Teacher Education Assistance for College and Higher Education (TEACH) Grants. Through the College Cost Reduction and Access Act of 2007, Congress created the TEACH Grant Program that provides grants of up to $4,000 per year to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families. If you have been awarded a TEACH Grant, and then it is determined that all or a portion of your grant(s) has been over-awarded, the amount declared an overpayment will be assigned to the Department for collection.

You may restore your eligibility for Title IV Federal financial aid by entering into an acceptable repayment plan with the Department. As long as you make the payments as agreed the grant-originated debt will not affect your eligibility for further aid. However, if you fail to make the agreed-upon payments, your eligibility will be permanently lost until the debt is paid in full.

Grant overpayment debts are not eligible for either consolidation or rehabilitation.

Source: US Department of Education

1) The amount given to you was more than you were eligible to receive (this is called an over-award). This can happen if the school makes an error when calculating your eligibility for financial aid, or if an audit of your financial records reveals that some of the information you provided was incorrect (for example, your income was higher than what you reported on your application for financial aid).

2) You withdrew early from the program for which the grant was given to you.

Source: US Education Department