Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

School Responsibility in the Reporting of Pell Grant Funds to RFMS When a Student Withdraws

PublicationDate: 10/10/2000
Summary: School Responsibility in the Reporting of Pell Grant Funds to RFMS When a Student Withdraws
Author: General Manager: SFA School Channel

Posted on October 10, 2000

TO: All Destination Points
FROM: Pell Operations
Schools Channel
RE: School Responsibility in the Reporting of Pell Grant Funds to RFMS When a Student Withdraws

We have received a number of inquiries concerning the responsibility of a school for the reporting of Pell Grant funds in the Recipient Financial Management System (RFMS) as a result of the new Return to Title IV requirements which are effective for all schools October 7, 2000.

Initially, a school should report to RFMS only the amount of unearned Pell Grant that is the responsibility of the school to return. (This is the amount in Step 6, Item 5 of the Return to TIV Funds Worksheet.)

If the school has already received an accepted disbursement in RFMS for the student, a negative disbursement should be submitted for the amount that is the school’s portion to return. This reduction in a student's Pell Grant disbursement will result in the school having "returned" its portion of the unearned grant because the school’s authorization in GAPS will be reduced by the negative disbursement.

A school that has chosen to make repayment arrangements with a student for the repayment of the student’s portion of the unearned Pell Grant, should not report to RFMS the amount of any Pell Grant overpayment that it has determined is the responsibility of the student until the student actually repays the funds to the school.

At the time the school receives payment from the withdrawn student, the school should submit a negative disbursement to RFMS and should do so each time the student pays funds to the school.

At the time the school receives the payment from the withdrawn student, the school must either reduce its cash drawdown from GAPS by the amount of the student repayment or, if the school is not drawing additional cash, within the timeframe permitted by cash management rules, it must refund the cash to the Department.

Information about reporting overpayments to NSLDS and referring overpayments to ED Collections when a student does not enter into a repayment arrangement with the school will be found in the 2000-01 SFA Handbook, Vol. 2, Chapter 6 Return of Title IV Funds which will be posted shortly to IFAP.