FAFSA Financial Aid Eligibility 3 — Questions and Answers
Question 1: If a student is incarcerated, what federal aid might they still qualify for?
- Pell Grants (restored in 2023-24) (Correct answer)
- Federal Direct Subsidized Loans
- Federal Work-Study
- PLUS Loans
Correct answer: Pell Grants (restored in 2023-24)
Starting with the 2023-24 award year, incarcerated students in eligible prison education programs can receive Pell Grants again.
Question 2: What is the enrollment status threshold for a student to receive a Federal Direct Subsidized Loan?
- Full-time only
- At least quarter-time
- At least half-time (Correct answer)
- At least three-quarter time
Correct answer: At least half-time
Students must be enrolled at least half-time to be eligible for Federal Direct Subsidized or Unsubsidized Loans.
Question 3: Which agency determines whether a school is eligible to participate in federal student aid programs?
- The IRS
- The U.S. Department of Education (Correct answer)
- The Consumer Financial Protection Bureau
- The State Board of Education
Correct answer: The U.S. Department of Education
The U.S. Department of Education certifies and oversees institutions eligible to participate in Title IV federal student aid programs.
Question 4: A student who was homeschooled can qualify for federal student aid if they meet which condition?
- They must obtain a GED before applying
- They must have a high school diploma or equivalent recognized by their state (Correct answer)
- They must attend a community college first
- They must be 18 or older
Correct answer: They must have a high school diploma or equivalent recognized by their state
Homeschooled students qualify for federal aid if they have completed a secondary education in a homeschool setting that is treated as a home school under state law.
Question 5: What is required for a student to regain federal aid eligibility after a drug conviction suspension?
- Completing a drug rehabilitation program or passing two unannounced drug tests (Correct answer)
- Waiting five years after the conviction
- Paying a reinstatement fee to the Department of Education
- Transferring to a different school
Correct answer: Completing a drug rehabilitation program or passing two unannounced drug tests
Students can regain eligibility early by successfully completing an approved drug rehabilitation program or passing two unannounced drug tests administered by an approved rehabilitation program.
Question 6: Which of the following is NOT a reason a student would lose federal student aid eligibility?
- Defaulting on a federal student loan
- Failing to maintain SAP
- Changing majors (Correct answer)
- Conviction for drug offense while receiving aid
Correct answer: Changing majors
Changing majors does not affect federal student aid eligibility, though it may affect a student's progress toward degree completion as tracked under SAP.
FAFSA Financial Aid Eligibility 3
If a student is incarcerated, what federal aid might they still qualify for?