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IFAP
FSA Information for Financial Aid Professionals
U.S. Department of Education

Citations: (R)652.43
AsOfDate: 12/31/95

What are the consequences of a Scholar's

noncompliance with the scholarship eligibility requirements
in Secs. 652.40 or 652.42?

(a)(1) Except as provided in paragraph (b) of this

section, if an institution of higher education finds that a Scholar
fails to meet the requirements of Secs. 652.40 or 652.42 within an
award year, the institution shall suspend the Scholar's eligibility to
receive further scholarships, or scholarship proceeds.

(2) A suspension of a Scholar's eligibility for failure to

meet the requirements of Secs. 652.40 or 652.42 must remain in
effect until the Scholar is able to demonstrate to the satisfaction
of the institution that he or she is in compliance with all applicable
scholarship eligibility requirements, including renewal
requirements in Sec. 652.42 and reinstatement requirements in
Sec. 652.44.

(3) If the total period of suspension exceeds 12 months,

the Scholar's eligibility for NSSP scholarships shall be terminated.

(b) The Secretary may waive the full-time attendance

requirement in Sec. 652.40 and Sec. 652.42 for periods during
which the institution determines that unusual circumstances have
caused the Scholar's noncompliance with the full-time attendance
requirement of Sec. 652.42(a) and that suspension of scholarship
eligibility would cause a Scholar undue hardship.

(c) If a Scholar's full-time attendance requirement is

waived under paragraph (b) of this section, he or she may
continue to receive a scholarship payment. The institution shall
prorate the payment according to the Scholar's enrollment status
for the academic period during which he or she continues to be
enrolled on a part-time basis but remains otherwise eligible for the
award. For example, if a Scholar for whom the full-time enrollment
requirement is waived by the Secretary is enrolled as a half-time
student for one semester, he or she is eligible to receive one-half
of the scholarship payment for a full-time student for that
semester. Therefore, if the institution makes disbursements in
equal amounts, the Scholar would receive one-quarter of his or
her scholarship during that semester, which would count as one-fourth of a
year for purposes of the four-year limit.

(Authority: 20 U.S.C. 5384)