Who Is Not Eligible for FAFSA? Key Disqualifiers

The Free Application for Federal Student Aid (FAFSA) determines eligibility for federal student financial assistance. This aid can include grants, loans, and work-study programs designed to make higher education more accessible. Completing the FAFSA is the first step for many students seeking to finance their college education. Not every applicant qualifies for federal student aid, as specific criteria must be met. Understanding these disqualifiers helps individuals navigate the financial aid process and explore alternative funding.

Citizenship and Residency Requirements

Applicants must be U.S. citizens or eligible non-citizens. Eligible non-citizen categories include:
U.S. nationals
U.S. permanent residents holding a “green card” (Form I-551 or I-151)
Individuals with an Arrival-Departure Record (I-94) showing specific statuses such as refugee, asylum granted, Cuban-Haitian Entrant, or conditional entrant
Those with T-visa status (for victims of human trafficking) or whose parent holds a T-1 nonimmigrant status
Certain Native American students born in Canada under the Jay Treaty of 1794

Undocumented individuals, including Deferred Action for Childhood Arrivals (DACA) recipients, are not eligible for federal student aid. While they cannot receive federal financial assistance, they may still be eligible for other types of aid, such as state aid, institutional aid from colleges, or private scholarships. A parent’s or spouse’s citizenship or immigration status does not affect a student’s eligibility.

Academic and Enrollment Standards

Eligibility also depends on meeting academic and enrollment criteria. Applicants must possess a high school diploma or its recognized equivalent, such as a General Educational Development (GED) certificate, or have completed a state-approved homeschooling program. Enrollment in an eligible degree or certificate program at an accredited institution is also a requirement. The program must lead to a postsecondary credential, like an associate or bachelor’s degree.

Maintaining Satisfactory Academic Progress (SAP) as defined by the institution is an ongoing requirement. Federal regulations mandate that schools participating in Title IV federal financial aid programs establish and enforce SAP policies. These policies assess a student’s academic standing based on qualitative measures, such as a minimum Grade Point Average (GPA), and quantitative measures, including pace of completion (e.g., successfully completing a certain percentage of attempted credits) and a maximum timeframe for degree completion. For instance, many institutions require students to complete their program within 150% of its published length. Failure to meet SAP standards can result in the loss of federal aid eligibility.

Financial Aid History and Legal Standing

An applicant’s past financial aid history and legal standing can affect FAFSA eligibility. Individuals who have defaulted on a federal student loan or owe a refund on a federal student grant will be ineligible for further federal student aid until these issues are resolved. Resolution involves making satisfactory repayment arrangements or completing a loan rehabilitation program.

Historically, male applicants aged 18-25 were required to register with the Selective Service System to be eligible for federal student aid. However, this requirement was eliminated by the FAFSA Simplification Act, enacted in December 2020. As a result, failing to register with the Selective Service no longer impacts eligibility for federal student aid.

Federal or state drug convictions can impact federal student aid eligibility, though rules have evolved. As of August 2021, drug convictions no longer affect federal student aid eligibility.

Other Specific Disqualifiers

Other circumstances can also lead to FAFSA ineligibility. Each student must provide a correct Social Security Number (SSN). The FAFSA Processing System validates this number against Social Security Administration records; an application may be rejected if the SSN is incorrect or does not match the name and date of birth.

While the student needs an SSN, parents whose information is required do not need one to contribute to the application. Parents without an SSN can still create a StudentAid.gov account to access and sign the FAFSA form.

Eligibility for incarcerated individuals has seen significant changes. Historically, incarcerated individuals were largely ineligible for federal Pell Grants. However, the FAFSA Simplification Act, signed into law in December 2020, restored Pell Grant eligibility for incarcerated individuals, effective July 1, 2023. To qualify, incarcerated students must be enrolled in an approved prison education program (PEP). While Pell Grants are now accessible, incarcerated individuals remain ineligible for federal Direct Loans during their incarceration.