Federal student aid programs
reauthorized under Title IV of the Higher Education Amendments of 1992.
Sources of Title IV Aid funding include the following: Federal Family
Education Loan Program (Federal Stafford Student Loan (subsidized and
un-subsidized) Federal Perkins Student Loan, Federal Parent Loan for
Undergraduate Students and Federal Supplemental Loan for Students)
Federal Campus-Based Grants (Federal Supplemental Education Opportunity
Grant and the Federal Pell Grant Program.
Available Only to Eligible Students
Enrolled in Eligible Programs at Eligible Institutions
Types of Eligible Institutions:
Institution of Higher Education
Public or Private Nonprofit
Institution Located in U.S. or Its Territories
Proprietary Institution of
Higher Education
Private, For-Profit Institution
Located in U.S. or Its Territories
Postsecondary Vocational
Institution
Public or Private Nonprofit
Institution Located in U.S. or Its Territories
Eligible Programs:
Associate’s, Bachelor’s,
Graduate or Professional Degree; or
At Least a Two-Year Program That
Is Acceptable for Full Credit Toward a Bachelor’s Degree; or
At Least a One-Year (Federal
Definition) Program That Leads to a Credential and Prepares Students
for Gainful Employment in a Recognized Occupation
Proprietary Institution of
Higher Education
All Eligible Programs Must
Provide Training for Gainful Employment in a Recognized Occupation
and at Least One of the Following Programs of Study:
At Least 15-Week Undergraduate
Program (600 Hours or 16 Semester or 24 Quarter Credits); or
At Least 10-Week Program (300
Hours or 8 Semester or 12 Quarter Credits) at Graduate Level or That
Admits Only Students with at Least an Associate’s Degree; or
At Least 10-Week Undergraduate
Program (300-599 Hours) That Admits Students without Associate’s
Degree and That Has Verified Completion and Placement Rates of at
Least 70% (Federal Calculation), Has Been in Existence for at Least
One Year, and Meets Certain Program Length
Eligible Institution:
Must Be Licensed or Otherwise
Authorized by the State Where It Operates to Offer a Postsecondary
Education Program
Must Be Accredited by a
Nationally Recognized Accrediting Agency
Must Admit as Regular Students
only Persons with High School Diplomas or the Recognized Equivalent
or Persons beyond the Age of Compulsory School Attendance
Two-Year Rule (Proprietary and
Vocational Institutions Only)
Must Have Been Licensed and
Offering the Same Postsecondary Instruction for at Least Two
Consecutive Years
90/10 Rule (Proprietary
Institutions Only)
Must Not Derive More Than 90% of
Revenues from Title IV Funds
Must Offer at Least One Eligible
Program
Must Not Have Filed for
Bankruptcy Protection
Institution, Owner, and CEO Must
Not Have Pled Guilty, Pled No Contest, or Been Found Guilty of a
Crime or Determined to Have Committed Fraud Involving Title IV Funds
At Least 50% of the Regular
Students Enrolled in an Award Year Must Be High School Graduates or
the Equivalent
No More Than 25% of the Regular
Students Enrolled in an Award Year Can Be Incarcerated
No More Than 50% of Courses in
an Award Year Can Be Offered by Correspondence and
Telecommunications Courses are Correspondence Courses if All
Telecommunications Courses and Correspondence Courses Together Equal
at Least 50% of All Courses Provided
No More Than 50% of Regular
Students Enrolled in an Award Year Can Be Enrolled in Correspondence
Courses
Federal Definitions:
Academic Year (Two
Components)
Calendar Time 30 Weeks
Amount of Instruction 900
Clock Hours; or
24 Semester Credits; or 36
Quarter Credits
Clock Hour to Credit
Formulas
Must Be Able to Process
Title IV Electronically
Must Designate Capable
Individual to Administer Title IV Programs
Must Provide Financial Aid
Counseling
Must Have Adequate Staffing
Must Adopt an Acceptable
Satisfactory Academic Progress Policy
Must Not Exceed Student Loan
Default Limits
New Schools Must Develop
Default Management Plans
New Schools Must Have
Withdrawal Rate No More Than 33% (Federal Calculation)
Neither School nor Any
Principal Has Been Debarred or Suspended
Financial Responsibility
Assessment of Whether School
Can:
Provide Services Described
in Its Publications
Properly Administer Title IV
Funds
Meet All of Its Financial
Obligations
Responsible If It Has
Composite Score of at Least 1.5 and Has Sufficient Cash Reserves
to Make Required Refunds
Is Current in Debt Payments
Must Submit Irrevocable
Letter of Credit
Acceptable and Payable to
Department
Equal to 50% of Title IV
Funds that Department Determines School Would Receive in Initial
Year of Participation
Federal Pell Grant
Direct Non-repayable grant from the
federal government to the student. Enrolled at least half-time Award
determined by Federal Government. Recipients: Qualified Undergraduates
Federal Supplemental Educational
Opportunity Grant (FSEOG)
Non-repayable grant to student by
the institution from the federal government. Up to a maximum of $4000
(Determined by the institution) Requirements: Needy undergraduate
student, complete FAFSA, Financial Aid Application Deadline: Valid
student Aid Report received by May 1st
Federal Work Study Program
Provides part-time, self help
employment opportunities on campus.
Work is awarded on the basis of
family financial need. To qualify you must complete the Free Application
for Federal Student Aid (FAFSA). Requirements: Undergraduate w/out prior
degree, at least 3/4 time student, seeking degree, FAFSA.
Federal Stafford Loan Program
Long term, low interest loan from
private lenders. Undergraduate and graduate students carrying at least
one-half the normal academic load at an eligible institution. Degree
seeking student. Up to $2,625 per academic year for 1st year
undergraduates, $3,500 for 2nd year undergraduates, up to $5,500 per
academic year for undergraduates who have completed their 1st and 2nd
year, but have not completed their program with an aggregate limit of
$23,000 for dependent students and $46,000 for independent students.
Up to $8,500 per academic year for
graduate or professional students with a total aggregate limit of
$138,500 including undergraduate loans
Subsidized: Need based; must submit
FAFSA
Unsubsidized: Student pays interest
or capitalizes interest while in school or deferment; must submit FAFSA