Every year, millions of high school graduates make the decision to pursue higher education. Many of them would never have the option without financial aid. The government provides resources to colleges and universities for student in need of help for tuition and books. That resource is outlined in Title IV of the Higher Education Act of 1965. Schools and students, however, do have to fulfill eligibility requirements before these funds are available.
History
Lyndon B. Johnson enacted the Higher Education Act of 1965. It was created as a means for colleges and universities to recruit more students. The Act has been amended several times since 1965 to update language and the needs of colleges and students. In 1998, for example, Title IV was amended to eliminate any student with a criminal drug record. In 2003, several minority groups lobbied for changes in Title IV that would make it easier for minorities to pursue nontraditional avenues of education. Title IV continues to evolve to respond to the needs of society.
Considerations
Once a college or university becomes eligible under Title IV, several financial aid products are available. Schools work to offer these products through the Federal Direct Student Loan Program. The loans include the Perkins, Stafford PLUS and Consolidation Loans. Students can also receive private student loans. Eligibility for the student varies with the loan type. Some are subject to credit ratings while others are just based on need.
Warning
Schools must apply to the United States Department of Education in order to be eligible under Title IV. This can happen by acquiring accreditation from any number of regulatory and accrediting bodies including: American Academy of Liberal Education, Accrediting Bureau of Health Education Schools and the Commission on Message Therapy Accreditation. There are stipulations, however, with many of the accrediting bodies. Only freestanding law schools are eligible for Title IV with accreditation from the American Bar Association. Accreditation from the American Dietetic Association fulfills Title IV eligibility only for post baccalaureate dietetic internship programs. The Title IV stipulations are very specific.
Identification
In addition to the requirements under the Higher Education Act of 1965 and the requirements of the respective accreditation board, schools must also meet several other requirements in order to be in full compliance with Title IV eligibility. The college or university must me the respective state's licensing requirements for colleges and universities. It must also meet the standards of the institution that becomes the guarantor for the loans. Schools must also meet the rules outlined in the Family Educational Rights and Privacy Act.
Theories/Speculation
Education becomes a hot button issue every four years in the United States during presidential campaigns. Stakeholders will lobby the candidates during this time to make sure that Title IV is modified to meet their needs. Those modifications will require that colleges and universities stay on top of Title IV and its changes so that they may continue to offer financial resources as a tool of student recruitment.
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