Volume 2

School Eligibility and Operations

Introduction

This volume of the Federal Student Aid Handbook comprises topics pertaining to colleges’ general obligations in administering the Title IV student aid programs: institutional and program eligibility, administrative requirements, audits, record keeping, program reviews, and providing information to the public are all explained.

Throughout the Handbook we use “college,” “school,” and “institution” interchangeably unless some more specific use is given. Similarly, “student,” “applicant,” and “aid recipient” are synonyms. “Parents” in this volume refers to the parents of dependent students, and “you” refers to the primary audience of the Handbook: financial aid administrators at colleges. “We” indicates the United States Department of Education (Department, ED), and “federal student aid” and “Title IV aid” are synonymous terms for the financial aid offered by the Department.

We appreciate any comments that you have regarding the Federal Student Aid Handbook. We revise and clarify the text in response to questions and feedback from the financial aid community, so please contact us at fsaschoolspubs@ed.gov to let us know how to improve the Handbook so that it is always clear and informative.

This introduction only summarizes the changes and clarifications presented in more detail in the chapters. For more complete guidance, refer to the text in the chapters cited and the pertinent regulations and statutes.

COVID-19 Guidance and Waivers

The Department of Education recognizes the many unique challenges the COVID-19 pandemic created for postsecondary institutions; consequently, a variety of special guidance and regulatory flexibilities were provided due to the President’s declaration of the COVID-19 national emergency on March 13, 2020. Additionally, Congress passed legislation offering relief from certain statutory requirements related to the Title IV, HEA programs.

The COVID-19 national emergency officially ended on April 10, 2023, through enactment of H.J. Res. 7, Public Law No. 118-3. The COVID-19 public health emergency ended on May 11, 2023. These actions have triggered the sunset of many of the waivers and flexibilities for the Federal student financial aid programs related to the COVID-19 pandemic.

For COVID-19 related guidance, including waivers and exemptions of normally applicable Title IV rules, please see the following webpages:

Noteworthy Changes

Changes for 2023-2024

In Chapter 2, under the “Prison Education Programs” (PEP) section, we provided new guidance on how public and private non-profit institutions can both apply for and maintain Title IV eligibility for PEP programs. For further detail on Prison Education Programs, see Dear Colleague Letter GEN-23-05.

In Chapter 3, under the “Sharing Information with NSLDS” section, we provided additional guidance for updating borrower information when student’s enrollment status changes as found in 34 CFR 685.309(b). We also updated the instructions link for the Annual Validation of TG Numbers requirement from the November 15, 2022 announcement.

In Chapter 4, under the “90/10 Revenue Test” section, we provided additional guidance on a school’s timely notification requirements to both the Department and its students upon failure to meet the 90/10 rule as found in 34 CFR 668.28. In addition, we provide some clarity on Counting Revenues for the 90/10 rule. See the 90/10 Questions and Answers for additional guidance.

In Chapter 5, under the “Temporary Approval for Continued Participation” section, we provided updated guidance on new Change in Ownership requirements for a Temporary Program Participation Agreement as outlined in 34 CFR 600.20(g) and Electronic Announcement GEN-23-77.

In Chapter 5, both new guidance and a chart has been added to the section on “Changes to Location, Branch or Campus” summarizing circumstances of when a change at a branch campus or additional location is considered a closure.

In Chapter 6, we provide current guidance on “Arbitration agreements and class action waivers as a condition of enrollment” no being longer enforceable, and the necessary steps schools must take as specified in 34 CFR 685.300(f)(3)(iii)(A) or (B) respectively. For additional information on requirements under the new Final Rule, see Dear Colleague Letter GEN-23-10.

In Chapter 6, we updated guidance on a school’s required list of elements for their Cost of Attendance (COA) requirement under the FAFSA Simplification Act. The Dear Colleague Letter GEN-22-15: FAFSA Simplification Changes for Implementation in 2023-24 provides a detailed breakdown of these changes and a Questions and Answers section.

In Chapter 6, Loan Counseling information has been moved to new Volume 8.

Last Modified: 10/25/2023 • Published: 03/28/2021