Introduction
An overpayment occurs when the student receives more aid than they were eligible to receive. One kind of overpayment, traditionally called an over award, results from changes in the student’s aid package; a second occurs when a student withdraws. This volume covers how a school should respond when a student withdraws.
Throughout the Federal Student Aid Handbook (FSA) we use “college,” “school,” and “institution” interchangeably unless a more specific use is given. Similarly, “student,” “applicant,” and “aid recipient” are synonyms. “Parents” in this volume refers to the parents of dependent students, and “you” refers to the primary audience of the Handbook: financial aid administrators at colleges. “We” indicates the U.S. Department of Education (the Department, ED), and “FSA funds” and “Title IV aid” are synonymous terms for the federal financial aid offered by the Department. We appreciate any comments that you have on the Application and Verification Guide (AVG), as well as all the volumes of the FSA Handbook. We revise the text based on questions and feedback from the financial aid community, so please reach out to us about how to improve the Handbook through the “Contact Customer Support” feature in our Partner Connect Help Center and clicking on “FSA Handbook” under the Topic section.
COVID-19 Guidance and Waivers
The Department of Education recognizes that the COVID-19 pandemic created many unique challenges for postsecondary institutions. The Department provided a variety of special guidance and regulatory flexibilities due to the President’s declaration of the COVID- 19 national emergency on March 13, 2020. In addition, Congress passed legislation offering relief from certain statutory requirements related to the Title IV, HEA programs. Although COVID-19 continues to affect the lives of many Americans, the COVID-19 national emergency ended on April 10, 2023, through enactment of H.J. Res. 7, Public Law No. 118-3. Additionally, the COVID-19 public health emergency ended on May 11, 2023. These actions will trigger the sunset of many waivers and flexibilities for the Federal student financial aid programs related to the COVID-19 pandemic. Relief for students who withdrew due to COVID-19, which included a waiver of the institution’s obligation to return funds under the Return of Title IV Funds (R2T4) requirements, reversal of Pell Grant lifetime eligibility/subsidized loan usage for aid received for the period of withdrawal, and cancellation of TEACH Grant and Direct Loan funds received for the period, concludes at the end of payment periods or periods of enrollment that include the end date of the COVID-19 public health emergency. Therefore, the waiver will conclude at the end of a payment period or period of enrollment that includes the date of May 11, 2023. Institutions may not use the Coronavirus Indicator for withdrawals from payment periods or periods of enrollment that begin after May 11. Additionally, institutions must complete reporting of the Coronavirus Indicator and amounts not returned under R2T4 requirements by the following deadlines for each award year in which a qualifying withdrawal occurs:
Award Year |
Coronavirus Indicator Deadline |
R2T4 Reporting Deadline |
2021-2022 |
9/29/23 |
9/29/23 |
2022-2023 |
9/29/24 |
9/29/24 |
2023-2024 |
9/30/24 |
9/30/24 |
The waiver of the requirement for students in term-based programs to resume training where they left off following a leave of absence (LOA) applies to any approved LOA granted due to COVID-19 that began on or prior to May 11, 2023. The waiver will not apply to LOAs that begin after that date. For other COVID-19 related guidance, including waivers and exemptions to Title IV rules, please see the following webpages:
-
The Department of Education’s COVID-19 Information and Resources for Schools and School Personnel: https://www.ed.gov/coronavirus/program-information
-
Office of Postsecondary Education COVID-19 Title IV FAQ: https://www2.ed.gov/about/offices/list/ope/covid19faq.html
Changes for 2023–2024
There were no major regulatory changes or updates to Volume 5 in the 2023-2024 award year Federal Student Aid Handbook; however, the terms “Room” and “Board” were revised to “Housing” and “Food" throughout the volume, to illustrate the changes to the Cost of Attendance components outlined in the GEN-22-15 Dear Colleague Letter issued on November 4, 2022. There have been some additional questions and answers posted to the Program Integrity - Return of Title IV Funds Question & Answer (Q&A) section, so please ensure you periodically check for new information and guidance.