The Business Office offers two payment plan types: four monthly payments for the semester in question or an annual payment plan that creates eight monthly payments between the fall and spring semesters. A few other payment plan options are available, so don’t hesitate to chat with the Business Office.
While a Parent PLUS Loan denial may initially feel like the end of the world, it’s important to remember that it’s not. Understanding that you have many options can provide a sense of relief and reassurance, helping you overcome this short-term bump and continue your academic studies.
Over the summer, the federal government changed the aggregate loan limits for federal student loan borrowers. These changes will pose new challenges for federal student loan borrowers. Here’s what you need to know about the changes:
With the elimination of the Graduate PLUS Loan program, graduate students’ only source of federal student loan funding is from the unsubsidized loan program. The federal government retains the $20,500 annual borrowing cap for graduate students, so there is no change. However, graduate students can no longer receive PLUS Loan funding, which means $20,500 is their hard cap for federal student loans. This change will push more graduate students to the private student loan lenders. Graduate enrollment may also decline as access to funding dries up for more costly graduate degree programs.
The $100,000 aggregate loan limit is another change that may cause some graduate students to reconsider their educational studies. Perennial students may not be able to obtain the financing for future graduate degrees if one of them is more costly than another. Assuming a graduate student receives the full loan amount ($20,500) annually, this funding will only last for nearly five years before the student hits their aggregate loan limit for graduate studies.
With the elimination of the Graduate PLUS Loan program, the federal government needed to offer students additional room in their lifetime borrowing limit on all federal student loans. So naturally, the federal government approved legislation that moves the total federal student loan limit to $257,500, from a previous high of $138,500. This change benefits professional students who can no longer rely on the PLUS Loan program to finance their studies.
An interesting provision in the recent legislation was the language allowing institutions to impose their own loan limits for lower program-level degrees. For years, some schools have squawked about the need to restrict loan funding for lower-level programs with lower tuition costs than other programs. This provision may be beneficial in preventing excessive loan refunds for academic programs with lower career salaries. However, it’s important for students and parents to understand that this provision could also limit their access to federal student loans for certain programs, potentially requiring them to seek alternative funding sources.
The most significant change to the aggregate loan limits was the reduction in the amount a parent can borrow for their dependent student in the Parent PLUS Loan program. This reduction results in a hard cap of $20,000 annually for each dependent student for whom the parent takes a PLUS Loan. It also has a lifetime aggregate limit of $65,000 per dependent student, so parents can no longer borrow large amounts. Some parents may need to consider private loans to help finance their students’ education. This change may require parents to reassess their financial planning for their child’s education and consider alternative funding options.
The COVID-19 pandemic years of awarding federal student aid brought lax verification criteria for financial aid administrators. The reduction in verification of applicants allowed financial aid offices to focus more of their efforts on assisting students, especially with the rollout of the new FAFSA form in 2024. After a period of tranquility, the federal government is relaunching its focus on verifying the identity of students applying for federal student aid.
On June 6, 2025, an electronic announcement from the Office of Federal Student Aid outlined the rationale behind the sudden increase in verifying the identity of applicants for federal student aid. “Recent data from Federal Student Aid (FSA), States, and financial aid administrators (FAAs) at a wide range of institutions of higher education has made it clear that the rate of fraud through stolen identities has reached a level that imperils the federal student aid programs authorized under Title IV of the Higher Education Act (HEA),” the electronic announcement states.
The electronic announcement further explains the need to increase scrutiny of verifying the identity of federal student aid recipients, saying “this is especially acute for the Pell Grant program, which is already facing a budgetary shortfall and has been targeted by technologically advanced fraud rings.”
Most of the time, the federal government randomly selects students for verification. There are three types of verification for FAFSA applicants. The first one is known as a V1, which is a simple verification of certain financial assets reported on a student’s FAFSA form. The second verification form is V4, which focuses on verifying the identity of a student attempting to receive federal student aid. The final verification method, V5, comprises a mixture of both approaches detailed in V1 and V4.
If selected for V4 verification, a student must go to their institution’s Financial Aid Office to verify their identity. Typically, students will sign a document stating who they claim to be. Students also attest that their use of federal student aid funding will only go for educational purposes. Students must also submit proof of identification, such as a state-issued driver’s license.
Students who need to complete V4 verification but cannot make it to their school in person can visit a notary local to them. On the V4 verification form, there’s a section where a notary can notarize the document after verifying the student’s application. If a student pursues this option, they may need to pay for notarized services.
As spooky as this process can sound, it’s important to note that the Financial Aid Office is eager to assist you with this verification process. Don’t let a simple verification document prevent you from accessing federal student aid funding.
Forgot to complete your 2025-26 FAFSA? It happens. Even the best of us overlooks things. If you are still fretting about your account balance for the fall semester, there’s still time to complete a 2025-26 FAFSA on www.studentaid.gov.
One of the common misconceptions about the FAFSA form is that you cannot submit one after an academic year begins. This premise is simply false. You still have a chance to receive federal student aid funding, even if you may not receive institutional aid that requires a completed FAFSA by a specific date. So, there’s no need to worry. You’re not too late.
When a student completes a FAFSA, the Financial Aid Office will review the student’s FAFSA to determine their eligibility for federal student aid. This funding does not disappear even after the academic year begins. So, if you think you are eligible for a need-based grant, such as a Pell Grant award, or would like to see your federal student loan eligibility, now is the time to submit your 2025-26 FAFSA before the fall semester dwindles away.
There are a few things to remember when submitting the FAFSA this late in the cycle. First, the FAFSA applicant must get the ball moving sooner rather than later. Waiting too long in the semester can create additional headaches, such as delayed disbursements or a restriction on the amount of federal student aid the applicant can receive. Statutory limits apply to making a late payment to a student’s account, especially after the semester.
Second, clear communication between you and the Financial Aid Office is vital. By alerting the Financial Aid Office about your recently submitted FAFSA form, you can take ownership of getting your federal student aid funding on your account sooner. This way, you’re in control of the process.
Finally, the Financial Aid Office may not award you all your federal student aid. If you complete FAFSA after the end of the fall semester, you may not be able to receive a refund from your federal student loans. The College’s census data will also dictate your enrollment status and the financial aid you can receive. Chatting with a financial aid counselor can clear up any ambiguities regarding your financial aid package.
Spooky season is here, but don’t let this time of year prevent you from submitting the FAFSA. If you need assistance completing the current year FAFSA, please get in touch with the Financial Aid Office. They’re here to help and will be happy to assist you with that not-too-scary endeavor.
Over awarded. Those two words can be unsettling for students when they receive a message from the Financial Aid Office about reducing their financial aid package. However, it’s important to understand that the Financial Aid Office is simply fulfilling its duty by adhering to regulatory guidelines set by the Department of Education. This is not a punitive action, but a necessary step to ensure compliance.
Every institution that participates in the federal student aid programs must establish, each academic year, a cost of attendance budget. This budget is a powerful tool that depicts a student’s anticipated direct and indirect expenses for the academic year, helping students to plan and manage their finances effectively. Financial Aid Offices are responsible for preparing cost of attendance budgets for each division (e.g., undergraduate, graduate, and doctoral).
Strict federal student aid regulations stipulate that students cannot receive funding above their cost of attendance budget. So, if a student has a large loan that exceeds their cost of attendance budget, the Financial Aid Office must reduce the loan to avoid an over award. Too many awards can harm a College’s ability to comply with stringent regulations.
Over awards can also happen with need-based aid, especially with unsubsidized loans. Suppose a student receives additional scholarship funding from an external source. In that case, the Financial Aid Office must account for that scholarship funding as expected financial aid, which reduces the student’s financial need. Although it’s uncommon, it’s possible for a student to initially qualify for a subsidized loan at the start of the financial aid packaging process and then receive notification later in the financial aid packaging process that they no longer qualify for the subsidized loan. As ill-fated as it sounds, it’s all part of the Financial Aid Office’s role in meeting the regulations set forth by the Department of Education.
If you receive a notification about an over award, remember that you’re not alone. The Financial Aid Office is here to support you. Set up an appointment to discuss your financial aid package, why the over award happened, and your next steps. Avoiding an over-award helps students and their financial aid peers prevent audit findings. So, don’t agonize about an over-award notification. It’s not as frightening as it sounds.
Have a comment or thought for one of this month’s articles? Send an email to [email protected]. Emails must include the person’s name. Responses are subject to editing.
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