Once in a while I come across student who asks me why their school cannot receive financial aid. More often than not it will be because their school is not Title IV Certified. Only schools that are Title IV Certified are eligible to participate in federal student financial assistance programs. This includes both loan programs and grants.

Title IV Certification is not the same as accreditation. Though all Title IV Certified schools are accredited, not all accredited schools are title IV certified. In order to qualify for Title IV Certification a school must be licensed by the state where it is located and accredited by a nationally recognized accrediting agency. Eligible schools are public or private nonprofit institutions of higher education, private for-profit institutions of higher education, and public or private nonprofit postsecondary vocational institutions.

There are also other qualifications as school must meet to become Title IV Certified. A few examples are that the school can never have filed for bankruptcy protection, no more than 50% or courses in an award year can be offered by correspondence, and no more than 25% of the regular students enrolled in an award year can be incarcerated.

Title IV Certification techniquely only applies to federal funds however many scholarship benefactors and private loan lenders will only disburse funds to Title IV Certified schools as well. When applying to college it is important to choose schools that are Title IV certified if you plan on receiving any kind of financial aid.