Student Aid Reference Desk | Institutional Eligibility

Institutional Eligibility

The law defines the characteristics and requirements that institutions must meet to be considered Title-IV eligible. The requirements vary somewhat among the three fundamental types of eligible institution, which are: public or private nonprofit institutions of higher education; proprietary (for-profit) institutions of higher education; public or private nonprofit postsecondary vocational institutions. Regulations elaborate on the basic statutory requirements, which address such factors as admissions criteria, type and length of academic program, accreditation, and state authorization to operate.

Related terms: Administrative Capability; Financial Responsibility; Program Eligibility; Program Participation Agreement

Statutory Authority

U.S. Code, Title 20—Education Chapter 28—Higher Education Resources and Student Assistance Subchapter I—General Provisions > Part A—Definitions §§ 1001 – 1003 [HEA §§ 101 – 103]

U.S. Code, Title 20—Education Chapter 28—Higher Education Resources and Student Assistance Subchapter IV—Student Assistance > Part H—Program Integrity, Subpart 3—Eligibility and Certification Procedures § 1099c Eligibility and certification procedures [HEA § 498]

Regulation

34 CFR Part 600

ED References

See also Subtopics for more specific references.

ED’s E-App Web Page

2020-21 FSA Handbook, Vol. 2

Publications, Articles & Other Resources

How to Graduate High-Risk Students (Trellis Company)

Institutional Eligibility for Participation in Title IV Student Financial Aid Programs (Congressional Research Service)

Institutional Eligibility AskRegs Knowledgebase Q&As (National Association of Student Financial Aid Administrators)

Institutional Eligibility for Participation in Title IV Student Aid Programs Under the Higher Education Act: Background and Reauthorization Issues (Congressional Research Service)

With Great Challenges Come Great Opportunities: Promising Practices of Texas Community Colleges (Trellis Company)

Subtopics

Accreditation or preaccreditation

Change of accrediting agency

2020-21 FSA Handbook, Vol. 2, Ch. 5

Definitions of “Accredited,” “Nationally recognized accrediting agency,” and “Preaccredited”

2020-21 FSA Handbook, Vol. 2, Ch. 1

Institution of higher education (public and private nonprofit)

General requirement

Arbitration stipulation

Multiple accreditation, primary accreditor, and programmatic accrediting agencies

2020-21 FSA Handbook, Vol. 2, Ch. 1

Postsecondary vocational institution

General requirement

Arbitration stipulation

Proprietary (for profit) institution of higher education

General requirement

Arbitration stipulation

Religious exception

TEACH Grant accreditation

2020-21 FSA Handbook, Vol. 2, Ch. 1

Additional locations

See also Expanding eligibility

Admissions criteria

Dually enrolled in high school and college

GEN-08-12 Attachment, p. 24

2020-21 FSA Handbook, Vol. 2, Ch. 1

High school diploma

2020-21 FSA Handbook, Vol. 2, Ch. 1

Home-schooled students

2020-21 FSA Handbook, Vol. 2, Ch. 1

Institution of higher education (public and private nonprofit)

Postsecondary vocational institution

Proprietary (for profit) institution of higher education

Recognized equivalent of a high school diploma (definition)

Regular student (definition)

Application and reapplication procedures

See also Recertification

Branch campus

General rules

2020-21 FSA Handbook, Vol. 2, Ch. 5

Adding branches

Conversion of location to branch campus

Definition of branch campus

Change in ownership and control

General rules

2020-21 FSA Handbook, Vol. 2, Ch. 5

Preacquisition review

2020-21 FSA Handbook, Vol. 2, Ch. 5

Temporary approval for continued participation

2020-21 FSA Handbook, Vol. 2, Ch. 5

Conditions of ineligibility and loss of eligibility

Bankruptcy

Change in ownership and control

Cohort default rate

Impact of Cohort Default Rates on Institutional Title IV Program Eligibility

Correspondence course limitation

2020-21 FSA Handbook, Vol. 2, Ch. 4

Correspondence student limitation

600.7(a)(1)(ii)

2020-21 FSA Handbook, Vol. 2, Ch. 4

End of institutional participation in Title IV programs: General information

Expiration of program participation agreement

Fraud or crimes involving acquisition, use, or expenditure of Title IV funds

Incarcerated student limitation

600.7(a)(1)(iii)

2020-21 FSA Handbook, Vol. 2, Ch. 4

Location ceases to be part of a participating institution

Loss of accreditation or preaccreditation

Loss of eligibility: General rules

Notifications and reports to ED due to loss of eligibility

Regular student admitted without high school credential limitation

600.7(a)(1)(iv)

2020-21 FSA Handbook, Vol. 2, Ch. 4

Substantiation through audit

Termination by ED or the institution and emergency actions by ED

Unpaid commitments of Title IV aid to students

Date, extent, duration of eligibility

Drug abuse prevention program

Educational program

See also top list entry for Program Eligibility
See also Expanding eligibility

Definition

Institution of higher education

Postsecondary vocational institution

Proprietary institution of higher education

Eligible institution (definition)

See also Institution of higher education (public or private nonprofit), Postsecondary vocational institution, Proprietary (for profit) institution of higher education

General definition

Sum of eligible programs only

2020-21 FSA Handbook, Vol. 2, Ch. 4

Eligible nonparticipating school designation (for loan deferment and other purposes)

2020-21 FSA Handbook, Vol. 2, Ch. 1

Expanding eligibility

See also Additional locations, Branch campus, Educational program

Adding locations

2020-21 FSA Handbook, Vol. 2, Ch. 5

Adding programs after designation as eligible institution

2020-21 FSA Handbook, Vol. 2, Ch. 5

Increasing level of educational programs

Foreign institution

600.51 to 600.58

Institution of higher education (public or private nonprofit)

See also Accreditation or preaccreditation, Admission criteria, Educational program, State, State authorization (“Legally authorized”)

Definition and requirements

2020-21 FSA Handbook, Vol. 2, Ch. 1

Definition of “Nonprofit institution”

Simultaneous qualification as postsecondary vocational institution

2020-21 FSA Handbook, Vol. 2, Ch. 1

Limitations imposed on eligibility due to compliance problems

Postsecondary vocational institution

See also Accreditation or preaccreditation, Admissions criteria, Educational program, State, State authorization (“Legally authorized”)

Definition and requirements

2020-21 FSA Handbook, Vol. 2, Ch. 1

Two-year rule

600.6(a)(6), (b)

2020-21 FSA Handbook, Vol. 2, Ch. 1

Program participation agreement

See top list entry for Program Participation Agreement

Proprietary (for-profit) institution of higher education

See also Accreditation or preaccreditation, Admissions criteria, Educational program, State, State authorization (“Legally authorized”)

90/10 rule

2020-21 FSA Handbook, Vol. 2, Ch. 4

Definition and requirements

2020-21 FSA Handbook, Vol. 2, Ch. 1

Two-year rule

600.5(a)(7), (b)

2020-21 FSA Handbook, Vol. 2, Ch. 1

Provisional certification

Public or private nonprofit institution in Micronesia, Marshall Islands, Palau

Qualification to participate in Title IV programs

Recertification

2020-21 FSA Handbook, Vol. 2, Ch. 5

Regaining institutional eligibility

Reporting substantive changes

General information

2020-21 FSA Handbook, Vol. 2, Ch. 5

Changes not requiring written approval from ED

2020-21 FSA Handbook, Vol. 2, Ch. 5

Changes requiring written approval from ED

2020-21 FSA Handbook, Vol. 2, Ch. 5

State

Definition

Location in

Institution of higher education

Postsecondary vocational institution

Proprietary (for-profit) institution of higher education

State authorization (“Legally authorized”)

See also State (Definition)

General rules

Federal Register, 7/3/18

2020-21 FSA Handbook, Vol. 2, Ch. 1

Definition of “Legally authorized”

Exceptions

2020-21 FSA Handbook, Vol. 2, Ch. 1

Institution of higher education

Postsecondary vocational institution

Proprietary institution of higher education

State Authorization Reciprocity Agreement

600.2, , State Authorization Reciprocity Agreement definition

668.50(b)(1)(ii)

2020-21 FSA Handbook, Vol. 2, Ch. 1

Student complaint process

Federal Register, 7/29/19

Electronic Announcement, 7/22/2019

2020-21 FSA Handbook, Vol. 2, Ch. 1

TEACH Grant additional requirements

2020-21 FSA Handbook, Vol. 2, Ch. 1

Updating application information