Federal/state overaward regulations and provisions apply to all students receiving federal/state need-based awards. The student's awards will be adjusted accordingly to eliminate any overaward.

Cuesta College will not reduce or cancel Pell Grant or Federal Supplemental Education Opportunity Grant (FSEOG) awards to eliminate an overaward situation.  In most cases, the student loans and/or federal work study funds will be reduced or cancelled.


What is an overaward of financial aid?

When the total of all aid received by the student exceeds the student's cost of attendance budget, awards in the package will be adjusted (cancelled or reduced) in order to eliminate the overaward. Federal Work-Study awards and loans will be reduced before any reduction is made to grant or scholarship awards.


Federal/State Regulatory Overaward Requirements

Federal and state need-based aid regulations (laws) stipulate that a student receiving federal or state need-based awards (see list below) cannot receive assistance (from any source) in excess of his/her gross financial need as determined by the analysis of the information submitted on the Free Application for Federal Student Aid (FAFSA).

Federal and state need-based awards include the following:

Normally this means your student loans and federal work study awards will be adjusted downward to eliminate the overaward situation.  This adjustment of the awards is required by federal/state law if any of the above federal/state need-based awards are included in the student's financial aid package.


If a financial aid overpayment is made as a result of a student’s error or failure to report requested information, the student is responsible for repaying the amount of the overpayment. The amount of the overpayment may be satisfied by reducing the student’s federal award(s) in a subsequent enrollment period during the same award year as the overpayment was created. If the overpayment amount cannot be satisfied by deducting the amount from a future disbursement, the student is responsible for making direct restitution.

As required by federal regulations, the Office of Financial Aid will report the overpayment to the Department of Education via the National Student Loan Data System (NSLDS) within 30 days from the date when the overpayment was created. Indication of an outstanding overpayment will be recorded on future output documents generated by the Department of Education, and may prevent the student from receiving certain types of financial aid funding.