Federal Holds | Student Financial Services

Understanding Federal Holds

When a student submits a FAFSA, their information is compared to data in several federal databases to confirm eligibility requirements. If any checks fail, the student is not eligible for federal aid until the conflict is resolved. Examples of federal holds include verification of citizenship, Social Security number, veteran status and loan status.

Your FAFSA information is sent to:

  • The Social Security Administration to confirm citizenship and that the Social Security number, name and date of birth match
  • The Selective Service System to confirm that males have registered as required
  • The Department of Homeland Security to confirm eligible non-citizen status
  • The National Student Loan Data System to look for aid overpayments, loan defaults or discharges, bankruptcies, aggregate and lifetime aid limit issues
  • The Department of Veteran Affairs to confirm veteran status
  • The Department of Defense to confirm active military duty status

If any of these departments or administrations do not confirm eligibility, Student Financial Services will assign a tracking code and notify the student of what documentation is required to clear the hold. Notifications will be sent to the student’s UM e-mail address until the requirement is reviewed and satisfied.

Examples of documents requested to be reviewed for C flags OR conflicts include: 

  • If notified of a Social Security Administration conflict, the student will be required to visit the Social Security Administration office and submit their documentation there. Once cleared with the Social Security Administration, they must resubmit a copy of their Social Security card to our office. If the card will take some time to be processed, the student can also submit documentation such as a printout from the Social Security Administration showing that changes to name, date of birth, or Social Security number are in process. 
  • If an eligible non-citizen does not clear the Department of Homeland Security, they can bring in original documents such as a passport or an alien registration card. Photocopies and faxes of these documents are not acceptable. 

 

Clearing Common Federal Holds

  • All males who are U.S. citizens are required to register with Selective Service upon turning 18. Once a male turns 26 they are no longer able to register. Eligible non-citizens are also required to register if they were under the age of 26 when they were granted eligible non-citizen status.

    If a male student fails to clear this check, they will need to provide proof of registration. If they cannot provide that, and are 26 or older, they will need to request a letter of determination from the Selective Service System. The letter is then submitted to Student Financial Services, along with a written explanation as to why they did not register within the required timeframe. A decision will then be made by staff in Student Financial Services as to whether the student will be eligible for federal aid.

    Males who are at least 18 are given the opportunity to register for Selective Service on the FAFSA.

  • Not all U.S. citizens have their citizenship status recorded in the Social Security Administration's database. If a student does not clear this check, they will be directed to provide proof of citizenship to their local Social Security office. Once their records have been updated there, they will need to notify Student Financial Services so that the match can be performed again, clearing the hold.

    Individuals who do not clear the eligible non-citizen checks will need to bring proof of their status to Student Financial Services. Original documents (e.g. passport, alien registration card) are required. Photocopies or faxes are not accepted.

  • If a student was in default on one or more student loans, they typically have three options to clear their default:
    1. They can pay their loan in full.
    2. They can consolidate their student loan.
    3. They can make six consecutive months of loan payments at the amount agreed upon with the loan servicer. This reinstates aid eligibility but does not clear the default. 

    Loan rehabilitation also clears the default. Like Option Three above, it requires on-time payment of an agreed upon amount with the loan servicer but in this case it is nine months and must be requested in advanced. 

    Once a student has exercised one of the options above to clear their default status they must provide documentation from the loan servicer indicating that the default has been cleared and is eligible for federal student aid to be reinstated. Many students have loan payments due to multiple servicers. All loans must be in good standing. To obtain a list of student loans and loan servicers with contact information and the status of each loan,  using your FSA ID.

  • Students convicted of sale or possession of a drug while receiving federal financial aid are ineligible for federal aid for a set period of time unless they are able to document that they have completed an approved drug rehabilitation program that includes at least two random drug tests.

    To have aid eligibility reinstated, Student Financial Services must receive documentation from the rehabilitation facility indicating that the student completed the program and was subject to the administration of two random drug tests.

    Students who are not able to complete an approved rehabilitation program can have their aid eligibility reinstated. They must provide documentation showing the effective date of the conviction after they have completed the period of aid suspension.