Students may receive Title IV funds only to the extent they show financial need. Total resources, regardless of the source, generally must not exceed a Title IV recipient’s demonstrated need (i.e., the difference between cost of attendance and expected family contribution). Thus, the school may not overaward the student when packaging Title IV aid. Need for the Pell Grant Program is determined independently, and the student’s Pell Grant award is not reduced due to other resources. However, awards under the campus-based programs and, with certain exceptions, the Direct Loan Program, must be adjusted in accordance with specific regulations and procedures in order to avoid overpaying the student, even if the student receives additional unanticipated resources after packaging is completed.
Related terms: Cost of Attendance; Expected Family Contribution; Need Analysis; Packaging; Student Eligibility; Verification
See also Subtopics for more specific references.
See also Overaward tolerances