How Do We Reverse an Overpayment Reported Before the COVID-19 R2T4 Waiver Guidance?

KA-34872 Helpfulness Rating 252 page views

Contact NSLDS Customer Service for instructions. For a period of time, NSLDS is only accepting voicemail messages and email requests for customer service requests.

Please see AskRegs Knowledgebase Q&A, Are We Required To Report a Title IV Overpayment Due To a Coronavirus-Related Withdrawal?, which reads in part:

For any student who begins attendance in a payment period or period of enrollment in the covered period, and who withdraws from that period as a result of COVID-19, neither the school nor the student is required to return unearned Title IV funds. The student therefore does not owe a Title IV overpayment and, as noted in the May 15, 2020 Electronic Announcement, the institution "is not required to notify the student or the National Student Loan Data System (NSLDS) of the overpayment or refer any portion of the overpayment to the Department."

If the school has already returned an overpayment on behalf of a student who withdrew from a payment period or period of enrollment within the covered period as a result of COVID-19, the overpayment must be re-disbursed to the student and reversed in NSLDS. We are unsure how schools are to reverse the reported overpayment in NSLDS.

 

AskRegs Q&As represent NASFAA's understanding of regulatory and compliance issues. They are FOR INTERNAL USE ONLY. While NASFAA believes AskRegs Q&As are accurate and factual, they have not been reviewed or approved by the U.S. Department of Education (ED). If you should need written confirmation of AskRegs information for audit or program review purposes, please contact your ED School Participation Division. NASFAA shall not be liable for technical or editorial errors or omissions contained herein; nor for incidental or consequential damages resulting from the furnishing, performance, or use of this material.