FAFSA Financial Aid Eligibility 2 — Questions and Answers
Question 1: What happens to federal aid eligibility if a student defaults on a federal student loan?
- Eligibility is reduced by 50%
- Eligibility is suspended until the default is resolved (Correct answer)
- Nothing changes until the next FAFSA cycle
- The student is permanently banned from all aid
Correct answer: Eligibility is suspended until the default is resolved
Students in default on federal loans lose eligibility for new federal student aid until they resolve the default through repayment or rehabilitation.
Question 2: Which of the following would make a student an 'independent' student for FAFSA purposes?
- Being 23 years old
- Being enrolled in a two-year college
- Being 24 or older (Correct answer)
- Working full-time while attending school
Correct answer: Being 24 or older
Students who are 24 years of age or older as of January 1 of the award year are automatically considered independent on the FAFSA.
Question 3: What must a student do to maintain Pell Grant eligibility over multiple years?
- Reapply on the FAFSA each year and maintain SAP (Correct answer)
- Pay back any unused grant funds
- Enroll full-time every semester
- Maintain a 3.5 GPA
Correct answer: Reapply on the FAFSA each year and maintain SAP
Students must submit a new FAFSA each award year and continue meeting their school's Satisfactory Academic Progress requirements to keep Pell Grant eligibility.
Question 4: How many lifetime semesters (at full-time equivalent) of Pell Grant funding can a student receive?
- 4 semesters
- 8 semesters
- 12 semesters (Correct answer)
- Unlimited semesters
Correct answer: 12 semesters
A student can receive Pell Grant funding for up to 12 semesters (or the equivalent of 6 full academic years) over their lifetime.
Question 5: Which of the following students is eligible for federal student aid?
- A student enrolled in a non-accredited online course
- A permanent resident attending an eligible Title IV school (Correct answer)
- An international student on an F-1 visa
- A student who has already earned a bachelor's degree applying for a second bachelor's
Correct answer: A permanent resident attending an eligible Title IV school
Permanent residents attending accredited Title IV-eligible institutions qualify for most federal student aid programs.
Question 6: Which statement about federal student aid and prior educational credentials is correct?
- Students with a bachelor's degree cannot receive Pell Grants
- Students with any prior degree are ineligible for all federal aid
- Associate degree holders cannot receive subsidized loans
- Graduate students are ineligible for Pell Grants (Correct answer)
Correct answer: Graduate students are ineligible for Pell Grants
Pell Grants are only available to undergraduate students; graduate and professional students are not eligible for Pell Grant funding.
FAFSA Financial Aid Eligibility 2
What happens to federal aid eligibility if a student defaults on a federal student loan?