This guidance is specific to the 2023-24 award year and later.
It depends. An institution is not required to ask or investigate whether a student is incarcerated. However, under 34 CFR 668.16(b)(3) of the administrative capability regulations, if any institutional office or official knows of a student's incarceration, you must act on that information to ensure the student does not receive Title IV aid inappropriately. It would effectively constitute conflicting information which must be resolved before processing of Title IV aid could continue for the student.
Effective July 1, 2023, a confined or incarcerated individual is defined as someone who is serving a criminal sentence in a Federal, State, or local penitentiary, prison, jail, reformatory, work farm, juvenile justice facility, or other similar correctional institution. Refer to the regulations published in the October 28, 2022 Federal Register.
Incarcerated students are identified by an Incarcerated Applicant Flag indicator on the student’s Institutional Student Information Record (ISIR). The flag is set by:
If the student has been incorrectly flagged as incarcerated, the FAA may remove the Incarcerated Applicant Flag. The school will determine the documentation needed to confirm that the student is not incarcerated, which could include a written self-certification. See AskRegs Q&As, How Do We Resolve Comment Codes 405 And 406 When the Student May Have Been Incorrectly Identified As Incarcerated? and What Action Is Required When the Student Has Comment Code 281 But May Have Been Incorrectly Identified As Incarcerated? (Award Year: 2024-25)
See also GEN-23-05 and ED's Prison Education Program Questions and Answers website.
Student Aid Reference Desk: For additional information, try the Student Aid Reference Desk. It is a central hub of all the important financial aid resources you need with direct links to legislation, regulation, Dear Colleague Letters, and other ED and NASFAA references. It is updated on a rolling basis with the latest news and changes.
AskRegs Q&As represent NASFAA's understanding of regulatory and compliance issues. They are FOR INTERNAL USE ONLY. While NASFAA believes AskRegs Q&As are accurate and factual, they have not been reviewed or approved by the U.S. Department of Education (ED). If you should need written confirmation of AskRegs information for audit or program review purposes, please contact your ED School Participation Division. NASFAA shall not be liable for technical or editorial errors or omissions contained herein; nor for incidental or consequential damages resulting from the furnishing, performance, or use of this material.
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