DO NOT ADJUST LOANS Return To Title IV-F/W

Title IV Refund Process

DO NOT ADJUST LOANS Return To Title IV-F/W

1. Go to RPATIVC and enter student ID and hit next block. Make sure the correct semester is listed under term code and the withdrawal date is correct. Click on OPTION then click on CALCULATE SAVE MODE. If the student only received loans do not adjust and make a note to let Felisia know

2. Check RPAAWRD to make sure the R2T4 students new award amount updates and the Award Maintenance screen fund is locked. If it did not update on RPAAWD then manually update the new eligibility amount on the Award Schedule then go to Award maintenance and lock the fund. (The new eligibility amount is on the RPATIVC screen listed under ‘Revised Award’)

3. Go to ROAIMMP and click on Authorize or Disburse Aid and make sure the correct semester is listed.

Once this is complete check RPAAWRD to make sure the correct amount appears.

4. Check RSIAREV to make sure that award adjustments are reflected 5. Go to RHACOMM and add comments

Overpayment Process

A Pell overpayment occurs any time the student receives a payment that’s greater than the amount for which the student is eligible. Most overpayments are due to one of the following:

Student error, such as failing to report the spouse’s income on the application, or failing to report attendance and financial aid received at a previous college/university.

 PCC error, for instance, when a student’s award is taken incorrectly from the Payment Schedule, or when Pasadena City College (PCC) pays a student who isn’t making satisfactory progress.

 Required recalculations, such as when a student never begins attending class or does not begin attending all of his or her classes, or withdraws from PCC after receiving a disbursement for living expenses. (See

“Recalculations,” earlier in this chapter, and Chapter 6 of the FSA Handbook: Institutional Eligibility and Participation [Volume 2].)

 •Optional payments, for instance, when PCC makes an interim disbursement to a student selected for verification, but the student never completes verification. No matter what the reason for the

overpayment, it must be repaid. If the overpayment is the result of a PCC error or an optional payment, PCC should repay the Federal Pell Grant account whether or not it succeeds in collecting the

overpayment from the student. Note that PCC can’t reduce a student’s Pell award from the current award year to eliminate a Pell overpayment from a prior year.

Liability for Overpayment Cite

34 CFR 690.79(a) — Recalculations and Overpayments previous award year. For example, if a student received an overpayment in 2014-2015, PCC can’t reduce any portion of the student’s 2014-2015 Pell award to eliminate the overpayment. Chapter 8 of the FSA Handbook: Student Eligibility (Volume 1) has a more detailed and comprehensive discussion of overpayments.

Reporting Overpayments COD

If PCC collects or repays an overpayment for the current award year, it reports the decrease in the student’s award to COD using its normal reporting. PCC can also use COD to report a decreased award after the general disbursement record submission deadline.

Overpayments due to PCC error or interim disbursement

PCC is liable for overpayments that result from its error, such as an incorrect award calculation or an award that was made in spite of conflicting information. PCC is also responsible for any interim aid disbursements that were made before verification was complete, if verification ultimately showed that the student was ineligible.

(See the Application and Verification Guide.) If the overpayment was the result of PCC’s error and we can’t eliminate the overpayment in the same award year, we repay the overpayment. The student then does not owe an overpayment (to USDE but to the institution) and may receive FSA funds. If the

overpayment is the result of an interim disbursement, PCC can also continue to pay FSA funds to the student if the student repays the overpayment in full or makes repayment arrangements that PCC deem satisfactory. If the student won’t repay the overpayment, PCC will repay the overpayment from PCC’s funds within 60 days following the student’s last day of enrollment or by the last day of the award year, whichever comes first.

Again, once PCC satisfies the overpayment, the student regains eligibility.

Overpayments due to student error

If a student’s error or failure to report information caused the overpayment, the student is responsible for repaying the overpayment. If the overpayment can’t be eliminated by adjusting a later disbursements in the award year, the student can’t receive additional FSA funds until he or she repays the overpayment in full or makes repayment arrangements that PCC finds to be satisfactory. If the student won’t agree to repay, PCC isn’t liable for the overpayment, but should make a reasonable effort to contact the student and collect the overpayment. In the case of an FSEOG overpayment, PCC should promptly attempt to recover the overpayment by sending a written notice to the student requesting payment in full. If the student is responsible for repaying the overpayment, PCC may, if it chooses, make the repayment for the student (that is, PCC can return to the FSA program accounts the amount overpaid to the student). When PCC makes such a repayment on the student’s behalf, the student is no longer considered to owe an overpayment. Instead, the student owes an institutional debt that PCC can collect according to its own procedures. Because the student doesn’t owe an overpayment, he is eligible for FSA funds as long as all other eligibility criteria are met.

Reporting overpayments to NSLDS

PCC should report overpayments or changes to previously submitted information to NSLDS within 30 days of the date we learn of the overpayment or change. If the grant overpayment is the result of the student’s

withdrawal and a return to Title IV calculation, PCC will contact the student within 30 days of the

determination. PCC will only report unresolved overpayments if they’re due to student error; don’t report overpayments that are a result of a PCC error. Instead, as discussed previously, we will use PCC funds to repay the overpayment.

PCC uses the online NSLDS screens to report overpayments, which means that PCC has Internet access to NSLDS. (Dear Partner Letter GEN-00-20 gives the most recent technical specifications.) For information on entering overpayment data, see chapter 3, section 4.2 in the NSLDS User Documentation. This publication is available on the IFAP website <http://ifap.ed.gov>. Once the overpayment is reported to NSLDS, the student’s future output documents will show that he or she has an overpayment (see “NSLDS Match”). The Financial Aid History section of the SAR and ISIR will have information on the overpayment, including whether the student has made repayment arrangements.

Overpayments from previous award years

If a student repays a Pell overpayment for a prior award year, PCC should deposit the funds in its institutional federal funds or Pell account and report the decrease in the student’s award to COD. The funds can then be used for current year disbursements.

Reporting and Referring Overpayments

PCC is required to report any unresolved overpayments to NSLDS within 30 days of learning of the overpayment. PCC will notify the Department’s Debt Collection Service (DCS) if it doesn’t establish a

satisfactory repayment arrangement with the student. PCC can choose to refer all Pell overpayments to the DCS or it can repay overpayments for its students and establish its own satisfactory repayment arrangement with the students. If PCC is unable to eliminate an overpayment that isn’t PCC’s fault, PCC will refer the student’s case to DCS for collection.

Treatment of Overpayments

An overpayment is created whenever the student receives FSA funds that exceed his or her eligibility.

Overawards are one cause of overpayments; overpayments can also be caused by misreported FAFSA

information, miscalculated costs or EFC, payments to an ineligible student, or payments in excess of grant or loan maximums.

If a student receives a Pell overpayment, usually because of misreporting on the FAFSA, he or she can continue to receive FSA funds if the overpayment can be eliminated by reducing the subsequent Pell payments for the same award year. If the overpayment is created by a combination of an accurate Pell award and aid from other programs, the other aid awards would be adjusted, not the Pell Grant.

A student who receives an overpayment through the FSEOG, LEAP, or Perkins Loan program can continue to receive FSA funds if the overpayment can be eliminated by adjusting subsequent financial aid payments (other than Pell) within the same award year. If additional resources (not to exceed $300) become available to the student after PCC has packaged his or her aid, PCC does not have to adjust the student’s campus-based aid awards. However, if the overpayment was the result of a PCC error—for instance, PCC was aware that the student had received an academic scholarship but neglected to count it in the student’s aid package, the $300 tolerance does not apply. PCC will treat the full amount as an overpayment, as described below.

Referring overpayment cases to DCS

If we have tried but haven’t succeeded in collecting a Pell or FSEOG that was not due to a PCC error, PCC will refer the overpayment to the Department’s Debt Collection Service (DCS). To be referred to DCS, the amount of a Pell overpayment must be at least $25 and the federal share of an FSEOG overpayment must be at least

$25. (See the Volume 3: Pell Grants and the Campus-Based Programs volumes for more information.) PCC will make this referral in addition to reporting the overpayment to NSLDS. If PCC chooses not to refer such overpayment cases to DCS, PCC is then liable for the overpayments and should repay the appropriate FSA program funds from its own funds. If the federal share of an FSEOG overpayment is less than $25, and PCC can’t collect from the student, PCC isn’t required to take further action. To refer a Pell or FSEOG

overpayment case to DCS, PCC should provide all information necessary for collection on the case, as described later in this chapter. In addition, when PCC refers the overpayment, PCC should update the overpayment information previously reported to NSLDS by changing the Source field from SCH to TRF.

Cost of Attendance (COA) – Student Budget

The Cost of Attendance refers to the average amount a full-time student enrolled in classes at PCC can expect to spend during the semester. It is different for students living independently or at home, or who are residents of California or from another state.

Included in COA are…

 The cost of attendance covers:

 Tuition and Fees

 Books and Supplies

 Room and Board

 Personal Expenses

 Transportation Note:

SEARS is used to establish amounts for books and supplies and personal expenses.

California Student Aid Commission annual budget release is used to determine PCC Student Budget Other expenses may adjust the COA on a case by case basis through professional Judgment.

 Tuition expenses at an elementary or secondary school, medical, dental, or nursing home expenses not covered by insurance.

 Unusually high child care or dependent care costs.

Professional Judgment and Dependency Overrides Professional Judgment HEA Sec. 479A(a)

Professional judgment cannot be used to waive general student eligibility requirements or to circumvent the intent of the law or regulations. An aid administrator may use PJ on a case-by-case basis only to adjust the student’s cost of attendance or the data used to calculate her EFC. This adjustment is valid only at the school making it. PCC will not accept other college professional judgment; the process will be re-determined. The reason for the adjustment must be documented (by a third party if possible) in the student’s file, and it must relate to the special circumstances that differentiate him (not to conditions that exist for a whole class of stu- dents). You must resolve any inconsistent or conflicting information shown on the output document before making any adjustments. An FAA’s decision regarding adjustments is final and cannot be appealed to the Department.

Special circumstances may include the following.

 Tuition expenses at an elementary or secondary school, medical, dental, or nursing home expenses not covered by insurance.

 Unusually high child care or dependent care costs.

 Recent unemployment of a family member or an independent student, a student or family member who is a dislocated worker (as defined in section 101 of the Workforce Investment Act of 1998).

 A change in housing status that results in an individual being homeless (as defined in section 103 of the McKinney-Vento Homeless Assistance Act).

 Other changes in a family’s income, a family’s assets, or a student’s status.

 Change a Dependent Student to Independent (Dependency Overrides).

 Statement and supporting documentation indicating an unusual circumstances are required.

Note: However, none of the conditions listed below, singly or in combination, qualify as unusual circumstances meriting a dependency override:

 Parents refuse to contribute to the student’s education.

 Parents are unwilling to provide information on the FAFSA or for verification.

 Parents do not claim the student as a dependent for income tax purposes.

 Student demonstrates total self-sufficiency.

The Petition for Change to Independent Status form is to be used for students who request a change from dependent to independent status. The decision to change the student from dependent to independent status will be made by the Financial Aid Advisor, in accordance with the authority described in the HEA.

Consortium Agreement

Pasadena City College (PCC) offers consortium agreements for students who are concurrently enrolled at PCC and other institutions. PCC will pay a student for all units enrolled within the eligible courses.

Purpose: To establish a process for students to receive student financial aid during a concurrent enrollment period between institutions.

Related Information

Consortium Agreements entered into between another eligible college/university will apply to all students’

financial aid, except Federal Work Study, as long as PCC is the primary school or the “award” institution. The

coursework taken at the secondary school must count toward a degree or certificate at PCC or a transfer course for the student’s degree. The secondary school must be accredited and eligible to participate in Federal Title IV aid.

The Consortium Agreement is used to process the student financial aid and is obtained at your award college. If a student is concurrently enrolled at PCC and other eligible institutions and wishes to receive his or her

financial aid from the “Primary” college, PCC will be the primary school on the Consortium Agreement. The student should complete the top portion of the form, including the name of the secondary school and the classes being taken at that institution, and take the Consortium Agreement to the secondary school to be completed, signed, and returned to the PCC Financial Aid office.

PCC as the Primary School

When the form is returned to the primary colleges Financial Aid Office signed by the secondary school(s) and also signed by PCC academic counseling staff, the form is given to a the financial aid staff for final review . It is the student’s responsibility to provide the final official transcript for the consortium classes to the Admissions and Records office. If the official transcript is not submitted, it will be assumed that zero units were completed. The units taken at the secondary school will be considered the same as PCC units for the purposes of determining financial aid Student academic progress eligibility and R2T4 calculations.

A Banner report will be ran to remind the students of the transcript requirement and a hold will be placed on their account until satisfied.

PCC as the Secondary (visiting) School

If PCC is the secondary school the financial aid staff will sign off on the form indicating the student is not receiving any title IV aid.

IV. Federal Pell and Campus Based Funds

Pasadena City College (PCC) participates in federal and state need based and non-need programs. The Award/Packaging guidelines are established to find the most favorable combination of financial aid packages from federal, state and institutional sources. In accordance with Pasadena Community College District policy 4410.10-5, these guidelines are established to provide equitable funding to meet the student’s financial need.

The general rule in packaging is that the student’s total financial aid and other Estimated Financial Contribution (EFC) must not exceed the student’s financial need (Cost of Attendance minus the EFC = Student’s Financial Need).

In keeping with the federal and state guidelines, it is the philosophy of Pasadena City College, Office of Financial Aid that no one has the responsibility of supporting the student except for the student’s parent(s).

Thus, a student who is living with relatives will be treated as an “Away from Home” student, will be given an away from home budget, and will be packaged accordingly. Students who apply for financial aid as “At Home”

and then move away from home must update their FAFSA to reflect “Away” status.

Federal and State Financial Aid Eligibility Requirements

To receive federal or state financial assistance, the Office Financial Aid must determine the student’s financial aid eligibility. Specific requirements for financial aid are:

1. A completed Free Application for Federal Student Aid (FAFSA).

2. Possession of a valid Institutional Student Information Record (ISIR) with an Estimated Family Contribution (EFC) determined by the Central Processing System (CPS).

3. Documented status as a citizen or eligible non-citizen.

4. Being enrolled as a regular student in an eligible program with the purpose of obtaining a degree, certificate or transfer.

5. Certification of a high school diploma, its equivalent or evidence of qualification from Ability-to-Benefit.

6. Maintaining federal financial aid Satisfactory Academic Progress requirements 7. Not in default on a federal student loan or owe repayment to a federal grant program.

8. Possession of a valid social security number

9. Evidence of registration with Selective Service or documentation of exclusion from requirement to register.

10. Not have borrowed in excess of federal loan limits.

11. Direct Loan certification requires good academic standing.

Expected Family Contribution

The expected family contribution used in awarding student financial aid is calculated by the central processor (Department of Education).

Reminder: It is permissible, under professional judgment, to change the student’s contribution to more accurately reflect the financial strength of the student (and the student’s parents). Such an adjustment may be used to either increase or decrease the student’s contribution. One way to do this is to use the student’s (and/or parent’s) projected year or projected school year income. This may be done if the projected income is less than or more than the base year income. It is also permissible to remove a source of income from the previous year that is not available for the academic year.

Neediest Students

Title IV regulations require that Federal Supplemental Educational Opportunity Grant (FSEOG) award to students with exceptional need, as determined by the lowest family contribution. PCC defines this as those students with a calculated EFC of zero.

Reminder: It is not permissible to use professional judgment to award FSEOG or Federal Perkins Loan to a student whose need amount is less than the cut off amount. A school would not be in compliance with the Higher Education Act, as amended, and with the FSEOG regulations were it to award FSEOGs on a priority

In document Pasadena City College. Office of Financial Aid Policy and Procedure Manual (Page 29-36)