Institutional eligibility

The institution applies to the Department, demonstrates state authorization and accreditation, and signs the Program Participation Agreement. Once certified, it may disburse Title IV aid to eligible students in eligible programs. Recertification occurs periodically. Material changes are reported. If eligibility is lost, disbursements stop and teach-out or closed-school processes may begin.

Example: a new online university obtains state authorization, secures regional accreditation, and executes a Program Participation Agreement. It is institutionally eligible. Students in its approved bachelor’s programs may then receive Pell Grants and Direct Loans if they individually qualify.

Program eligibility applies to specific academic offerings. Student eligibility depends on citizenship, need, enrollment, and SAP. Accreditation is a prerequisite for institutional eligibility but is granted by an accreditor, not by the Department. State authorization is likewise a prerequisite.

Assuming accreditation alone confers Title IV eligibility. Continuing to disburse aid after accreditation or state authorization lapses. Confusing a provisional certification with full, unrestricted eligibility.