5 things you need to know about Title IV of the Higher Education Act of 1965 (HEA)

By Bridget McGuire, September 13, 2022 

Title IV of the Higher Education Act of 1965 (HEA) is the statute that authorizes the U.S. government to provide financial assistance to eligible students pursuing higher education. Funds are disbursed directly to accredited institutions, which can then be used for school fees, housing, and other approved expenses. 

Here are 5 things to know about Title IV, how it impacts your educational institution, and how a financial aid-servicing agency can help your school create a postsecondary education experience coveted by students nationwide and even internationally. 

1. Your Title IV Designation Matters 

The highest-performing students look almost exclusively for schools with a Title IV designation. This means an institution is accredited by the U.S. Department of Education and provides a quality degree program. Fortune 500 companies and other top enterprises that scout new graduates for entry-level positions also look for students who have degrees from Title IV schools. 

2. You Must Meet Specific Criteria for Title IV Status 

Schools interested in receiving Title IV status must meet a number of different criteria in order to be considered eligible to be part of federal student aid like Pell Grants, TEACH grants, and Direct PLUS and Direct Graduate PLUS Loans. 

Institutions of Higher Education (IHEs) must: 

∙ Be licensed to conduct business within the state the school physically resides ∙ Provide at minimum one (1) eligible education program that either prepares the student for a degree or a career within a recognized occupational field 

∙ Derive at minimum 10% of the institution’s total revenue from non-Title IV funding ∙ Have fewer than 50% of classes via correspondence and/or have fewer than 50% of students attending classes via correspondence 

∙ Meet program integrity requirements 

3. You Must Disburse Federal Funds to Students According to HEA Criteria 

The Higher Education Act also sets forth guidelines that IHEs must adhere to when disbursing federal aid to students. For example, institutions must inform students how much of their federal aid is in the form of an unsubsidized loan and how much is subsidized. They must also follow regulations on how many disbursements students receive per semester or per year. 

4. Title IV Funds Must Be Used For Eligible Expenses 

Title IV funds must be applied to eligible expenses, such as tuition costs, school fees, and on-campus housing. Only in certain instances may the funds be used for used for variable in direct expenses.  

5. You Must Maintain Eligibility to Keep Your Title IV Status

Your school will need to maintain its eligibility for as long as you wish to keep your Title IV status. If at any time you do not meet one or more criteria, your status may be placed in probation, suspended or revoked and you may no longer receive Title IV funding. 

Get Help Navigating Federal Funding With a Financial Aid-Servicing Agency 

FA Solutions, LLC is an established financial aid-servicing agency that aligns with Federal Government to help students access quality education. We recommend these best practices for financial aid directors and staff. Contact us today to learn more about applying for a Title IV designation at 727-300-6336.