Refund of Federal Family Education Loans When the TOPS Scholarship Causes an Over Award
STUDENT FINANCIAL ASSISTANCE COMMISSION
TOPS BULLETIN NUMBER:
|July 1, 1999|
|DISTRIBUTION:||Louisiana Colleges and Universities, Louisiana Technical Colleges, Board of Regents, Department of Education, and Louisiana Officials|
|TOPIC:||Refund of Federal Family Education Loans When the TOPS Scholarship Causes an Over Award|
To assure that your Scholarship and Grant Policy and Procedure Manual remains current, please record this document on your TOPS Bulletin index and retain it with your manual.
Rules of the
Louisiana Student Financial Assistance Commission contained in Louisiana
Administrative Code, Title 28, Part IV, Chapter 19, Section 1903.B.3, is quoted
Rule §1903.B.3. In the event the student’s total aid, including vocational rehabilitation awards, exceeds the Cost of Attendance, any federal loan aid included in the total aid package shall be reduced, then institutional and other aid in accordance with institutional practice, then the TOPS award shall be reduced by the amount of any remaining over award.
Louisiana colleges, universities, and technical colleges whose graduates receive TOPS awards are reminded that, in the event a student’s total aid exceeds the Cost of Attendance computed for the school in compliance with Title IV of the Federal Higher Education Act and that aid includes a Federal Family Education Loan (FFEL), the student should be given the option of authorizing the school to supplant the FFEL with the TOPS Award (including the TOPS Teacher Award) and to remit the amount of the resulting FFEL over award directly to the lender to apply against the student’s outstanding loan balance. If the institution deems it necessary, the student may be required to complete the attached form, which would authorize the Financial Aid Officer to supplant the FFEL with the TOPS Award and remit the resulting FFEL over award directly to the student’s lender. Under no circumstances may a school remit the resulting FFEL over award directly to the student. If, after being advised of the advantages of permitting the TOPS to supplant a FFEL, the student chooses not to do so, then any portion of the over award comprised of TOPS must be refunded to the Office of Student Financial Assistance.
Once the student’s
total aid equals the Cost of Attendance, even though none or only a portion of
the TOPS award is included in that aid, the student shall be considered as
having received the award for the applicable enrollment period and the number of
years of eligibility remaining will be reduced by the applicable period.
A student whose TOPS award is partially or fully refunded because of an over award of aid remains eligible for the award as long as the continuation requirements of the award are met.
TOPS RECIPIENT’S FINANCIAL AID AUTHORIZATION FORM
(A copy of this Authorization Form shall be provided the student and the original retained by the institution)
TOPS Recipient’s Name (Printed)______________________________________________
TOPS Recipient’s Social Security Number
Name of the School Attended: _________________________________________________
I have been advised by the Financial Aid Officer of the school named above of the following:
1. That I am eligible to receive a TOPS Award and a Federal Family Education Loan (FFEL) and the total aid for which I am eligible exceeds my Cost of Attendance for this institution.
2. That by signing this form, I am authorizing the institution to apply my TOPS award in payment of my authorized Costs of Attendance and that any portion of a FFEL which is supplanted by my TOPS award and which exceeds my cost of attendance shall be remitted by the school directly to my lender to reduce the balance of my FFEL. Upon receipt of my TOPS award, the school shall remit $_______________to my lender to be applied against my outstanding loan balance.
3. That if I elect not to sign this form, then my TOPS award shall be reduced by the amount which exceeds my cost of attendance, up to the full amount of the award and, even though my award may be reduced, I will be considered as having received the award and the number of years, semesters or terms I am eligible to receive the award will be reduced accordingly.
STATEMENT: I hereby acknowledge that I understand the explanation provided above and I hereby authorize the named institution to replace any portion of my Federal Family Education Loan with my TOPS Award and to remit to my lender that amount of the loan which would otherwise exceed my Cost of Attendance.
Signature of TOPS Recipient
FFEL Lender: Name ___________________________________________________________
Signature of the School’s Aid Officer _____________________________Date:_______________