How can a person's parent with a lien regain Title IV eligibility?

Study for the NASFAA Student Eligibility Test. Use flashcards and multiple choice questions, with explanations and tips for better understanding. Prepare effectively for your exam!

A parent with a lien can regain Title IV eligibility by paying the judgment in full. When a lien has been placed on a parent's financial records, it often indicates that there are unresolved legal financial obligations, which can impact the ability to receive federal student aid under Title IV. By fulfilling the financial obligation and clearing the lien, the parent can demonstrate compliance with financial eligibility requirements tied to federal programs.

Resolving the lien directly addresses the underlying issue of financial eligibility. It ensures that the parent is not seen as a risky borrower by financial institutions and has settled any legal claims against them, thereby restoring their eligibility for federal assistance programs. This necessary action ensures that they can support their child’s education through federal financial aid avenues.

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