Pell overpayment occurs when you are awarded a grant, your classes
are paid for, and you either drop out
of school or withdraw from classes.
this happens, you will need to pay the money back. The amount
may vary: each school will dictate its policy on withdrawal.
You are going to attend a community college and your
EFC is zero. You are awarded the maximum amount of Pell Grant
-- $2,025 -- for the fall semester. The Pell pays for $1,000
in tuition and books, and you get a refund check from the school
for the remainder of the Pell Grant, $1,025. You get your books
and supplies and even have some money left over. A month into
the semester, you decide that school is not for you and you
drop out. The school will send you an overpayment notice that
tells you that you were paid Pell Grant money and did not attend
class, and you owe them $2,025.
money has to be paid back to the school. You will not be able
to get financial aid at any school in the future if this is
not paid back.
school is required by law to provide you with their withdrawal
policy at some point during the registration process.