How to Cancel an Overpayment of a Pell Grant

Remain in good academic standing to maintain eligibility.

Pell Grants are federal aid programs for eligible college students. Unlike loans, legitimate grants don't need to be repaid. However, Pell Grant eligibility is based on the number of credits you are taking in any one semester. If for some reason you have to take a lighter load or drop a class at the last minute, you may get more Pell Grant money than you should. If you don't rectify an overpayment, you will not be eligible for future federal financial aid programs.

Things You'll Need

• Pell Grant information

Instructions

1. Contact your school financial aid representative as soon as you realize you have to take fewer classes than expected. Either call or go to the school site office to review your Pell eligibility and reassess your Pell Grant award. If payment has not yet been made, the financial aid officer may be able to reduce the amount of the grant to meet eligibility without concern about overpayment.

2. Arrange for a repayment program with the school financial aid office. Ideally, you haven't spent the money awarded to you and can simply return it to the school financial aid office. If money was used for nonrefundable school items, you will have to develop a payment program that works for both you and the school to prevent the funds from going into collection.

3. Authorize the school to take the overpayment from your anticipated federal tax return if you are unable to rectify the overpayment quicker. The financial aid representative will have the forms required to authorize this. As long as the overpayment is rectified prior to your next Pell Grant application and review, you will not lose eligibility for Pell, Stafford or other federal grant and loan programs.

References

• The Pell Grant: Pell Grant Overpayment
• FSA Collections: Repaying a Grant Overpayment
• Federal Student Aid: Pell Grants 2003-2004; Recalculations and Overpayments