8 Things That Can Disqualify You From Getting Financial Aid

Applying for financial aid through the Free Application for Federal Student Aid (FAFSA) is a critical step for students who need help covering the costs of higher education.

While many students are eligible for some form of financial aid, certain factors can disqualify applicants from receiving federal aid. Below, we explain the main reasons you might be disqualified from receiving financial aid and how to stay on track to secure the assistance you need.

1. Not Meeting Citizenship or Eligible Noncitizen Requirements

One of the most fundamental eligibility requirements for federal financial aid is U.S. citizenship or eligible noncitizen status. To qualify for federal aid, you must either be a U.S. citizen with a Social Security Number or fall into a specific noncitizen category, such as a permanent resident, refugee, or someone with asylum status.

Students who do not meet these criteria may still be eligible for state or institutional aid but will not qualify for federal loans or grants through FAFSA.

2. Lack of a High School Diploma or Equivalent

To be eligible for federal financial aid, you must have a high school diploma, a General Educational Development (GED) certificate, or an equivalent. This requirement ensures that students entering college or a technical program have met basic educational standards.

Without this qualification, you may be disqualified from receiving aid. Some exceptions exist for students enrolled in certain career pathway programs, but in general, this is a standard requirement.

3. Not Enrolled in an Eligible Program

Financial aid is only available to students enrolled in eligible degree or certificate programs. You must be accepted and enrolled in an accredited college, university, or technical school that participates in federal financial aid programs.

If you are taking non-degree courses, auditing classes, or attending a non-eligible institution, you won't qualify for federal financial aid.

Additionally, if you withdraw from your program or fall below half-time enrollment, your financial aid may be affected, including the potential loss of your aid for future semesters.

4. Failure To Maintain Satisfactory Academic Progress

Satisfactory Academic Progress (SAP) is a key condition for continuing to receive financial aid. To maintain your eligibility, you must meet your school's SAP requirements, which usually include:

• maintaining a minimum GPA
• completing a certain percentage of attempted courses
• progressing toward your degree within a specific time frame

Your financial aid may be suspended if you fail to meet these standards. Many schools offer academic probation or an appeal process, allowing students to regain their aid if they can improve their performance.

5. Defaulting on Previous Federal Student Loans

If you have previously taken out federal student loans and failed to repay them, you may be disqualified from receiving additional financial aid. Defaulting on a federal student loan can have serious consequences, including wage garnishment, tax refund withholding, and loss of eligibility for future financial aid.

To restore your eligibility, you'll need to resolve the default by repaying the loan, setting up a payment plan, or consolidating your loans.

6. Convictions for Certain Drug Offenses

A student convicted of possessing or selling illegal drugs while receiving federal financial aid may be disqualified from further aid. The length of the suspension depends on the nature and number of offenses.

Students who complete an approved drug rehabilitation program or pass two unannounced drug tests may be able to regain their eligibility for financial aid.

It's important to note that drug convictions only impact aid eligibility if the offense occurred while the student was receiving federal aid. Convictions that happen before enrolling in college or after graduation typically do not affect eligibility.

7. Failure To Register for Selective Service (for Male Students)

Male U.S. citizens and eligible noncitizens between the ages of 18 and 25 are required to register with the Selective Service to be eligible for federal financial aid. If you fail to register, you may be disqualified from receiving aid.

Students can register with the Selective Service online or check their status to confirm eligibility.

8. Inaccurate or Incomplete FAFSA Information

Submitting false or incomplete information on your FAFSA application can lead to disqualification from receiving financial aid. This includes errors in reporting income, assets, or family size, as well as intentionally misreporting information to qualify for more aid.

Inaccurate information may result in your application being flagged for verification, delaying your aid, or even leading to legal consequences for fraud.

It's essential to provide honest and accurate information when completing the FAFSA to ensure you qualify for the maximum amount of aid for which you're eligible.

Eligibility Requirements for Financial Aid

Financial aid can significantly help students cover the cost of their education, but you must meet specific criteria to qualify. Below is a brief overview of the key eligibility requirements for financial aid.

• U.S. citizenship or eligible noncitizen status
• Social Security Number
• High school diploma or equivalent
• Financial need for need-based federal student aid programs
• Enrollment in an eligible program
• Satisfactory academic progress
• Provides federal tax information for FAFSA
• Selective service registration for male students between 18 and 25
• Will not default on federal loans and will use the money for educational purposes