Overaward Policy

Federal and state need-based aid regulations (laws) stipulate that a student receiving federal or state need-based awards cannot receive assistance (from any source) in excess of his/her gross financial need as determined by the analysis of the information submitted on the Free Application for Federal Student Aid (FAFSA).

Cost of Attendance (CAO)


Expected Family Contribution (EFC)
= Gross Financial Need
CAO is established by the aid office in compliance
with federal law.

EFC is determined by the analysis of the information
submitted on the FAFSA using a federal mandated
methodology referred to as 'FM'.

Federal and state need-based awards include the following:

  • Federal Pell Grant
  • Federal Supplement Educational Opportunity Grant (SEOG)
  • KY College Access Program Grant (CAP)
  • KY Teachers Scholarship
  • Need-Based Scholarship/Grant Programs from States Other than Kentucky
  • Federal Perkins Loan
  • Federal Work-Study
  • Federal Direct Subsidized Loan
  • Health Professions Loans (HPSL)

Adjustment of the awards in the student’s financial aid package to eliminate an ‘overaward’ is required by federal/state law if any of the above federal/state need-based awards are included in the student’s financial aid package.

In addition to the above federal/state need-based overaward requirements, the University of Kentucky applies a Cost of Attendance Overaward Policy for all students who receive assistance from any source that limits the total of all aid received by the student to the student’s cost of attendance budget. Awards in the package will be adjusted (cancelled or reduced) until the cost of attendance overaward has been eliminated.

All scholarship and grant awards in the student’s financial aid package from any source (federal,state, institutional and private) will be included in the calculation to determine if the student’s total awards exceed the cost of attendance. However, any required adjustments will be made from the awards listed below in the order indicated. (Awards from private sources or from UK colleges or departments not listed below will not be reduced or cancelled.)

  • Federal Work Study
  • Alternative (Private) Loan
  • PLUS Loan
  • Grad PLUS Loan
  • Unsubsidized Federal Direct Loan
  • Subsidized Federal Direct Loan
  • Health Professions Loan
  • Federal Perkins Loan
  • Vocational Rehabilitation Awards
  • Need-Based Scholarships awarded by the Financial Aid Office
  • Diversity Scholarships e.g. William C. Parker Scholarship
  • Academic Scholarship Office Scholarships (Includes all ASO scholarships including Singletary, Patterson, Governor’s Scholars, ROTC Housing Scholarships)
  • Legacy Scholarships
  • Robinson Scholars Program Scholarships
  • UK Employee Education Program (EEP) / UK Family Education Program (FEP)
  • Federal Teach Grant
  • KY Teachers Scholarship
  • Federal Supplemental Educational Opportunity Grant (SEOG)
  • KY College Access Program (CAP) Grant
  • The amount of the Federal Pell Grant and the Kentucky Educational Excellence Scholarship (KEES) is never reduced.
  • The Robinson Scholarship award is reduced by the amount of Pell Grant and CAP Grant funds received.
  • Athletic scholarship adjustments are not made for a student with a full grant-in-aid athletic scholarship who is alsoreceiving a Federal Pell Grant -- SEC/NCAA rules will take precedence.