Effect of Loan Status on Student Aid Eligibility

Loan Status NSLDS Code Eligible for SFA Funds*

In school, DA-Deferred Yes

grace period, FB-Forbearance
ID-In school or grace
period
RP-In repayment
Paid DP-Default, then paid in full Yes
PC-Paid in full through For consolidation, it does not matter
consolidation what type of consolidation loan the
PF-Paid in full borrower received, nor whether loan
was in default before consolidation.
Lost guarantee UI-Uninsured, Unreinsured Yes
It does not matter if the loan was in
default.
Canceled or BC-No default, bankruptcy Yes
discharged discharge For a borrower who had a
CA-Canceled disability cancellation to receive
DF-Default, false certification new loans, the borrower must
discharge have a doctor’s certification that
DG-Default, false certification his or her condition has
(ability to benefit) discharge improved and sign a statement
DI-Disability indicating that he or she is
DJ-Default, discharged by judicial aware that the new loan cannot
ruling be canceled on the basis of any
DK-Default, bankruptcy discharge present impairment unless the
DN-Default, closed school condition deteriorates.
discharge
DS-Default, disability cancellation
EA-False certification (ability to
benefit) discharge
EC-Closed school discharge
EF-Loan discharged for fraudulent
disbursement
EJ-Court ordered write-off
OD-Default, bankruptcy discharge
No default, BK-No prior default, active Yes
bankruptcy bankruptcy claim Loan was not in default and has not
filing been discharged.
Default DL-Defaulted, in litigation No
DT-Defaulted, collection
terminated
DU-Defaulted, unresolved
Default, DB-Defaulted, active bankruptcy No, unless debtor can show that
bankruptcy claim loan is dischargeable.
filing DO-Defaulted, active bankruptcy
claim
Default, DC-Defaulted, compromised Yes
compromise Compromise is recognized as
payment in full.
Default, DW-Defaulted, write-off No, unless debtor reaffirms loan and
written-off makes satisfactory repayment
arrangements or repays loan in full.
Default, DX-Defaulted, satisfactory Yes, if borrower continues to comply
satisfactory arrangements, and six with repayment plan or is granted
repayment consecutive payments forbearance.
arrangement

*Federal Perkins Loan regulations allow the financial aid administrator to deny eligibility for additional loans
if he or she has evidence that the applicant is unwilling to repay the loan.

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