When the U.S. Department of Education processes a FAFSA, the processor may place a C code on the applicant's Student Aid Report (SAR). This code acts as an alert for the student and the Financial Aid Office to indicate that the student cannot receive aid until a given issue is resolved.
Common C Codes
If you are notified that you are not entitled to Title IV student loans because your application for financial aid states that you are in default, usually, if you make six consecutive payments on your defaulted student loan debt, the lender will provide you with a default clearance letter. You can then forward it to the Purdue Global Financial Aid Office. After our review and approval, you will regain eligibility to receive Title IV funds.
You can check the status of your file and the history of your student loans by visiting the National Student Loan Data System (NSLDS).
If you have already paid your loans but your status still shows you are in default, contact your lender or the Department of Education at 800-433-3243 (Toll Free) and ask them to provide you with your default clearance letter.
An overpayment means that you received grant funds in excess of your eligibility. When the NSLDS indicates that you have received at least one overpayment of federal student aid funds, you are required to repay the excess. You are not eligible to receive any federal student aid until your overpayment is resolved.
To resolve a Pell overpayment issue, call the Department of Education at 800-621-3115 (Toll Free). They will provide you with options to clear this issue. Once your overpayment is cleared, the Department of Education will provide you with an overpayment clearance letter that you can submit to the Purdue Global Financial Aid Office. After our review and approval, you will be again entitled to receive Title IV funds.
According to your school level (graduate or undergraduate), there is an established amount of funds you can borrow during a lifetime. If you are close to reaching the limit or have exceeded it, you might not be able to borrow more to help you cover the cost of your tuition.
You can check the status of your file and the history of your student loans by visiting the NSLDS. If you have exceeded your loan limit, we have other options available to help you cover the cost of your tuition. Ask your Financial Aid Advisor about alternative loan options to fund your education.
Permanently Discharged Student Loans
Students who in the past had their loans discharged for medical conditions are not entitled to receive Title IV aid unless an official doctor’s certification is submitted, which states that the student has the ability to engage in substantial gainful activity, along with a signed personal statement, which states that as a student, you are aware that the new FSA loan cannot be discharged later for any present impairment unless it deteriorates so that you are again totally or permanently disabled.