Many students and their parents rely on financial aid to pay for a college education. All college students can submit the free application for federal student aid, commonly known as FAFSA, regardless of financial profile. Having your request for financial aid denied by your school, however, could put your pursuit of a college degree on hold temporarily or indefinitely.
Deadlines
Some colleges accept FAFSA and internal financial aid applications on a rolling basis, while others have specific deadlines for financial aid consideration. Your school could deny your financial aid request if you fail to apply by the deadline. The United States Department of Education posts on its website a list of FAFSA deadlines, which vary by state. You should also confirm financial aid deadlines with the college financial aid office, even if you have applied but have not yet been accepted.
Title IV Violation
Title IV of the Higher Education Act of 1965, as amended in 1998, requires students receiving financial aid to attend classes to retain financial aid eligibility. Your financial aid request could be denied for future semesters if you received financial aid for previous semesters and withdrew from school before completing at least 60 percent of the semester. Some colleges allow you to appeal financial aid denial based on Title IV violations in cases where circumstances beyond your control caused you to withdraw from school.
Verification
The Department of Education conducts FAFSA audits on a random basis to identify applicant data inconsistencies. Such audits could result in your financial aid award being increased or reduced, but you must comply with the audit and provide the requested documentation to receive your financial aid. Failure to provide tax returns and other financial documents to your college on time could result in your financial aid award being cancelled.
Credit
Parents of undergraduate students and graduate students sometimes apply for Department of Education-affiliated, credit-based loans when government-subsidized financial aid options have been exhausted. In such cases, having poor credit, as defined by your lender, could cause your credit-based student loan application to be turned down. Remedies for such financial aid denial include applying for merit-based scholarships, attending the least-expensive regionally accredited college or borrowing funds from a parent's retirement account.
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