Inadvertent overpayments
Hello,
Recently there was a discussion at my college about inadvertent overpayments. One of my advisors thought that he had an inadvertent overpayment. The discussion started because the disbursement was posted after the LDA but before the DOD. He argued that because the disbursement was made after the LDA the funds had to go in the CHBD column of the R2T4. My thoughts were that we did not know the student had withdrawn until the DOD. We are an institution that takes attendance. Therefore, the aid should have been in the disbursed column. Who is right?
Cortni
Hi Cortni!
Because the funds were disbursed prior to the date of determination, they would be considered disbursed funds when doing the R2T4 calculation. Once you figure out the amount of aid that was earned, you then subtract Funds Disbursed - Funds Earned. The result will tell you if a return needs to be done on the disbursed funds. The schools obligation is determined first, then the students. So I guess the answer to your question, if I'm understanding this lesson correctly, is that it all depends on whether the amount of aid earned is greater than, or equal to, the amount of aid disbursed.
Sarah
