Volume 1 Student Eligibility Table of Contents Introduction...................................................................................................1 Chapter 1: School-Determined Requirements.........................................5 REGULAR STUDENT IN AN ELIGIBLE PROGRAM ....................................................................................... 5 Remedial coursework, Preparatory coursework, Teacher certification coursework, Students with intellectual disabilities ELEMENTARY OR SECONDARY ENROLLMENT ........................................................................................... 9 ACADEMIC QUALIFICATIONS ......................................................................................................................10 Checking the validity of a high school diploma, Foreign high school diplomas, Recognized equivalents of a high school diploma, Homeschooling, Ability-to-Benefit (ATB) alternatives & eligible career pathway programs SATISFACTORY ACADEMIC PROGRESS (SAP) ..........................................................................................19 Grades and pace of completion; Financial aid warning; Appeals, financial aid probation, and academic plans; Reestablishing aid eligibility ENROLLMENT STATUS ...................................................................................................................................26 STUDENTS CONVICTED OF POSSESSION OR SALE OF DRUGS ............................................................29 Standards for a qualified drug rehabilitation program INCARCERATED STUDENTS ..........................................................................................................................31 CONFLICTING INFORMATION ......................................................................................................................32 CHANGE IN ELIGIBILITY STATUS .................................................................................................................34 Gaining eligibility, Losing eligibility RELIGIOUS ORDER STUDENT ELIGIBILITY ................................................................................................35 DEFENSE OF MARRIAGE ACT .......................................................................................................................35 Chapter 2: U.S. Citizenship & Eligible Noncitizens .............................. 37 U.S. CITIZENSHIP AND ELIGIBLE CATEGORIES ........................................................................................37 U.S. CITIZENSHIP MATCH WITH THE SSA .................................................................................................39 U.S. citizenship documentation, Updating status for U.S. citizens born abroad CITIZENS OF THE FREELY ASSOCIATED STATES ......................................................................................42 ELIGIBLE NONCITIZEN MATCH WITH THE DHS ........................................................................................43 ARN corrections and additions to the FAFSA THIRD STEP VERIFICATION (FORMERLY FORM G-845) ..........................................................................46 Third step verification preparation, Third step verification via the SAVE system, Eligible noncitizens and documentation, Jay Treaty, Ineligible statuses and documents ELIGIBLE NONCITIZENS AND DOCUMENTATION.....................................................................................46 USING THE SAVE SYSTEM FOR THIRD STEP VERIFICATION ..................................................................56 SAVE third step responses, Resend record to matches process, Interpreting the SAVE response, Student rights DOCUMENTING IMMIGRATION STATUS IN LATER AWARD YEARS ......................................................62 REPLACING LOST DHS DOCUMENTS .........................................................................................................63 EXAMPLES OF U.S. CITIZENSHIP AND ELIGIBLE NONCITIZEN DOCUMENTS ...................................63 Chapter 3: NSLDS Financial Aid History .............................................. 71 NSLDS MATCH .................................................................................................................................................73 Successful match, No data from match, Postscreening, Unusual enrollment history (UEH), Documenting credits earned when a school has closed CHECKING THE FINANCIAL AID HISTORY FOR TRANSFER STUDENTS ...........................................................................................................................79 EFFECT OF BANKRUPTCY OR DISABILITY DISCHARGE .........................................................................82 Bankruptcy, Total and permanent disability (TPD) discharges RESOLVING DEFAULT STATUS ......................................................................................................................83 NSLDS LOAN STATUS CODES .......................................................................................................................85 Chapter 4: Social Security Number ......................................................... 87 SOCIAL SECURITY NUMBER (SSN) MATCH ...............................................................................................87 Successful match, No match on the Social Security number, No match on name or birth date, Missing information, Date of death DEATH MASTER FILE ......................................................................................................................................91 APPLICANTS USING SAME SSN ........................................................................................................................ EXCEPTION FOR THE FREELY ASSOCIATED STATES: MICRONESIA, MARSHALL ISLANDS, AND PALAU .............................................................................................................92 Chapter 5: Selective Service ..................................................................... 93 REGISTRATION REQUIREMENT ....................................................................................................................93 EXEMPTIONS ....................................................................................................................................................95 SELECTIVE SERVICE MATCH .........................................................................................................................97 Successful matches, Unsuccessful matches FAILURE TO REGISTER ....................................................................................................................................98 Determining if non-registration was knowing and willful Chapter 6: Eligibility for Specific FSA Programs ................................101 FEDERAL PELL GRANTS ...............................................................................................................................101 IRAQ AND AFGHANISTAN SERVICE GRANTS & ZERO EFCS ................................................................105 DIRECT LOANS ...............................................................................................................................................105 Preparatory 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 ..................................................................................110 Teacher certification programs PERKINS LOANS ............................................................................................................................................111 FEDERAL WORK-STUDY (FWS) ..................................................................................................................111 FSEOG .............................................................................................................................................................112 TEACH GRANTS .............................................................................................................................................112 Amount of grant funds available, Receiving a TEACH grant, Agreement to serve, Schools without a traditional GPA Introduction i This volume of the Federal Student Aid (FSA) Handbook discusses the eligibility requirements for students and parent borrowers and your responsibilities to en- sure that recipients qualify for their aid awards. SOURCES OF INFORMATION here are many factors you must consider when reviewing an application Tfor aid from the FSA programs, such as whether the student is a U.S. citi- zen or permanent resident, whether the applicant is making satisfactory aca- demic progress, and whether he or she has 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 Sys- tem (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 asFederal Register notices and electronic announcements, contain system updates and technical guidance, and are available on the Information for Financial Aid Professionals (IFAP) website (ifap.ed.gov). The FSA Handbook does not cover the operation of software. For schools using software provided