Why would a school not be eligible for FAFSA?

Question

I am attending a school and they say its because they are "private". Or is it because they are "for profit"?

Any other reasons?

Answer 1

Found-1 FTW again!  Great answer.

Typically a school that is not a Title IV eligible school has either proven to have problems in the past (having it revoked), or does not meet the accreditation standards to qualify.  I would avoid any school in this situation.

Answer 2

There are several reasons a school won't be eligible for fafsa.  But just because a school is "private" or "for-profit" won't keep them from being an approved school.  

Couple of reasons why they might not be are...  

1. Schools have to have been open a couple of years before they are eligible to be an approved Dept of Ed school.  It could be they haven't been around that long and have no proven record of success.

2.  some schools have been approved Dept of Ed schools in the past but had their eligibility pulled or taken away from them. Usually this happens because the schools default rate was too high.  (Meaning, people were taking out federal loans and then not paying them back. Who knows why... could be, the school didn't stress the students were actually taking out loans, or maybe the degrees and certificates they were earning were not marketable after graduation).  Another reason for this loss could be illegal (or questionable) activity regarding the handling of federal funds.    

3. Some programs are simply not Dept of Ed financial aid eligible -no matter what.  Short truck driver training programs, alternate medicine programs, short term computer classes, even most massage therapy programs don't qualify.  You have to be working on a recognized certificate or degree that is a certain length of time.  A lot of the schools popping uo nowdays are run by an individual with an interest but don't want to (or are unable to) jump through all the processes to be recognized by the Deptment of Education.

Be Aware:

Lots of "for profit" schools can get FAFSA, every cosmetology program not at a state sponsored Vocational school is for profit.  The University of Phoenix is also a "for profit" school.  Private schools like Juliart, Harvard, Yale are eligible for FAFSA.

If you are considering attending a school that does not accept FAFSA, I would RUN (not walk) to another school that is.  They are not recognized for a reason, and not a single one of them is in your favor.