NASFAA Student Eligibility Practice Exam

The information accessed through the National Student Loan Data System (NSLDS) during pre- and postscreening specifically relates to Title IV loan defaults and overpayments. This is vital for determining a student's eligibility for federal student aid.

When evaluating eligibility, it is essential to assess a student’s financial history concerning their federal student loans. Defaults indicate that a borrower has failed to make the required payments on their loans, which can significantly affect their eligibility for additional federal aid. Similarly, overpayments can occur when students receive more financial aid than they are eligible for, leading to potential issues with future financial assistance.

In this context, understanding the status of Title IV loans is crucial for educational institutions to ensure compliance with federal regulations and to guide students appropriately regarding their financial aid opportunities. The other options, while important in the broader context of a student’s academic and personal development, are not directly relevant to the specific determination of eligibility for federal financial aid as assessed by NSLDS.