Financial aid is very relevant for many American students pursuing higher education.
The Free Application for Federal Student Aid (FAFSA) is a vital tool in securing federal grants, loans, and work-study programs.
However, situations may arise where you receive more financial aid than you’re eligible for, leading to an overpayment.
This article addresses this concern and provides the resources to deal with such situations.
What is Loan Overpayment?
A loan overpayment occurs when you receive more federal student loan funds than your educational expenses and living costs warrant.
This can happen due to various reasons, such as:
- Changes in Enrollment: Withdrawing from classes, taking fewer credits, or transferring schools can affect your eligibility.
- Multiple Aid Sources: Receiving aid from multiple sources can lead to an overage if their combined total exceeds your needs.
- Financial Aid Errors: Data discrepancies or processing mistakes by your school or the Department of Education can result in overpayment.
What Should You Do if You Have an Overpayment?
If you are notified of an overpayment, it’s important to address it promptly.
Here’s what you should do:
- Contact your school’s financial aid office: Your school’s financial aid office is the first point of contact for any inquiries related to your award. They can explain the overpayment in detail, discuss repayment options, and answer any questions you may have.
- Review the overpayment notification: Carefully examine the notification from your school or the Department of Education. This document will explain the amount overpaid, the reason for the overpayment, and the deadline for repayment.
- Explore repayment options: Your school’s financial aid office can help you develop a repayment plan that fits your financial situation. You might be able to repay the entire amount at once, make installment payments, or qualify for a deferment or forgiveness program (depending on the specific circumstances).
It’s important to note that failing to address an overpayment can have serious consequences. These can include:
- Withholding future financial aid: You may be ineligible to receive future federal student aid until the overpayment is resolved.
- Negative impact on your credit score: The Department of Education may report the debt to credit bureaus, which could negatively affect your credit score.
- Collection efforts: If you don’t repay the overpayment, the Department of Education may take steps to collect the debt, such as wage garnishment or offsetting tax refunds.
What is the FAFSA Phone Number to Call for Overpayment?
There isn’t a dedicated FAFSA phone number specifically for overpayments.
However, you can reach the Federal Student Aid (FSA) Information Center for general inquiries related to financial aid, including overpayments.
The FSA Information Center phone number is 1-800-433-3232.
It’s important to note that reaching a representative by phone can sometimes be time-consuming due to high call volumes.
Here are some other ways to contact the Department of Education regarding your FAFSA overpayment:
- Submit a question electronically: You can submit a question electronically through the Federal Student Aid website https://studentaid.gov/. This can be a faster alternative to waiting on hold by phone.
- Live chat: The Federal Student Aid website also offers a live chat option where you can connect with a representative in real-time.
What is the Phone Number for FAFSA Account Recovery?
If you’re having trouble accessing your FAFSA account or need help resetting your password, the phone number you should use is the same as the one for general inquiries: 1-800-433-3232.
However, you can also recover your FAFSA account information directly through the Federal Student Aid website:
- Go to the Federal Student Aid website https://studentaid.gov/.
- Click on “My Account” in the top navigation bar.
- Select “Forgot My FSA ID” or “Forgot My Password.”
- Follow the on-screen instructions to recover your account information.