20 U.S.C. § 1091 — Student eligibility

(a) In general. To receive aid under this subchapter, a student must—(1) be enrolled or accepted in a degree, certificate, or other program leading to a recognized credential at an eligible higher-education institution, including an approved credit-bearing study-abroad program, and not be in elementary or secondary school; (2) if enrolled, maintain satisfactory progress under (c); (3) not owe a grant refund or be in default on a covered student loan; (4) file with the Secretary, during the original aid application, a certification that need not be notarized. The certification must include a statement of educational purpose saying the money will be used only for attendance-related expenses and the student’s Social Security number; (5) be a United States citizen or national, a permanent resident, or provide Immigration and Naturalization Service evidence of being in the United States for a nontemporary purpose with intent to become a citizen or permanent resident; and (6) if convicted of or pleading guilty or nolo contendere to fraudulently obtaining aid, have repaid the money to the Secretary or, for a loan, to its holder. (b) Eligibility for student loans. (1) For most loans, a non-graduate or nonprofessional student in a program at an institution with the required Pell Grant participation agreement must either (A) have a Pell eligibility decision for the enrollment period and, if eligible, apply for the Pell Grant, or (B) apply to the Pell processor and receive the institution’s financial-aid administrator’s preliminary eligibility decision. This does not apply to the loans listed in the statute. (2) For a loan under § 1078–1, the student must have a need decision, apply if found needy, and apply for a § 1078–8 loan if eligible. (3) A student carrying at least half the normal full-time workload and taking prerequisite coursework for a degree or certificate may apply for part B or D loans despite (a)(1), but only for one 12-month period. (4) A student carrying at least half the normal full-time workload and enrolled or accepted in a program needed for a State-required teacher credential may apply for part B, D, or E loans or part C work assistance. (5) An incarcerated student may not receive a loan under this subchapter. (c) Satisfactory progress. (1) A student maintains satisfactory progress if the institution reviews progress at the end of each academic year or equivalent and, at the end of the second such year, the student has at least a cumulative C average or equivalent, or academic standing consistent with graduation requirements as the institution determines. (2) A student who loses eligibility under (a)(2) and later has graduation-consistent standing for a grading period may again qualify, subject to this subsection. (3) The institution may waive (1) or (2) for undue hardship caused by a relative’s death, the student’s injury or illness, or special circumstances the institution determines. (d) Students without high-school diplomas. (1) A student without a secondary-school graduation certificate or recognized equivalent may receive the listed aid only if—(A) enrolled in an eligible career-pathway program and meeting one of these standards: (i) passing an independently administered Secretary-approved test with a score showing the student can benefit; (ii) being found able to benefit through a State process, which takes effect six months after submission unless disapproved, with the Secretary considering effectiveness, cultural diversity, economic circumstances, and educational preparation; or (iii) being found by the institution able to benefit after satisfactorily completing six applicable credit hours or equivalent coursework; or (B) completing secondary education at home in a setting treated as home or private school under State law. (2) “Eligible career pathway program” means a program combining rigorous, high-quality education, training, and other services that—(A) matches State or regional industry skill needs; (B) prepares a person for the full range of secondary or postsecondary options, including registered “apprenticeships”; (C) provides counseling for education and career goals; (D) when appropriate, provides education at the same time and in the same setting as workforce preparation and occupation-specific training; (E) organizes services around the person’s needs to speed education and career progress when practicable; (F) enables a secondary diploma or equivalent and at least one recognized postsecondary credential; and (G) helps the person enter or advance in an occupation or occupational cluster. (e) Certification for GSL eligibility. An eligible institution may certify a student for a part B lender loan before completing the regulatory accuracy review if checks are mailed to the institution before disbursement, payment waits until review is complete, and the institution has no evidence that the application information is wrong. (f) Loss for violating loan limits. (1) A student is ineligible for all aid under this subchapter if the institution finds the student fraudulently borrowed above annual or aggregate limits under parts B, D, or E. (2) If the excess borrowing was inadvertent, the institution must let the student repay the excess before certifying further aid. (g) Immigration verification. (1) The Secretary must verify, before aid is received, statements and required documents supporting compliance with (a)(5). (2) Admission documents held by an eligible institution may substitute for the documents used to establish work authorization and identity for part C work-study eligibility. (3) The Secretary may verify through an automated or other data match with federal agencies. (4) If a noncitizen submits the statement but required documents are missing or unverified, the institution must give a reasonable chance to provide satisfactory-status evidence and may not delay, deny, reduce, or end aid on immigration grounds before doing so. If submitted documents are reasonably sufficient, the institution must send copies or specified information to the Immigration and Naturalization Service for official verification, may not take those actions while verification is pending, and is not liable for the Service’s action, delay, or failure. (h) Limits on enforcement against institutions. The Secretary may not take compliance, disallowance, penalty, or other regulatory action against an institution for an eligibility error based on citizenship or immigration status if the institution relied on Service verification, had to provide the reasonable opportunity in (g)(4)(A)(i), or had to await Service verification under (g)(4)(B)(i). (i) A loan guaranty remains valid for payments made before the lender receives notice to stop, when the guaranty was made, the required process had been followed, and a later immigration-status decision makes the person ineligible. (j) Repealed. This subsection has been repealed. (k) Correspondence courses. A student may receive aid for a correspondence course only if it is part of a program leading to an associate, bachelor’s, or graduate degree. (l) Distance education. (1) A course principally offered through distance education that leads to a recognized certificate or degree is not a correspondence course, except for an institution or school described in § 2302(3)(C). (2) Aid must be reduced if an aid officer decides under § 1087tt that distance education substantially reduces the student’s cost of attendance. (3) For award years beginning before July 1, 2008, the Secretary may not act against a student or institution for an earlier award if the institution shows the course would have complied with this subsection. (m) Prior degree. A prior bachelor’s or professional degree does not by itself make a student ineligible for parts B, C, D, or E aid. (n) Study abroad. Nothing in this chapter limits an approved study-abroad program. An otherwise eligible student may receive aid for an institution-approved, credit-bearing study-abroad program even if it is not required for the degree. (o) Social Security verification. The Secretary, working with the Social Security Commissioner, must verify each student’s Social Security number and—(1) while verification is pending, an institution generally may not deny, reduce, delay, or end aid; (2) if the number is wrong, the institution must deny or end aid until the student provides documented proof of a number the institution finds correct; (3) if no correct number can be provided and a part B loan was guaranteed, the institution must tell the lender and guaranty agency to stop future payments, while earlier payments remain guaranteed; and (4) no action may be taken against an institution or student for a number error unless it resulted from that party’s fraud. (p) IRS income data. The Secretary, working with the Treasury Secretary, must meet the data-transfer requirements in 26 U.S.C. § 6103(l)(13) and the procedures in § 1098h. (q) Students with intellectual disabilities. (1) The terms “comprehensive transition and postsecondary program for students with intellectual disabilities” and “student with an intellectual disability” have the meanings given in § 1140; this section does not define them. (2) Despite (a), (c), and (d), such a student may receive § 1070a, subpart 3 part A, or part C grant or work aid only if enrolled or accepted in such a comprehensive program, making satisfactory progress under institutional standards, and meeting (a)(3), (4), (5), and (6). (3) Unless a later law specifically refers to this section, the Secretary may waive statutory student-aid or institutional-eligibility rules, other than part F rules, as needed to let otherwise eligible programs receive aid. (4) The Secretary must issue regulations allowing such programs to receive the awards despite ordinary rules about eligible programs, instructional time, credit status, and enrollment status. (r) Data analysis. Within one year after August 14, 2008, the Secretary must analyze FAFSA data on the number, characteristics, and circumstances of students denied aid because of a drug conviction while receiving aid. The results must be continuously posted on the Department website and in the Digest of Education Statistics. The data must be updated at the start of each award year and at least once more during it. Each fiscal year the Secretary must report the data-system results to the authorizing committees. (s) Selective Service. Despite 50 U.S.C. § 3811(f), a person is not ineligible for aid or a benefit under this subchapter merely because the person was required to register under § 3802 and failed to register as required by a proclamation, rule, or regulation. (t) Confined or incarcerated individuals. (1)(A) A “confined or incarcerated individual” is a person serving a criminal sentence in a federal, State, or local correctional institution, but not a person in a halfway house or home detention or sentenced only to weekends. (B) A “prison education program” is an eligible program offered by a higher-education institution that is approved to operate in the facility; has been found by the corrections authority or Bureau of Prisons to be in students’ best interests, considering such factors as post-release education, job placement, earnings, recidivism, instructor experience and turnover, credit transfer, and advising; transfers credits to at least one in-State institution (or, for a federal facility, one in the State where most participants will live); has not in the prior five years been suspended or terminated under this subchapter, acted against by its accreditor, or had a State license revoked; meets applicable professional-licensing education and examination requirements in the relevant State; and does not train for a job that typically bars formerly incarcerated people from licensure or employment in the relevant State. (2) The Secretary, with the Attorney General, must give technical assistance to authorities making those best-interest decisions. (3) A qualifying confined or incarcerated person may receive a Pell Grant only if enrolled or accepted in a prison education program. (4) Within one year after December 27, 2020, the Secretary, with the Institute of Education Sciences Director, must fund an external evaluation of access to and completion of FAFSA; in-custody and post-release outcomes, including credentials, facility safety, waiting lists, continued education, employment, earnings, and recidivism; recipients at one, three, and five years after release; and reentry or career services and their effectiveness. Beginning no later than one year after funding and annually afterward, each institution operating such a program must report its assisted activities and students and applicable evaluation information. (5) Within one year after that date and at least annually, the Secretary must report publicly and to authorizing committees on the subsection’s impact, including participating institutions, recipients, spending and per-student comparisons, demographics, costs, instruction mode, academic outcomes and satisfaction information, post-release education, earnings, transfer and job placement, recidivism, transfers between programs, common programs and courses, instructor turnover, each program’s results, and best practices.