Schools, NSLDS Work Together to Monitor Transfer Students' Status, Eligibility

The National Student Loan Data System has procedures for monitoring and reporting transfer students. The school to which a student is transferring must obtain a financial-aid history for the transfer student to ensure the student’s eligibility for Federal Family Education Loan Program funds. In addition, to help NSLDS assemble and provide a report to the school regarding the student's financial-aid history, the school must send to NSLDS specific information regarding its transfer students, and it must monitor the financial-aid status of those students for any future updates.

Schools can update NSLDS regarding their transfer students through one of the following procedures:

• Create a list of transfer students on the NSLDS Web site.
• Send a list of the transfer students electronically to NSLDS.

The 2004-2005 Federal Student Aid Handbook, Volume 1, page 46, provides detailed information about the NSLDS transfer-student process and its role in the school's delivery of FFELP funds.

In order to comply with federal requirements, USA Funds^® encourages schools to:

• Participate in the NSLDS transfer-student process.
• Assess each transfer student's eligibility for federal student aid.
• Document the process by which the schools perform the necessary searches and determine the student's eligibility.

If you have additional questions about monitoring the financial-aid status of transfer students, contact USA Funds' policy department.