When students submit the FAFSA the federal government checks various federal databases to confirm that students are meeting all aid eligibility requirements. If the government is unable to confirm the student's eligibility, the student's FAFSA is flagged and the Financial Aid Office must resolve the issue before any federal aid can be awarded.
Aid Overpayment | Citizenship | Disability Discharge | Drug Convictions | Excess Borrowing | Selective Service | SSN | Identity Theft | Default/Bankruptcy | Unusual Enrollment | Veteran |
Problem | Explanation |
---|---|
Aid Overpayments |
If a student received grant money they were not eligible for they might have an overpayment reported to the federal government.
Before the student can receive additional federal aid arrangements must be made to repay the grant funds they were not eligible to receive. |
Citizenship Status |
To receive federal or state aid a student must be a US citizen or eligible non-citizen.
If the Social Security Administration does not confirm citizenship or the Bureau of Citizenship and Immigration Services (BCIS), formerly Immigration and Naturalization Service (INS), doesn't confirm eligible non-citizen status the student will have to provide proof of eligibility to the Financial Aid Office.
Original birth or immigration records are required to clear this hold. NOTE: Undocumented students or students granted Deferred Action under the Deferred Action for Childhood Arrivals (DACA) are not eligible statuses to receive federal financial aid. Please refer to the US Department of Education's publication, Financial Aid and Undocumented Students for more information. |
Disability Discharges |
Students who have had a loan discharged due to a disability cannot take out additional student loans unless they sign a statement indicating that they understand that the new loan cannot later be discharged for any present impairment unless it deteriorates to the point that they are again totally and permanently disabled.
A physician must also certify that the student can engage in substantial gainful activity. If the discharge was recent or conditional the student may have to repay the old loan as well. |
Drug Convictions
|
As of June 17, 2021, the Department of Education removed the drug conviction eligibility criteria from the FAFSA. Having certain drug convictions will no longer impact a student’s Title IV aid eligibility. |
Excess Borrowing |
If a student has borrowed student loans in excess of aggregate limits they are not eligible to receive additional federal aid of any kind until the overage has been repaid or satisfactory payment arrangments have been made.
Often the information reported to the federal government is inaccurate in which case the student needs to supply proof from the lenders that they have not exceeded the aggregate limits. |
Selective Service |
As of June 17, 2021, the Department of Education removed the Selective Service eligibility criteria from the FAFSA. Failing to register with the Selective Service will no longer impact a student’s Title IV aid eligibility. |
Social Security Number |
If the students name and date of birth don't match the Social Security Administration's (SSA) records corrections must be made. Students should use their legal names on the FAFSA.
If the student has legally changed their name it must be updated with the SSA and a new social security card issued before the hold will be cleared.
Original birth records and social security cards may be required to clear this hold. Copies are not acceptable. |
Identity Theft |
If someone else's aid history is associated with a student's social security number this can be due to clerical error or fraud. Either way it needs to be corrected by the agency reporting the erroneous information to the federal government.
Usually a student will need to show the original birth records and social security card to financial aid staff to clear up the discrepancy. |
Loan Default / Bankruptcy |
Students who are in default on a student loan are not eligible to receive federal aid.
Eligibility is regained if the student pays the loan off in full, if the defaulted loan is consolidated or if the student makes satisfactory payments for six consecutive months. The student will need to provide documentation from the lender that the default has been resolved or that federal aid eligibility has been restored.
Students who have defaulted loans listed in an active bankruptcy claim must provide documentation from the lender stating that the debt is dischargeable or clear the default as described above if they want to receive additional federal aid. |
Unusual Enrollment History |
Effective with the 2013-2014 academic year, the U.S. Department of Education has established new regulations to prevent fraud and abuse in the Federal Pell Grant Program by identifying students with unusual enrollment histories. Effective with the 2015-2016 academic year, the scope increased to all federal aid recipients, not just Federal Pell Grant recipients. Some students who have an unusual enrollment history (UEH) have legitimate reasons for their enrollment at multiple institutions. However, such an enrollment history requires our office to review your file in order to determine future federal financial aid eligibility. If selected by the Department of Education (via the FAFSA), this must be resolved before you will receive financial aid.
Definition of Unusual Enrollment History The specific pattern the Department of Education uses to select students includes those students who have received federal aid at multiple institutions during the past four (4) academic years. Once the Department of Education indicates that a student has an unusual enrollment history, the Financial Aid office must then take action and review the academic history prior to determining federal financial aid eligibility for that student.
What Will Be Required of You If selected, our office will notify you of what is required. We will check your financial aid history at your previous institutions that you attended during the previous four academic years. You are required to have received academic credit at any institution you received federal aid while attending in those relevant academic years. We will notify you which institutions you need to request official transcripts from for our office to review. Once all transcripts have been received, our office will verify the academic credit was received at each institution during the relevant year. If so, we will notify you that you have satisfied this requirement. If you failed to receive academic credit at any institution you received a Federal Pell grant at during the relevant award years, your federal financial aid will be denied and you will be notified.
Appeal Process
Regaining federal student aid eligibility |
Veteran Status |
The definition of veteran on the FAFSA is different than that used by the Department of Veterans Affairs (VA). Therefore, students who are not considered veterans by the VA are often considered veterans when applying for federal aid.
Students who think they meet the federal aid definition of veteran but do not clear this match must submit a copy of the DD-214, member 4 or a letter from their unit indicating that they will be discharged before the end of the academic year. |
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