Volume 1

Student Eligibility

Introduction

This volume of the Federal Student Aid Handbook discusses the eligibility requirements for student and parent borrowers and your responsibilities to ensure that recipients qualify for their aid awards.


Sources of Information

There are many factors you must consider when reviewing an application for 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 they have a defaulted FSA loan. To answer these questions, you will receive information about the student from different sources, 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 for schools in the form of Dear Colleague Letters (DCLs). These and other releases, such as Federal Register notices and electronic announcements, contain system updates and technical guidance, and are available on the FSA Partner Connect website (fsapartners.ed.gov). The FSA Handbook does not cover the operation of software. For schools using software provided by the Department, there are technical references on FSA Partner Connect that explain how the software operates. Schools using third-party software should consult the vendor’s reference materials for technical guidance.

Knowledge Center’s Software & Other Tools

Software:

  • Direct Loan Tools

  • EDconnect

  • EDExpress for Windows

  • SSCR for Windows

Technical References and User Guides for:

  • CPS (ISIR, Summary of Changes, etc.)

  • COD

  • Electronic Data Exchange

  • EDExpress Packaging

  • Federal Registers

  • Electronic Announcements

  • Dear Partner/Colleague Letters

  • FSA Assessments

FSA Coach Fundamentals, a self-paced, comprehensive online guide to the Title IV programs, has been updated for domestic schools. For more information, see: https://fsapartners.ed.gov/knowledge-center/library/dear-colleague-letters/2022-07-28/training-workshops-2022-23-fundamentals-training-series

COVID-19 Guidance and Waivers

The Department of Education recognizes that the ongoing COVID-19 pandemic has created many unique challenges for postsecondary institutions. The Department has provided a variety of special guidance and regulatory flexibilities due to the President’s declaration of the COVID-19 national emergency on March 13, 2020. In addition, Congress has passed legislation offering relief from certain statutory requirements related to the Title IV, HEA programs. Generally speaking, the COVID-19 flexibilities and waivers remain in effect until the COVID-19 national emergency is declared over. As of the date of publication of this Volume of the FSA Handbook, the COVID-19 national emergency is still in place. For more details, see the Electronic Announcement of January 15, 2021, and the websites listed below. For COVID-19 related guidance, including waivers and exemptions of normally applicable Title IV rules, please see the following webpages:

Recent Changes

Throughout Volume 1, there are cross-references to several new Volumes of the FSA Handbook which have been added in 2023-24, including Volume 7, The Federal Pell Grant Program; Volume 8, The Direct Loan Program; and Volume 9, The TEACH Grant Program. Throughout the volume, we have added and updated many hyperlinks, which you can click on for easy access to regulations and other supporting guidance. Here are some of the other significant changes to Volume 1 for 2023-2024:

Chapter 1:

  • Guidance on the definition of undergraduate and graduate or professional student moved to Chapter 1 from Volume 3, Chapter 5

  • Clarified guidance on defining the quantitative SAP standard for subscription-based programs

  • Clarified guidance for assessing enrollment status for Pell, FWS, and TEACH Grants

  • New example added: Minimum standards for full-time enrollment for programs using prorated equivalents of 24 semester hours or 36 quarter hours but not using terms

  • Imported guidance on eligibility and enrollment status for retaking coursework from Vol. 3, Chapter 1

  • Clarified guidance on restrictions to coursework/learning which is not Title IV-eligible

  • Updated guidance on confined or incarcerated individuals and Prison Education Programs (PEPs)

  • Updated Losing eligibility section to refer to the Fresh Start Initiative, which is described in DCL GEN-22-13

Chapter 2:

  • Information on potential eligibility for certain Ukrainian citizens/nationals and Afghan citizens/nationals was added after the publication of the 2022-23 edition, see the FSA Handbook Errata page for more details

  • Updated guidance on how to address Third-step USCIS processing delays

Chapter 3:

  • Clarified guidance on Title IV loan default and eligibility

  • Information on resolving conflicting information in NSLDS has been moved to Chapter 3 from Volume 3, Chapter 5

  • We moved the following information from Volume 4, Chapter 3 to Volume 1, Chapter 3:

    • Information about mid-year transfer students not identifying themselves as transfers and the importance of requesting transfer student monitoring in NSLDS for such students

    • Information that indicates once an overpayment is reported to NSLDS, the student’s future SAR/ISIR output documents will show the overpayment

Chapter 4:

  • Added new contact information for the COD School Relations Center

Chapter 5:

  • Chapter 5 (Eligibility for Specific FSA Programs) has been removed from Volume 1, and all content of that chapter moved to Volume 6 and new Volumes 7, 8, and 9

We appreciate any comments that you have on Volume 1 of the FSA Handbook. We revise the text based on questions and feedback from the financial aid community, so please reach out to us about how to improve the Handbook through the “Contact Customer Support” feature in the Partner Connect Help Center, by clicking on “FSA Handbook” under the Topic section.

Last Modified: 02/01/2023 • Published: 03/28/2021