Pell Grant Title IV Qualifications



Students must attend a Title IV school in order to be eligible to receive a Pell Grant.  Title IV represents education laws and regulations governed by the Department of Education within the Federal Student Aid Program.  Below are the qualifications that schools must meet to be considered a Title IV school:

+  Must Be Licensed or Otherwise Authorized by the State Where It Operates to Offer a Postsecondary Education Program

+  Must Be Accredited by a Nationally Recognized Accrediting Agency

+  Must Admit as Regular Students only Persons with High School Diplomas or the Recognized Equivalent or Persons beyond the Age of Compulsory School Attendance

+  Two-Year Rule (Proprietary and Vocational Institutions Only)

+  Must Have Been Licensed and Offering the Same Postsecondary Instruction for at Least Two Consecutive Years

+  90/10 Rule (Proprietary Institutions Only),  Must Not Derive More Than 90% of Revenues from Title IV Funds

+  Must Not Have Filed for Bankruptcy Protection

+  Institution, Owner, and CEO Must Not Have Pled Guilty, Pled No Contest, or Been Found Guilty of a Crime or Determined to Have Committed Fraud Involving Title IV Funds

+  Ability-to-Benefit Rule (Non-Degree Institutions Only).  Students must be able to use what is learned in school and apply to what they do in the workforce. 

+  At Least 50% of the Regular Students Enrolled in an Award Year Must Be High School Graduates or the Equivalent

+  No More Than 25% of the Regular Students Enrolled in an Award Year Can Be Incarcerated

+  No More Than 50% of Courses in an Award Year Can Be Offered by Correspondence and Telecommunications Courses are Correspondence Courses if All Telecommunications Courses and Correspondence Courses Together Equal at Least 50% of All Courses Provided

+  No More Than 50% of Regular Students Enrolled in an Award Year Can Be Enrolled in Correspondence Courses
If schools meet all of the above qualifications then they can apply for Title IV funding if they are one of the following:

+  Institution of Higher Education

+  Public or Private Nonprofit Institution Located in U.S. or Its Territories

+  Proprietary Institution of Higher Education

+  Private, For-Profit Institution Located in U.S. or Its Territories

+  Postsecondary Vocational Institution

+  Public or Private Nonprofit Institution Located in U.S. or Its Territories
Schools that meet all of the above Title IV qualifications and are considered at least one of the above schools must offer at least one of the below programs to their admitted students.

+  Associateís, Bachelorís, Graduate or Professional Degree

+  At Least a Two-Year Program that is acceptable for full credit toward a Bachelorís Degree

+  At Least a One-Year Program that leads to a credential and prepares students for gainful employment in a Recognized Occupation

+  Proprietary Institution of Higher Education

+  All Eligible Programs must provide training for gainful employment in a recognized occupation and at least one of the following programs of study:

     -  At least 15-Week undergraduate program (600 Hours or 16 Semester or 24 Quarter Credits)

     -  At least 10-Week Program (300 Hours or 8 Semester or 12 Quarter Credits) at graduate level or that admits only students with at least an associateís degree

or

     -  At least 10-Week undergraduate program (300-599 Hours)  that admits students without associateís degree and that has verified completion and placement rates of at least 70%, has been in existence for at least one year, and meets certain program length.

Schools that meet the above institution and program qualifications can apply for Title IV status, which will allow admitted students to receive federal financial aid and Pell Grant funding.  Once schools have received Title IV status, they must continue to meet and abide by all rules and regulations.  Schools that do not follow these rules can expect to lose their Title IV status, which will not allow students to receive any form of federal financial aid.
Pell Grant Qualifications