Can I use financial aid to pay prior balances?
Yes, you can use your current or future term financial aid to pay for prior term or prior aid year balances through the Prior Year (PAY)/Prior Term (PAT) authorization process. This process follows federal, state, and institutional regulations.
- Title IV funds: Pell Grants, Federal Loans, SEOGs can cover prior term balances, up to $200 for a prior aid year.
- Non-eligible charges: Fees like bad check fees and non-credit course charges can't be paid with financial aid.
- State scholarships and institutional grants: Maryland state grants are term-specific and can't cover prior balances, but some institutional grants may apply.
Note: Prior year financial aid cannot be used to pay off balances already submitted to the State Central Collections Unit (SCCU).
To use current/future term financial aid for prior balances, students must:
- Be enrolled at least half-time for the current or upcoming term
- Submit all necessary financial aid documents for disbursement
- Have a financial aid disbursement equal to or greater than the total balance owed
See Use of Federal Student Aid Funds for more information.