Basic Aid Eligibility Rules


Most federal student aid programs require you to meet certain eligibility standards.

Determining Student Eligibility

Financial Need:

  1. Financial need is the computed difference between the estimated Cost of Attendance (COA) and the Expected Family Contribution (EFC). ISU calculates your COA. The federal government determines your EFC. Most federal student aid requires financial need; however, the Unsubsidized Stafford Loans and Federal Parent PLUS Loans do not require financial need.


  2. ISU requires all aid recipients must have a high school diploma or GED.


  3. You must be admitted and enrolled in a program that leads to an associate, baccalaureate, master's, or doctorate degree.

    4. There are only two exceptions for students applying for a Stafford Loan or Parent Loan.

    1. If you are required to take certain courses to qualify for admission into an eligible program (graduate or undergraduate), you can get a Stafford Loan (if otherwise eligible) for an academic year while completing that coursework. Loans for students who are completing required deficiencies are limited to $2625 (grade level 1). Documentation from the academic department is required detailing the specific courses in which you will be enrolling each term.


    2. Students who are enrolled at least half-time in a program to obtain their first Indiana teacher certification and who are not admitted to a regular degree program may also qualify for loans. Stafford Loans for students in this category are limited to $5,500 annually at a grade level 5. Documentation from the department detailing the specific classes in which you will be enrolling each term is required.


  4. You must have a valid Social Security Number. If the federal database match shows an invalid Social Security Number, or shows that your date of birth given on the FAFSA does not match their records, you will be required to provide a copy of your birth certificate and Social Security card to us.


  5. You must maintain Satisfactory Academic Progress (SAP) as defined by Indiana State University.


  6. You must be registered with the Selective Service, if required. If the federal government cannot confirm your status, you will be required to provide documentation before federal financial assistance can be disbursed. You can attempt to register now at https://www.sss.gov

  7. Students must be U.S. citizens or eligible non-citizens. If the Department of Homeland Security (DHS) does not confirm your status, you will be required to provide proof of your citizenship or eligible non-citizen status. To receive federal aid you must be:


    • A U.S. citizen OR


    • A U.S. National (includes natives of American Samoa or Swain's Island) OR


    • A U.S. permanent resident who has an I-151, I-551, or I-551C (Alien Registration receipt card) OR


    • A permanent resident of the Trust Territory of the Pacific (Palau) - (Pell, SEOG, or Federal Work-Study only) OR


    • A citizen of the Federated States of Micronesia and Marshall Islands (Pell Grants, SEOG, or Federal Work-Study)


  8. If you do not qualify under one of the conditions listed previously, you must have an Arrival/Departure Record (I-94) from the U.S. Department of Homeland Security (DHS) showing any of the following:


    • Refugee


    • Asylum Granted


    • Indefinite Parole and/or Humanitarian Parole


    • Cuban-Haitian Entrant, Status Pending


    • Conditional Entrant (if issued before 04/01/1980)


    • Other eligible non-citizen with a Temporary Resident Card (I-688)


  9. Other categories which might qualify for federal student aid are:


    1. Family Unity Status with approved I-797 (Voluntary Departure and Immigrant Petition)


    2. Students who have a suspension of deportation case pending before Congress


  10. Ineligible non-citizen categories include:


    • Notice of Approval to Apply for Permanent Residence (I-171 or I - 464A)


    • F1 or F2 Student Visas


    • J1 or J2 Exchange Visitor Visas


    • G Series Visas