Eligibility requirements for a school to receive Title IV funding.

1. Eligibility
Requirements

2. Eligible Institutions -3 Definitions
The regulations classify schools into three categories:
▪ Institution of higher education (with public or private nonprofit control)
▪ Proprietary institution of higher education (with private for-profit control)
▪ Postsecondary vocational institution (with public or private nonprofit control)
Although the criteria for the three types of institutions differ, it is possible for
some programs at an institution of higher education to meet the requirements
for a postsecondary vocational institution.

3. What is an eligible institution
It must be legally
authorized to provide
postsecondary
education by the state
where the institution
offers postsecondary
education.This is
known as state
licensure or state
authorization.
It must be accredited
by a nationally
recognized
accrediting agency, or
meet alternative
requirements if
applicable.A school
must generally be
accredited by an
agency that has the
authority to cover all
of the institution’s
programs.
It must offer at least
one eligible program.

4. Eligible Programs
▪ Different types of institutions can have different types of eligible programs.To
meet the definition of an institution of higher education, a school must have at
least one program that meets one of these definitions:
The program awards an
associate, baccalaureate,
graduate or professional
degree, or
The program is at least 2-
academic-years in length
and is acceptable for full
credit toward a
baccalaureate degree, or
The program is at least a 1-
year training program
that>>>
Leads to a certificate*,
degree, or other recognized
educational credential, and
Prepares students for gainful
employment in a recognized
occupation.
*Certificate programs at any type of institution must be individually approved and
certified by the Department of Education (ED) in order to be eligible forTitle IV funding .

5. Proprietary and Postsecondary Institutions
Eligible programs at proprietary institutions of higher education and
postsecondary vocational institutions
600 clock hours, 16 sem/tri-mester hours, or 24 QTR hours of undergrad instruction and 15
weeks instruction.
300 clock hours, 8 sem/tri-mester hours, or 12 QTR hours of instruction and 10 weeks instruction.
300-599 clock hours and 10 weeks of instruction.
▪ There are three types of eligible programs at a proprietary institution or a postsecondary
vocational institution. All of these programs must provide training that prepares a student for
gainful employment in a recognized occupation and contain a minimum of:

6. Additional eligible programs
▪ All three types of institutions may also provide a comprehensive
transition and postsecondary program for disabled individuals.
▪ A proprietary institution may provide a program leading to a
baccalaureate degree in liberal arts.The school must be recognized
by a recognized regional accrediting agency or association.The
school must have been continuously accredited by a regional
accrediting agency since at least October 1, 2007 and have provided
the program continuously since January 1, 2009.
▪ A direct assessment program approved by the Department is also
eligible.

7. TWO-YEAR-RULE
▪ To be eligible as
a proprietary
institution or a
postsecondary
vocational
institution, the
institution must
have been in
existence for at
least two years.
The department
considers an
institution to have
been in existence for
two years only if the
institution has been
legally authorized to
provide, and has
provided, a
continuous
educational program
during 24 months
preceding the date of
its eligibility
application.
The educational
program(s) offered
must have
remained
substantially the
same in length and
subject matter,
expect for changes
made because of
new technology or
requirements of
other federal
agencies.

8. Admission Standards
▪ An eligible institution may admit as regular students only persons who have a high school
diploma or its recognized equivalent, or persons who are beyond the age of compulsory
attendance in the state in which the school is located.
▪ The recognized equivalent of a high school diploma is generally either:
▪ a general educational development (GED), or
▪ a state certificate that the state recognizes as being equivalent to a high school diploma.
There are two additional special cases that are recognized as equivalent to a high school
diploma.
Homeschooled
An eligible
institution may
admit a student
who was
homeschooled.
You may rely on a homeschooled
student’s self-certification that he
or she has completed secondary
school in a homeschool setting.

9. Admissions Standards Cont.
▪ All eligible institutions may enroll students as regular students at the
institution who are also enrolled in secondary school at the same
time.This is known as dual enrollment.
▪ Students who are enrolled in secondary school at the same time as
they are enrolled at a postsecondary school are NOT eligible forTitle
IV while they are still enrolled in secondary school.They can,
however, be enrolled at the postsecondary school as regular students
without jeopardizing the school’s eligibility.

10. 90/10 Rule for Proprietary Institutions
▪ A proprietary institution may derive no
more than 90 percent of its revenues
from theTitle IV Federal Student Aid
programs.Ten percent of revenues
must come from non-Title IV sources.
The non-Title IV revenues can include
tuition, fees, other institutional
charges, and fees from school activities
necessary for students enrolled in
eligible programs at the school.
Revenues
Title IV FSA NON-Title IV FSA

11. 90/10 Failure
If a school fails to
satisfy the 90/10 Rule
for one year, its
participation status
becomes provisional
for two fiscal years.
If a school fails to
meet the 90/10 Rule
for two consecutive
fiscal years, it loses its
eligibility to
participate in the FSA
programs for at least
two fiscal years.
Schools have 45 days
after the end of the
most recent fiscal
year to report to the
Department if they
did not satisfy the
90/10 Rule for the
fiscal year.
The calculation is
made using the cash
basis of accounting
and reported as a
footnote in the
school’s annual
audited financial
statements.

12. Correspondence Course and Student
Limitation
An
institution
becomes
ineligible
if, for the
latest
complete
award
year:
• More than 50% of the school’s
courses were correspondence
courses.
• 50% or more of the school’s
regular students enrollment
status were in correspondence
courses.

13. Incarcerated Student
▪ A school will loseTitle IV eligibility if, in the latest complete award
year, more than 25 percent of its regular students are incarcerated.
The requirement may be waived for public or nonprofit schools
providing two-year or four-year programs.The school must apply for
the waiver via the electronic application before exceeding the limits.

14. Ability-to-Benefit
▪ A school will loseTitle IV eligibility if, for the latest completed award
year, more than 50 percent of the regularly enrolled students did not
have a high school diploma or its equivalent.There is an exception to
this rule for schools that provide a two-year associate degree
program or a four-year bachelor’s degree program.
▪ The Department may grant a waiver to a nonprofit school that
exceeds the 50 percent limit because it serves significant numbers of
these students through contracts with federal, state, or local
government agencies.View information about this requirement.

15. Crimes Involving FSA Funds
has been convicted of, or has
pled no contest or guilty to, a
crime involving the
acquisition, use, or
expenditure ofTitle IV funds.
has been administratively or
judicially determined to have
committed fraud involving
Title IV funds.
School is not eligible if the school, its
owner, or any employee involved in
the administration of FSA funds…….