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School Eligibility

Summary for Obtaining United States Department of Education Approval to Participate in Federal Title IV Programs in Order to Participate in the American Education Services (AES) Federal Family Education Loan Programs (FFELP)

A fundamental requirement for participation in the AES FFELP is that a school be approved by the U.S. Department of Education (CFR) to participate in Federal Title IV Programs. To participate in FFELP, a school must establish its eligibility under the Higher Education Act (HEA) of 1965, as amended, and enter into a Program Participation Agreement (PPA) with USDE.

In order to become a Title IV approved institution, a school must:

  1. Apply to CFR and meet certain eligibility requirements (most basically involving state licensure, institutional accreditation by a Nationally Recognized Accrediting Agency, and various standards of financial responsibility and administrative capability).
  2. Ensure individual programs of study meet certain requirements in order to qualify a student enrolled in that program for Title IV funding.

The Federal Student Financial Aid Handbook provides further details into institutional and program of study requirements. You may request a complete copy of this Handbook, free of charge, by calling USDE toll-free: 1-800-433-3243. Also, you may view the latest version of The Federal Student Financial Aid Handbook online at the following World Wide Web address:

In addition to meeting the terms and conditions of its Program Participation Agreement with the Department, a participating school must also comply with the following:

  • 34 CFR Part 99 (Family Educational Rights and Privacy), 34 CFR Part 600 (Institutional Eligibility), 34 CFR Part 668 (General Provisions), and 34 CFR Part 682 (FFELP) - as well as other Department directives.
  • State licensing requirements
  • Guarantor policies, procedures, and requirements
  • Accrediting agency requirements
  • All other related requirements for schools, as specified in the Higher Education Act of 1965, as amended.

A school that wishes to apply for participation should write or call the Institutional Participation Oversight Service, Accreditation and Eligibility Determination Division of USDE at the following address:

U.S. Department of Education/IPOS/AEDD
Initial Participation Branch

ROB-3, 3915 7th & D Streets, S.W.
Washington, DC 20202-5244
(202) 377-3173 - telephone
(202) 275-3486 - fax

Once a school has established its Title IV eligibility and been approved by USDE to participate in the FFELP, the school should contact Institution Eligibility to request participation in the AES administered FFEL Program.

Institution Eligibility
Guaranty Compliance Services

1200 North Seventh Street
Harrisburg, PA 17102-1444
(717) 720-2740 - telephone
(717) 720-3933 - fax - email