An overaward is when the total financial aid funds received by the student exceed their calculated financial need and/or their total cost of attendance. To resolve an overaward, the offer(s) may need to be reduced or canceled.
Types of Overawards
There are two types of overawards and a student can have one or both types:
NEED-BASED OVERAWARD | When a student's total need-based aid offers* exceed their calculated financial need.
COST OF ATTENDANCE (COA) OVERAWARD | When a student's total financial aid offers exceed their estimated COA.
*Need-based types of aid include aid programs such as Federal Direct Subsidized Loans, federal-work study, grants and scholarships.
Overaward Procedures
Per Federal Regulations, the University of Maryland (UMD) is required to resolve all overawards before additional financial aid can be released. Overawards are resolved by reducing and/or canceling the financial aid offered. Undisbursed loans will be reduced before any reduction is made to previously disbursed awards.
Overawards typically occur when the Office of Student Financial Aid, at the time of releasing the financial aid offer, is not aware of additional financial assistance a student is receiving. Students are responsible for notifying our office as soon as they are aware of additional aid they will receive.
Overawards can also occur as a result of verification being completed or other changes being made to a student’s FAFSA and/or account status (i.e. residency, housing). Be sure to complete all necessary action items within the To-Do section of your FinAid Portal as soon as possible to prevent the need for changes to be made to your aid offer(s).
Important Terms
EFC | The Estimated Family Contribution (EFC) is an index number that is used to determine how much need-based financial aid a student is eligible to receive. The information reported on the FAFSA is used to calculate the EFC.
COA | The estimated Cost of Attendance (COA) represents the average expenses paid by students in various circumstances. The total financial aid offer cannot exceed the estimated COA.
Need-Based Financial Aid | Any "free money" and/or aid that takes a student's EFC into consideration. Examples include grants, federal work-study funds, Federal Direct Subsidized Loans and certain merit-based scholarship and departmental stipends.
Non-Need-Based Financial Aid | Aid that does not take a student's EFC into consideration and typically requires repayment. Examples include Federal Direct Unsubsidized Loans and Federal PLUS Loans.
Estimated COA | $27, 424
EFC | $2,000
Eligibility for Need-Based Aid | $27,424 - $2,000 = $25,424
Total Need-Based Aid Offer | $26,424
Need-Based Overaward | $26,424 - $25,424 = $1,000
This student has a Need-Based Overaward because the student's need-based aid offer exceeds their eligibility for need-based aid by $1,000.
Estimated COA | $27, 424
Total Aid Offer | $28,424
COA Overaward | $28,424 - $27,424 = $1,000
This student has a COA Overaward because the student's total aid offer exceeds the estimated cost of attendance by $1,000.
Estimated COA | $27, 424
EFC | $2,000
Eligibility for Need-Based Aid | $27,424 - $2,000 = $25,424
Total Need-Based Aid Offer | $26,424
Need-Based Overaward | $26,424 - $25,424 = $1,000
Estimated COA | $27,424
Total Aid Offer | $29,424
COA Overaward | $27,424 - $29,424 = $2,000
This student has a Need-Based Overaward and a COA Overaward because the student's need-based aid offer exceeds their eligibility for need-based aid by $1,000 and their total aid offer exceeds the estimated cost of attendance by $2,000.