The	recalculation	requirement	described	above	applies	only	to	clock-hour	programs,	and	it	applies	regardless	of	the
length	of	the	program	or	remaining	portion	of	a	program.	For	example,	if	a	student	who	received	Pell	Grant	funds	for
enrollment	in	a	600	clock-hour	program	meets	the	graduation	requirements	after	completing	only	500	clock	hours,	the
student's	Pell	Grant	award	must	be	recalculated.
Overawards	and	Overpayments
A	Pell	Grant	overaward	exists	when	the	award	is	greater	than	the	amount	for	which	the	student	is	eligible.	An	overaward
only	becomes	an	overpayment	if	a	school	cannot	correct	the	overaward	before	all	funds	are	disbursed	to	the	student.
A	correctly	determined	Pell	Grant,	based	on	eligibility	criteria	described	in	Chapter	2,	is	never	adjusted	to	account	for
other	forms	of	aid.	Therefore,	if	a	student9s	aid	package	exceeds	his	or	her	need,	you	must	attempt	to	eliminate	the
overaward	by	reducing	other	
Title	IV	aid	or	other	aid	your	school	controls.	You	may	not	reduce	a	student9s	correctly
awarded	and	disbursed	Pell	Grant	to	address	overpayments	in	other	programs.
If	a	student	received	more	Pell	Grant	funds	than	they	were	eligible	for	because	their	eligibility	for	the	grant	decreased,
you	can	try	to	eliminate	the	overpayment	by	adjusting	later	disbursements	for	the	award	year.	Additionally,	a	Pell	Grant
awarded	to	an	ineligible	student	or	based	on	an	incorrect	enrollment	intensity	greater	than	that	for	which	the	student	is
enrolled	is	an	overaward.	See	Volume	4,	Chapter	3	for	additional	guidance	on	resolving	overawards.
Pell	Grant	Overawards
A	Pell	Grant	overaward	can	be	caused	by	a	school	making	an	error	in	determining	Pell	Grant	eligibility.	For	example,	the
school	may	use	the	wrong	SAI	or	fail	to	limit	the	award	by	the	student9s	COA.	A	Pell	Grant	overaward	can	also	result	if	the
student	enters	incorrect	data	on	the	FAFSA	form	and	the	SAI	derived	from	the	incorrect	data	is	lower	than	it	should	be	(for
more	detail	about	the	FAFSA	form	and	SAI	data,	see	the	
Application	and	Verification	Guide).	A	Pell	overaward	also	exists	if
a	student	scheduled	to	receive	a	Pell	Grant	fails	to	begin	classes	or	is	otherwise	determined	to	be	ineligible	for	Title	IV
Funds	(for	example,	having	exceeded	the	Pell	LEU).	Finally,	an	overaward	exists	whenever	a	student	is	scheduled	to
receive	or	is	receiving	a	Pell	Grant	for	attendance	at	two	or	more	schools	concurrently.	All	these	Pell	Grant	overawards
must	be	corrected.
This	is	not	an	exclusive	list	of	all	the	ways	in	which	a	Pell	Grant	may	be	overawarded.	In	addition	to	avoiding	these
mistakes,	schools	should	also	be	sure	to	submit	timely	Pell	actual	disbursement	records	to	COD,	according	to	the	Annual
Deadline	Date	Notice	as	published	in	the	Knowledge	Center.
$7,500	Pell	Grant	award	by	375	(the	number	of	clock	hours	in	each	payment	period	based	on	the	total	of	750
hours	that	the	student	completed),	then	dividing	the	result	by	900	(the	number	of	clock	hours	in	the	program's
academic	year).	This	results	in	two	recalculated	disbursements	of	$3,125	each,	for	a	total	award	of	$6,250.	The
school	reduces	the	original	first	and	second	disbursements	by	$625,	then	returns	the	total	difference	of	$1,250	to
the	Department.	Note	that	the	school	3	not	the	student	3	is	responsible	for	returning	the	excess	Pell	Grant	funds	in
this	situation.
Note:	It	is	possible	for	a	correctly	awarded	Pell	Grant	to	exceed	the	student9s	financial	need.	For	example,	a
student9s	SAI	may	exceed	their	COA,	but	the	student	may	still	qualify	for	a	Minimum	Pell	Grant,	based	on	that	set
of	eligibility	criteria.	Further,	a	student	may	be	eligible	for	a	Max	Pell	Grant	under	the	Special	Rule	regardless	of
their	SAI.	In	these	situations,	the	correctly	determined	Pell	Grant	is	not	considered	an	overaward,	but	the	student
is	not	eligible	for	any	other	need-based	Title	IV	aid.	See	Volume	3,	Chapter	3	for	additional	packaging	guidance.
Liability	For	and	Recovery	of	Pell	Grant	Overpaymen ts
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