Yes and no. If the university in question has a federal school code from the US Department of Education, then you may participate in the US Federal Financial Aid programme. But there is a catch. You may not do so for distance learning conducted by non-U.S. schools. It is limited to on-campus study only. This rule is relatively recent and very explicit. So, you cannot study at a Canadian or UK school from a distance and use U.S. Federal financial aid.

It's a pretty lame restriction, but it does help reveal that federal aid programs are designed to be a subsidy to American schools, not American students.

-=Steve=-

SteveFoerster:

It's a pretty lame restriction, but it does help reveal that federal aid programs are designed to be a subsidy to American schools, not American students.

-=Steve=-

No, it does not. American students studying abroad at schools participating in Title IV financial aid may apply for Pell Grants, Stafford Loans, etc. The restrictions only apply to U.S.-based students studying with foreign schools via distance learning.

Rather, the roots of this lie in the diploma mill problem. Instead of taking a nuanced and detailed approach by implementing processes that would ensure students took degrees only from recognized (US accredited equivalent) universities, the US Dept of Ed decided to avoid funding diploma mill activities by excluding all foreign distance learning study. Much less conspiratorial--and much more fact-based--than the comment quoted above.

Lester:

No, it does not. American students studying abroad at schools participating in Title IV financial aid may apply for Pell Grants, Stafford Loans, etc. The restrictions only apply to U.S.-based students studying with foreign schools via distance learning.

Foreign schools that apply to participate in the U.S. federal financial aid program are vetted.  If the reason were simply to eliminate degree mills, that could happen as part of that process; a blanket prohibition on foreign-based distance learning would be unnecessary. No one thinks that Leicester, London External, and Athabasca are degree mills.  If the objective is to maximize opportunity for American students, then why can't they participate?

-=Steve=-

Cajun:

Good point Steve, I think making the argument that denying title IV status to U of London on the basis of protecting money from going to mills is a bit of an overkill at best.

I've been thinking about Lester's argument a little more, and there's also an explanation that's sort of in the middle.  It's possible the regulation/legislation really was written with degree mills in mind, but that it was just so poorly written that it shoots that fly with a cannonball.  That's an explanation that would fit the old saying that one shouldn't ascribe to malice that which is adequately explained by incompetence....

-=Steve=-

SteveFoerster:

Cajun:

Good point Steve, I think making the argument that denying title IV status to U of London on the basis of protecting money from going to mills is a bit of an overkill at best.

I've been thinking about Lester's argument a little more, and there's also an explanation that's sort of in the middle.  It's possible the regulation/legislation really was written with degree mills in mind, but that it was just so poorly written that it shoots that fly with a cannonball.  That's an explanation that would fit the old saying that one shouldn't ascribe to malice that which is adequately explained by incompetence....

-=Steve=-

Righto.