Actual awards of student assistance for students enrolled in approved public or private institutions of higher education in this state, as defined in section 173.1102, shall be reduced to ensure that no student receiving state need-based financial assistance shall receive financial assistance that exceeds the student’s cost of attendance. Approved institutions shall comply with the provisions of this section and shall, upon request by the department of higher education and workforce development, provide financial information to the department to determine compliance with the requirements of this section. An approved institution that has accepted state need-based financial assistance in excess of the cost of attendance as described in this section shall refund the excess to the coordinating board for higher education. For purposes of this section, “financial assistance” shall not include any student loans or any awards of financial assistance based solely on a student’s academic performance.