Pell	Changes
If	FAFSA	data	changes,	recalculate	the	Pell	Grant	using	the	information	on	the	corrected	valid	FAFSA	Submission	Summary
or	ISIR.	You	can	only	pay	an	increased	Pell	Grant	if	you	have	that	output	document,	and	it	supports	an	increased	Pell
award.
If	the	FAFSA	data	change	results	in	reduced	Pell	Grant	eligibility	and	the	student	received	an	interim	disbursement,	adjust
subsequent	disbursements	as	necessary	to	eliminate	the	overpayment.	Failing	that,	the	student	should	reimburse	the	Pell
Grant	Program,	or,	if	they	do	not	return	the	overpayment,	your	school	must	reimburse	the	Pell	program	with	its	funds.	If
the	student	received	Pell	Grant	money	as	a	regular	disbursement,	they	are	responsible	for	repaying	the	overpayment.	See
Volume	4,	Chapter	3	of	the	FSA	Handbook	for	information	on	overpayments.
Campus-Based	and	Direct	Loan	Changes
If	the	correction	results	in	a	change	in	the	SAI	and	the	student	received	subsidized	Title	IV	aid	other	than	Pell	Grant	funds,
then	adjust	the	student's	aid	package	using	the	information	on	the	corrected	valid	FAFSA	Submission	Summary	or	ISIR.	If
there	was	an	interim	disbursement,	comply	with	the	relevant	rules	if	the	package	must	be	reduced.	If	there	was	a	regular
disbursement	and	the	package	must	be	reduced,	comply	with	FSEOG	overpayment	rules	or	with	the	rules	for	managing
excess	loan	proceeds	for	Direct	Subsidized	Loans.
Selection	After	Disbursement
A	student9s	application	might	be	selected	for	verification	after	corrections	are	submitted	and	the	student	has	been	paid
based	on	the	previous	unselected	FPS	transaction.	You	must	verify	their	application	before	making	further	disbursements.
If	verification	does	not	justify	aid	already	disbursed,	then	the	student	is	responsible	for	repaying	all	aid	for	which	they	are
not	eligible,	though	the	student	may	keep	any	Direct	Loan	money	they	received	and	FWS	wages	earned.	See	the	guidance
described	under	the	<Deadlines	and	Failure	to	Submit	Documentation=	section	later	in	this	chapter	for	what	happens	if	the
student	fails	to	complete	verification.
Disbursing	Unsubsidized	Aid
For	students	who	are	selected	for	Group	V1	and	are	eligible	for	both	subsidized	and	unsubsidized	aid,	a	school	may,	on	a
case-by-case	basis	and	with	proper	documentation,	disburse	Direct	Unsubsidized	and	PLUS	loans	prior	to	completing
verification	that	will	be	delayed.	To	avoid	exceeding	the	student9s	financial	need,	the	school	must	consider	the	subsidized
aid	they	will	receive	and	adjust	the	aid	amounts	after	verification	if	necessary.
If	the	student	never	completes	V1	verification,	the	student	may	keep	the	Direct	Unsubsidized	and	PLUS	loan	aid	that	was
disbursed.	However,	if	the	institution	determines	that	the	student	was	ineligible	when	they	received	aid,	see	the	relevant
34	CFR	668.59
Verification	Selection	After	Disbursement	Example
AVG,	Chapter	4,	Example	3:	A	student9s	application	isn9t	selected	for	verification	and	they	received	Pell	Grant
and	Direct	Loans	in	the	fall.	In	December,	the	student	submits	a	correction	on	their	FAFSA	Submission	Summary
that	causes	the	subsequent	transaction	to	be	selected	for	verification.	The	aid	administrator	at	the	student9s
school	tells	the	student	to	submit	verification	documents	to	receive	aid	for	the	spring	and	keep	the	Pell	funds	the
student	received	for	the	fall.	However,	the	student	doesn9t	submit	the	documents.	The	student	does	not	have	to
repay	the	Direct	Loan	they	received	in	the	fall,	but	the	student	does	have	to	return	the	Pell	Grant,	and	the	school
must	cancel	the	student9s	aid	package	for	the	spring.
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