Direct	Loans	at	Multiple	Schools
A	student	who	is	concurrently	enrolled	and	eligible	at	more	than	one	school	may	receive	Direct	Loans	at	each	school.	If
the	student	is	receiving	Direct	Subsidized	Loans	or	Direct	Unsubsidized	Loans,	the	schools	that	the	student	is	attending
are	responsible	for	coordinating	to	make	sure	that	the	total	amount	of	the	loans	the	student	receives	does	not	exceed	the
applicable	annual	or	aggregate	loan	limit.	In	addition,	the	schools	must	ensure	that	there	is	no	duplication	of	non-
institutional	costs	when	determining	the	student9s	COA.	Note	that	in	the	situation	where	a	student	is	concurrently	enrolled
and	eligible	at	more	than	one	school,	which	is	different	than	the	consortium	arrangements	discussed	in	
Volume	2,	Chapter
2,	loan	funds	awarded	at	one	school	are	not	to	be	included	as	OFA	by	any	other	school	the	student	is	attending	when
determining	the	student9s	loan	eligibility	for	the	same	period.
Exceptions	to	the	<Regular	Student=	Requirement	for	Direct	Loans
As	explained	in	Volume	1,	Chapter	1,	one	of	the	eligibility	requirements	for	a	student	to	receive	Title	IV	aid	is	that	the
student	must	be	enrolled	at	an	eligible	school	for	the	purpose	of	obtaining	a	degree	or	certificate	offered	by	the	school.
Such	a	student	is	known	as	a	<regular	student.=	However,	there	are	two	limited	exceptions	to	this	requirement	for	Direct
Loans:	preparatory	coursework	and	teacher	certification	coursework.
Preparatory	Coursework
A	student	may	receive	a	Direct	Subsidized	Loan	or	Direct	Unsubsidized	Loan	(or	a	parent	may	receive	a	Direct	PLUS	Loan
on	behalf	of	a	dependent	student)	for	preparatory	coursework	that	the	school	has	documented	is	necessary	for	the
student	to	enroll	in	an	eligible	program.	The	preparatory	courses	must	be	offered	as	part	of	an	eligible	program	offered	by
the	school,	though	the	student	does	not	have	to	be	enrolled	in	that	program.	A	school	may	not	award	Direct	Loans	for
standalone	courses	that	do	not	count	towards	an	eligible	program	and	exist	solely	to	serve	as	preparatory	coursework.
A	student	who	is	enrolled	at	least	half	time	in	preparatory	coursework	as	described	above	is	eligible	to	receive	loans	for	a
maximum	of	one	consecutive	12-month	period	(not	per	program)	beginning	on	the	first	day	of	the	loan	period.	If	the
consecutive	12-month	period	of	preparatory	coursework	spans	more	than	one	academic	year,	the	student	may	receive
more	than	one	annual	loan	limit.
To	be	eligible	for	loans	under	this	exception,	the	student	must	be	taking	classes	that	are	a	prerequisite	for	admission.	A
student	who	is	only	taking	courses	to	raise	their	grade-point	average	in	order	to	be	admitted	does	not	qualify.
Preparatory	Coursework	at	a	Different	School
Regular	Student
34	CFR	600.2
Preparatory	Coursework
34	CFR	668.32(a)(1)(ii)
34	CFR	685.203(a)(6)	and	(c)(2)(vi)
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