financial aid and overseas distance learning

I know there was a discussion about whether or not we can use USA financial aid when attending a college via distance learning that is outside the USA. There was a quote posted by someone pulled from somewhere stating that as of 2006, you couldn't use financial aid on distance learning programs outside the USA. I wasn't about to dump my master's degree plans without serious confirmation.

I sought out the source of the quote- I couldn't find it easily, and so I simply sent the federal financial aid office an email. Their initial email reply to me wasn't specific on distance learning, so I sent a follow up. THIS reply is relevant, and VERY good news!

<<Thank you for your additional inquiry about federal student aid.

In general, a student enrolled in a distance education course may receive federal student aid if the course is part of an eligible program at an eligible school. We suggest you contact the school for more information.

If you have additional questions about financial aid, application procedures, eligibility formulas or other student aid topics, you can contact our Federal Student Aid Information Center (FSAIC) at 1-800-4-FED-AID (1-800-433-3243) or 319-337-5665. One of our customer service representatives will gladly assist you.

We hope this information is helpful.

E-Mail Unit
Student Aid on the Web
www.studentaid.ed.gov
Federal Student Aid>>

Anyone seeking financial aid outside the USA will need to find out what "in general" actually means, as well as if their college is eligible- but it looks possible to me!

 

I think it totally depends on the school and if they have worked it - Grenoble did have soemone helping work these issues and many were on it.

 

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Yes, I think so too. I am digging now, but I think University of Adelaide is a "go" if I can get this confirmed.

 

You might be thinking of this old thread: http://forums.degreeinfo.com/showthread.php?=s&threadid=24805 .

 

This might actually be in regard to my thread about the University of Leicester in the UK. I found this information on their web site:

"A note to students in the U.S. regarding financial aid: The University of Leicester is approved for Title IV participation (federal financial aid, i.e. student loans). However, current U.S. Department of Education rules prevent distance learning students attending non-U.S. schools from participating. If you have student loans from previous degree programs, you will be able to defer them during your CLMS program."

An email from University of Leicester also confirmed that I am not eligible for student aid as a distance learning student.

 

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TCord- I remember reading about your post... so, maybe Leicester isn't an eligible as an institution, but not because of the distance learning aspect? I don't know??

 

As Leicester's (the CLMS, specifically) U.S. representative, I've been down this road. The university has a school code, and its American students on campus may use federal financial aid. But the USDoE prohibits its use for distance learning programs at foreign schools. Period. Even student loan lenders, like Sallie Mae, may not realize this, but universities like Leicester are task with ensuring it doesn't happen.

According to the Federal Student Handbook, Chapter 8, page 2-98, "A program offered by a foreign school in whole or in part by telecommunications, by correspondence, or as a direct assessment program is not an eligible program."

This is based on the federal regulation: 34 CFR 600.51(d). I checked that reference directly to be sure. Sadly, the language is unambiguous.

Finally, I called the Department of Education, who confirmed this restriction and cited the same sources.

Fini.

(NB: Students with prior student loans may still get approval to defer their payback while enrolled in eligible schools, like the University of Leicester.)

 

Grenoble appears to have success with Federal aid for American's in the DBA program (see this link (PDF). It may be because of the partnership with Ol Miss and/or the residencies in the the US?

 

No, there was no partnership during my cohort and we had it available. Not sure how they did it : Magic

 

Hi Jennifer,

This was also discussed in this thread: http://forums.degreeinfo.com/showthread.php?t=28088. The regulation to which Rich is refering, became effective in July 2006, as part of the Deficit Reduction Act of 2005.

Tom

 

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Ok, so whats with their conflicting answer to me??

 

I guess the dinosaurs who created that federal regulation need to be ushered in to the 21st century where learning by telecommunication and other means, and beyond U.S. shores, has started inching its way into mainstream education.

But I guess if, within the educational system itself, we have dinosaurs and dinosaur institutions which have neither an open mind nor the competence to deliver technologically based and technologically enhanced education, what can we expect from dinosaur lawmakers who don't know anything about the developing educational system itself ...

 

I think it is unfortunate that U.S. law prohibits this. I understand that they may want American dollars to go to American institutions, but isolationism is never a good thing. Like it or not, we are becoming a global society.

There are private loan programs for U.S. students who wish to study overseas via distance learning or otherwise, but they are based upon having stellar credit.

 

Aldrin, essentially, what the "dinosaur lawmakers" are saying is that:

"We will support your goal of receiving an international education provided that it is NOT distance education because we don't consider distance education to be a real and credible kind of education. And we will impose our belief on all of you, whether you like it or not, and not respect your desire of adding an international dimension to your education, by making the use of American dollars for that inferior kind of education called 'distance education' illegal. Yes, expect us not to pay for that crap of diploma you're going to be earning, even if it's technically your money since you're paying us back for your loans later, anyway. We just want to make sure our bias against distance learning is institutionalized as law."

Since federal regulations allow payments to approved foreign institutions as long as the education is "traditional," then it's distance learning that's an issue, not the fact that money is going to a non-US school.

Welcome to the 21st century, indeed!

 

I'm still not accepting "no" for an answer. After contacting University of Adelaide (Australia) I was told that they absolutely, positively, beyond a doubt have US students using US financial aid programs in my program (MA Gastronomy via distance). There are, however, two types of grants you can not use. One is the Pell Grant, and one other that I didn't recognize. Both the federal subsidized and unsubsidized govt. student loans are part of the financial aid package.
I have filled out my Financial aid forms, and then today did the entrance quiz thing- so as for this moment, my financial aid is being processed. I will update the board.

 

They must be slipping through undetected. Here is a link to the Federal Regulation Rich referred to. FFEL includes four components: Stafford Loan, Unsubsidized Stafford Loan, PLUS (Parent Loan for Undergraduate Students) Loan, and Consolidation Loan. I wonder what happens, if anything, if one of them gets "caught". I hate to think they would call the loan due.

 

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I'm not sure how one "slips" through. On my paperwork, I have to identify the college(s) that I want my financial aid for. I again had to do so on the entrance quiz thing (Mapping your future) as well. I accept that it might get denied, but I don't think you can "slip" through.

 

Yes, one can, especially since the schools in question offer both residential and DL. It is the responsibility of the school to follow this rule. The lender, for example, wouldn't know. So if the school wasn't reporting in FAFSA that you were studying via DL, you could get away with it. But if the school gets caught (say, through an audit), they could lose their eligibility.

 

Exactly. That is my understanding as well (for what its worth). The schools that are operating in this fashion are taking a risk.

Tom

P.S. For everyone here who stated that the federal govt. doesn't care about or understand DL, you are mistaken. The Deficit Reduction Act of 2005 also eliminated the "50% rule" which previously disallowed most DL-only schools (or those schools that offered more than 50% of their courses online) from participating in Title IV financial aid. As soon as this rule was lifted, Excelsior, APU and other began offering Title IV to their DL students.

It is not often that I defend the federal govt. (especially this administration), but in this case it is warranted.

 

Notice that in the feds reply to you, they do not refer to foreign DL schools, only DL schools in a generic sense. They also add the caveat if the course is part of an eligible program at an eligible school. You gotta love bureaucrats.

You might as well give it a shot. If the school gets into hot water, it is on them, not you. Of course, this is a bit unethical, but I am not one to judge (seriously, I mean that).

Good luck in whatever path you decide to head down.

Cheers!
Tom