Over Awards
An over award is when the total financial aid funds received by the student exceed their calculated financial need and/or their total cost of attendance. To resolve an over award, the offer(s) may need to be reduced or canceled.
Types of Over Awards
There are two types of over awards and a student can have one or both types:
- Need-Based Overaward | When a student’s total need-based aid offers* exceed their calculated financial need.
- Cost of Attendance (COA) Overaward | When a student’s total financial aid offers exceed their estimated COA.
*Need-based types of aid include aid programs such as Federal Direct Subsidized Loans, Federal Work-Study, Federal Grants, and Scholarships.
Over Award Procedures
Per federal regulations, Dyersburg State Community College (DSCC) is required to resolve all over awards before additional financial aid can be released. Over awards are resolved by reducing and/or canceling the financial aid offered. Undisbursed Federal Direct Student Loans will be reduced before any reduction is made to previously disbursed awards.
Over awards typically occur when the Office of Financial Aid, at the time of releasing the financial aid offer, is not aware of additional financial assistance a student is receiving. Students are responsible for notifying the Office of Financial Aid as soon as they are aware of additional aid they will receive.
Over awards can also occur as a result of verification being completed or other changes being made to a student’s FAFSA and/or account status (i.e. residency, housing). Be sure to complete all necessary action items within the Financial Aid Requirements section of your MyDSCC as soon as possible to prevent the need for changes to be made to your aid offer(s).
Important Terms
SAI | The Student Aid Index (SAI) is an eligibility index number that the Office of Financial Aid uses to determine how much federal student aid you would receive if you attended the school. This number results from the information that you provide on your FAFSA form. This number is not a dollar amount of aid eligibility or what your family is expected to provide. A negative SAI indicates the student has a higher financial need. The Office of Financial Aid will determine your financial need by subtracting your SAI from the COA.
COA | The estimated Cost of Attendance (COA) represents the average expenses paid by students in various circumstances. The total financial aid offer cannot exceed the estimated COA.
Need-Based Financial Aid | Any “free money” and/or aid that takes a student’s SAI into consideration. Examples include grants, Federal Work-Study funds, Federal Direct Subsidized Loans, and certain merit-based scholarship and departmental stipends.
Non-Need-Based Financial Aid | Aid that does not take a student’s SAI into consideration and typically requires repayment. Examples include Federal Direct Unsubsidized Loans and Federal PLUS Loans.
Example of Need-Based Over Award
Estimated COA | $14,588
SAI | $2,000
Eligibility for Need-Based Aid | $14,588 – $2000 = $12,588
Total Need-Based Aid Offer | $13,588
Need-Based Over Award $13,588 – 12,588 = $1,000
This student has a need-based over award because the student’s need-based aid offer exceeds their eligibility for need-based aid by $1,000
Example of COA Over Award
Estimated COA | $14,588
Total Aid Offer | $15,588
COA Over Award $15,588 – $14,588 = $1,000
This student has a COA over award because the student’s total aid offer exceeds the estimated cost of attendance by $1,000.
Example of Need-Based and COA Over Award
Estimated COA | $14,588
SAI | $2,000
Eligibility for Need-Based Aid | $14,588 – $2000 = $12,588
Total Need-Based Aid Offer | $13,588
Need-Based Over Award $13,588 – 12,588 = $1,000
Estimated COA | $14,588
Total Aid Offer | $16,588
COA Over Award $16,588 – $14,588 = $2,000
This student has a need-based over award and a COA over award because the student’s need-based aid offer exceeds their eligibility for need-based aid by $1,000 and their total aid offer exceeds the estimated cost of attendance by $2,000.