In what condition is a student NOT eligible for Direct Loans?

A student is not eligible for Direct Loans if they are incarcerated because federal regulations explicitly state that individuals who are imprisoned and serving a sentence for a felony conviction are ineligible for federal student aid, including Direct Loans. This restriction is in place to ensure that federal financial resources are allocated to individuals who are able to engage in and benefit from educational programs.

Incarceration affects a student's ability to participate in academic and campus activities, which is a core expectation for maintaining eligibility for federal student aid. Conversely, having a high GPA, being enrolled in more than one institution, or being a part-time student does not automatically disqualify a student from receiving Direct Loans. These factors can influence a student's academic standing or financial aid packaging, but they do not meet the criteria for disqualification in the same way that incarceration does.