Volume 1 Student Eligibility Table Of Contents

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Volume 1 Student EligibilityTable of ContentsIntroduction.1Chapter 1: School-Determined Requirements.5REGULAR STUDENT IN AN ELIGIBLE PROGRAM. 5Remedial coursework, Preparatory coursework, Teacher certification coursework,Students with intellectual disabilitiesELEMENTARY OR SECONDARY ENROLLMENT. 8ACADEMIC QUALIFICATIONS . 8Checking the validity of a high school diploma, Foreign high school diplomas, Recognized equivalentsof a high school diploma, Home schooling, Ability-to-Benefit (ATB) alternatives & eligible careerpathway programsSATISFACTORY ACADEMIC PROGRESS (SAP). 15Grades and pace of completion; Financial aid warning; Appeals, financial aid probation,and academic plans; Reestablishing aid eligibilityENROLLMENT STATUS. 19STUDENTS CONVICTED OF POSSESSION OR SALE OF DRUGS. 21Standards for a qualified drug rehabilitation programINCARCERATED STUDENTS. 23CONFLICTING INFORMATION. 23CHANGE IN ELIGIBILITY STATUS. 24Gaining eligibility, Losing eligibilityELIGIBILITY REQUIREMENTS FOR SPECIFIC EDUCATIONAL PROGRAMS. 26Correspondence courses, Students studying abroad, Distance education coursesChapter 2: U.S. Citizenship & Eligible Noncitizens. 29ELIGIBLE CATEGORIES. 29U.S. CITIZENSHIP MATCH WITH THE SSA . 30U.S. citizenship documentation, Updating status for citizens born abroadCITIZENS OF THE FREELY ASSOCIATED STATES. 32

ELIGIBLE NONCITIZEN MATCH WITH THE DHS. 33ARN corrections and additions to the FAFSATHIRD STEP VERIFICATION (FORMERLY FORM G-845). 35Third step verification preparation, Third step verification via the SAVE system, Eligible noncitizensand documentation, Jay Treaty, Ineligible statuses and documents, SAVE Guide to Immigration DocumentsUSING THE SAVE SYSTEM FOR THIRD STEP VERIFICATION. 44SAVE Third Step Responses, Interpreting the SAVE response, Student rightsDOCUMENTING IMMIGRATION STATUS IN LATER AWARD YEARS. 48REPLACING LOST DHS DOCUMENTS. 49EXAMPLES OF U.S. CITIZENSHIP AND ELIGIBLE NONCITIZEN DOCUMENTS. 49Chapter 3: NSLDS Financial Aid History. 57NSLDS MATCH. 58Successful match, No data from match, Postscreening, Unusual enrollment history, Documentingcredits earned when a school has closedCHECKING THE FINANCIAL AID HISTORYFOR TRANSFER STUDENTS.63EFFECT OF BANKRUPTCY OR DISABILITY DISCHARGE. 65Bankruptcy, Total and permanent disability (TPD) dischargesRESOLVING DEFAULT STATUS. 66NSLDS LOAN STATUS CODES. 68Chapter 4: Social Security Number. 71SSN MATCH. 71Successful match, No match on the Social Security number,No match on name or birth date, Missing information, Date of deathDEATH MASTER FILE.74APPLICANTS USING SAME SSN. 74EXCEPTION FOR THE FREELY ASSOCIATED STATES: MICRONESIA,MARSHALL ISLANDS, AND PALAU. 75

Chapter 5: Selective Service. 77REGISTRATION REQUIREMENT. 77EXEMPTIONS. 77SELECTIVE SERVICE MATCH.79Successful matches, Unsuccessful matchesFAILURE TO REGISTER.80Determining if non-registration was knowing and willfulChapter 6: Eligibility for Specific FSA Programs. 83FEDERAL PELL GRANTS.83Incarcerated students and sex offenders, Duration of eligibility,Eligible postbaccalaureate program, Restoring semesters of Pell eligibility for students affected byclosed schoolsIRAQ AND AFGHANISTAN SERVICE GRANTS & ZERO EFCS. 86DIRECT LOANS. 86Preparatory coursework, Teacher certification coursework, Parent borrower eligibility,Subsidized Loan Eligibility Time Limitation (150% rule), Adverse credit history for Direct PLUS,CAMPUS-BASED AID GENERAL REQUIREMENTS. 89Teacher certification programsPERKINS LOANS. 90Perkins eligibility criteria, Additional Perkins disclosures, Willingness to repay, Previous PerkinsLoan discharged in bankruptcyFEDERAL WORK-STUDY (FWS). 92FSEOG . 92TEACH GRANTS. 92Amount of grant funds available, Receiving a TEACH grant, Agreement to serve,Schools without a traditional GPA

iIntroductionThis volume of the Federal Student Aid (FSA) Handbook discusses the eligibilityrequirements for students and parent borrowers and your responsibilities to ensure that recipients qualify for their aid awards.SOURCES OF INFORMATIONThere are many factors you must consider when reviewing an applicationfor aid from the FSA programs, such as whether the student is a U.S. citizen or permanent resident, whether the applicant is making satisfactory academic progress, and whether he or she has a defaulted FSA loan. To answerthese questions you receive information about the student from differentsources, including the Department of Education’s Central Processing System(CPS) for financial aid applications and the National Student Loan Data System (NSLDS).Throughout the year, the Department of Education (The Department)provides updates to schools in the form of Dear Colleague Letters (DCLs).These and other releases, such as Federal Register notices and announcementscontaining system updates and technical guidance, are available on the Information for Financial Aid Professionals (IFAP) website (ifap.ed.gov).The FSA Handbook doesn’t cover the operation of software. For schoolsusing software from the Department, there are technical references on theFSA Download website (see the margin) that explain how the software operates. Schools using third-party software should consult the vendor’s reference materials for technical guidance.RECENT CHANGES HIGHLIGHTSHere are some of the significant changes to Volume 1:Chapter 1: Added HEA citations to Teacher certification coursework sidebar. Added new sidebar on the definition of Graduate/professionalstudents. Updated DCL citation in Recognized equivalent of a high schooldiploma sidebar. Added regulatory citation to ATB options & Eligible Career PathwayFSA HB May 2018Program and systemsinformation onlinefsadownload.ed.govSoftware: Direct Loan Tools EDconnect EDExpress for Windows SSCR for WindowsTechnical References and UserGuides for: CPS (ISIR, Summary of Changes, etc.) COD Electronic Data Exchange EDExpress Packagingifap.ed.gov Federal Registers Electronic Announcements Dear Partner/Colleague Letters FSA Assessment modules:Student dentelig.htmlSatisfactory Academic ml1–1

Vol. 1—Student Eligibility 2018–19Programs sidebar.Questions about FSA policiesE-Announcement Nov. 15, 2013For questions about Federal StudentAid policies and programs, call the new“Reach FSA,” phone line at 1-855-FSA4-FAA (1-855-372-4322). Reach FSA willhelp you determine the appropriatecall center for your question, and thentransfer you to that call center. New sidebar added: SAP pace, attendance and published length ofprogram. Conflicting information guidance updated to describe treatment of400 & 400 SAR codes. Sidebar on Resolving 400 & 401 SAR codes added.Chapter 2:FSA CoachANN-13-21FSA Coach, a self-paced, comprehensiveonline guide to the Title IV programs,has been updated for domestic schools.For more information, see:https://ifap.ed.gov/ifap/fsacoach.jspCOACH for foreign schools will be updated in the future; monitor IFAP forforthcoming training announcements. New sidebar added: Mandatory name changes. Guidance on “Paper secondary confirmation” updated to “Thirdstep verification.” New guidance added on preparing for third-step verification. Guidance on third step verification and submitting verification datathrough the SAVE system added. SAVE Guide to Immigration Documents description and linkadded.Questions or comments?If you have any comments regardingthe FSA Handbook, please contactResearch and Publications via email atfsaschoolspubs@ed.gov. New sidebar added: 15 business days timeframe, with regulatorycitation. New sidebar on requesting a new DHS verification number added. New sidebar on DHS-SAVE eligible noncitizen information pageadded, with link to third step verification IFAP page.Chapter 4 New sidebar added: Name change on the SSA website. E-Announcement citation added to COD and SSN changes sidebar. E-Announcement citation added to Pseudo-SSNs for Pacific Islanders and the FAFSA sidebar.Chapter 61–2 Updated guidance on restoring Pell eligibility for student affected byclosed schools. Added sidebar on Pell Grant Restoration for students who attendedFSA HB May 2018

Introductionclosed schools. Preparatory coursework guidance clarified re: eligible programs vs.standalone courses. Added regulatory citation to Preparatory coursework sidebar. Added new example sidebar: When preparatory coursework is notTitle IV eligible. Updated DCL citation in Remaining Perkins Loan authority sidebar.FSA HB May 20181–3

Vol. 1—Student Eligibility 2018–191–4FSA HB May 2018

Glossary-Acronyms CFR DCLSchool-DeterminedRequirementsCHAPTER1In this chapter, we discuss student eligibility requirements that don’t require information fromthe Department’s systems. The school determines on its own whether the student meets theseeligibility requirements. In some cases, the financial aid office will need to get information fromother school offices, such as the admissions office or the registrar, or from other organizations,such as high schools or testing agencies.REGULAR STUDENT IN AN ELIGIBLE PROGRAMAperson must be enrolled as a regular student in an eligible program toreceive Federal Student Aid (FSA) funds (exceptions are discussed laterin this chapter). A regular student is someone who is enrolled or accepted forenrollment in an eligible institution for the purpose of obtaining a degree orcertificate offered by the school. The requirement for an eligible program isdiscussed in Volume 2, Chapter 2.A school must document a student’s enrollment in an eligible programat the time of admission, and it must have a system to notify the financial aidoffice if the student leaves the program. It must also document that an aidrecipient is a regular student. Conditional acceptance. Some schools admit students provisionally,for example, until they provide further documentation, such as academictranscripts or test scores, or demonstrate an ability to succeed in the programby receiving acceptable grades in program coursework. Typically, theschool will limit these students’ enrollment in terms of number of courses orenrollment status until they meet the necessary conditions.Students admitted as conditional are regular students only if the schoolofficially accepts them into the eligible degree or certificate program. TheDepartment does not define official acceptance or admission. If the studentis merely allowed to take some courses before being officially admitted to theprogram, she is not considered a regular student and is not eligible for FSAfunds until she is officially admitted.Schools may offer a trial or conditional period during which a student attends a program without incurring program charges or receiving FSA funds.If the student continues beyond the trial period and enrolls as a regular student, the school can pay him FSA grants for the entire payment period andloans for the period of enrollment. Continuing education. Regular students may receive aid for classesthey take in a school’s continuing education department as long as the classesapply to their degree or certificate program.FSA HB May 2018Student eligibility34 CFR 668.32See Volume 2, Chapter 2 for eligibleprogram requirements.Regular student exampleHEA Sec. 484(a)(1), (b)(3), (4);34 CFR 668.32(a)(1)34 CFR 668.24(c)(iii)Northside Community College (NSCC)allows anyone with a high schooldiploma or the equivalent to enroll inany course. Many of NSCC’s studentsdo not intend to receive a degree orcertificate; they are not regular students.NSCC requires those who want toreceive a degree or certificate tocomplete a form stating which degreeor certificate they are studying for andto meet periodically with an academicadvisor. NSCC considers them to beregular students.Trial periods of enrollmentDCL GEN-11-12You may offer trial periods ofenrollment to allow a student to “tryout” a program, without incurringcharges or receiving Title IV (TIV)aid, before deciding to continue theprogram as a regular student andapplying for Title IV aid.1–5

Glossary-Acronyms CFR DCLVolume 1—Student Eligibility 2018–19Conditional acceptanceexamples1. Waveland University allows studentsto take graduate courses before theyhave taken the GRE, but it limits themto no more than three courses anddoes not admit them into its graduateprograms until they have submittedacceptable GRE scores. They aren’tregular students, and since the schoolhasn’t admitted them, they aren’teligible for FSA funds.2. When Wrigley University acceptsstudents into its graduate programs, itrequires that the students receive nograde lower than a “B” in the first threecourses. During this time, the schoolconsiders students to be admittedinto the program, so they are eligiblefor FSA. If, however, students receivea grade lower than a B in any of thefirst three classes, their admittance willbe withdrawn and they then will beineligible for further FSA funds.Continuing education examples1. Sheffield University has a continuingeducation department that offers manyonline (telecommunications) coursesthat students in other departments ofthe school may take and that apply tothe degree or certificate program inwhich the students are enrolled. Theseare regular students who are eligible forFSA funds.2. Windy City University has acontinuing education department thatoffers many courses. Some studentsenroll in these courses without beingadmitted to the university. They are notregular students and are not eligible forFSA funds.Remedial coursework34 CFR 668.201–6Remedial courseworkRemedial coursework prepares a student for study at the postsecondarylevel (as opposed to preparatory coursework, which prepares a studentfor a given program). A student enrolled solely in a remedial program isnot considered to be in an eligible program. If acceptance into an eligibleprogram is contingent on completing remedial work, a student cannot beconsidered enrolled in that program until she completes the remedial work.However, if the student is admitted into an eligible program and takesremedial coursework within that program, he can be considered a regularstudent, even if he is taking all remedial courses before taking any regularcourses. You may count up to one academic year’s worth of these coursesin his enrollment status for federal aid. For the purpose of this limit, that is30 semester or trimester hours, 45 quarter hours, or 900 clock hours. If theremedial classes are non-credit or reduced-credit, you must determine howmany credit hours they are worth to count toward the student’s enrollmentstatus (see “Enrollment status” section in this chapter).A remedial course cannot be below the educational level needed for astudent to successfully pursue her program after one year in that course.Also, remedial courses must be at least at the high school level, as determinedby the state legal authority, your school’s accrediting agency, or the stateagency recognized for approving public postsecondary vocational education.If that agency determines that a remedial class is at the elementary level, theschool must abide by that determination, and the class cannot be includedfor FSA purposes. Nor can FSA funds be used for a remedial course that usesdirect assessment of student learning instead of credit or clock hours.You can’t use non-credit remedial hours to deter

See Volume 2, Chapter 2 for eligible program requirements. Regular student example HEA Sec. 484(a)(1), (b)(3), (4); 34 CFR 668.32(a)(1) 34 CFR 668.24(c)(iii) Northside Community College (NSCC) allows anyone with a high school diploma or the equivalent to enroll in any course. Many of NSCC’s students do not intend to receive a degree or

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