Things that May Affect Your Aid
Student Loan Status
Default
A student in default on a Federal Student Loan or Direct Loan is not eligible to receive Title IV aid until the default status is resolved by:
- Repayment in full, or
- Has made at least 6 consecutive, full, voluntary payments on time to the loan holder, or
- Loan rehabilitation
State Aid – for the student to be eligible for state aid, the defaulted loan(s) must be paid in full.
The student should contact the loan holder for more information on resolving loan defaults.
It is the student's responsibility to submit loan status resolution documents to the Financial Aid Office. Aid will not be disbursed to the student unless this documentation has been received and reviewed in order for Federal and state aid eligibility to be determined.
Click on the link below for more information on assistance with defaulted loan status.
Overpayment/Exceed Loan Limits
Students who have obtained Title IV program loan funds in an amount that exceeds the annual or aggregate loan limits are ineligible for any further Title IV program (Pell, SEOG, Federal Work Study) assistance until the student:
- Repays in full the excess amount; or
- Makes satisfactory repayment arrangements with the loan holder to repay the excess loan amount. The satisfactory repayment arrangements are determined by the loan holder.
- It is the student's responsibility to submit loan status resolution documents to the Financial Aid Office. Aid will not be disbursed to the student unless this documentation has been received and reviewed in order for Federal and state aid eligibility to be determined.
Bankruptcy
Students with a student loan or grant overpayment that has been discharged in bankruptcy remains eligible for Title IV aid (Pell, SEOG, Federal Work Study).
Active Bankruptcy
- Borrowers who list a non-defaulted student loan or grant in an active bankruptcy claim is eligible for Title IV funds as long as there are no loans in default.
- Borrowers who list a defaulted student loan or grant in an active bankruptcy claim is eligible for further Title IV funds if the borrower provides documentation from the loan holder stating the loan is dischargeable.