Many early college entrants and their parents run into roadblocks when seeking federal student aid. However, families and students should not give up. Early entrance college students are eligible for federal aid as long as specific requirements are met. Because college financial aid advisors do not deal with early entrants often, they may need to be informed about specific rules that apply to these students.

WHO IS NOT QUALIFIED

• Students who are attending college courses for enrichment, but are not seeking a degree are NOT eligible for federal aid.
  
  
• Students who are enrolled in high school -- essentially any student actively seeking a high school diploma -- are NOT eligible for federal aid. This includes any students receiving high school credit for the college courses they are taking. However, this restriction does not include students who are seeking a GED. Students enrolled in both college courses and a GED program are eligible for federal aid, but federal aid money cannot be used for GED programs.

WHO IS QUALIFIED
Federal student aid is offered only to "regular students," which the Department of Education defines as "one who is enrolled in an institution to obtain a degree or certificate." College students who have applied to and been accepted by a college are considered matriculated and fall under this definition.

Having a high school diploma is NOT a requirement for receiving federal aid. Students without a diploma are eligible for federal student aid if they meet other specific requirements established by the Department of Education. Unfortunately, the information regarding those exceptions is not readily available.

Although the requirements are alluded to, specific descriptions are not found on the FAFSA Web site, or in the Student Guide to federal financial aid. The Federal Student Aid Handbook, which is published by the federal government for financial aid professionals, includes detailed information about the requirements for eligibility. That document is available online at http://www.ifap.ed.gov/. The relevant section is "School-Determined Requirements" in Chapter One.

According to the handbook, there are two ways for students to establish federal financial aid eligibility without a high school diploma: 1) by establishing high school diploma equivalence or 2) under the Education Department's Ability-to-Benefit provision. Below is an outline of your options:

1. DIPLOMA EQUIVALENCE
   The Department of Education recognizes three equivalents for students who do not have a high school diploma or a GED.
   1. If a student has already completed a post-secondary program of at least two years' length, his or her transcript is acceptable, but only if the program is acceptable for full credit toward a bachelor's degree.
   2. Students who have completed a home study program approved by their home state can submit their certificate of completion.
   3. Students enrolling in a program leading to an associate degree or higher can submit documentation of academic excellence in high school and meet the requirements for admission to the college.

   If a student does not meet the one of the three requirements for diploma equivalence, another option is...

2. ABILITY-TO-BENEFIT
   Put simply, any student who passes an Education Department-approved test or meets Education Department-approved state standards is eligible for federal financial aid under the Ability-to-Benefit provision. The Ability-to-Benefit rules (Code of Federal Regulations (CFR) 34, Part 668, Subpart J www.access.gpo.gov/nara/cfr/waisidx_03/34cfr668_03.html) are independent from the admission requirements to the college or university.

   Unfortunately, there is almost no crossover between the approved tests and the popular college admission tests required by most schools. This means students who are applying under the Ability-to-Benefit rules likely will have to seek out an independent testing facility that offers one of the approved tests. Such facilities may be available at some colleges and universities, but they MUST be independent from the admissions and financial aid offices at those institutions.

Approved Tests as of May 2009

Permission Statement

This article is provided as a service of the Davidson Institute for Talent Development, a 501(c)3 nonprofit dedicated to supporting profoundly gifted young people 18 and under. To learn more about the Davidson Institute’s programs, please visit www.DavidsonGifted.org.