What does a C-Code on a FAFSA output document indicate?

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 C-Code on a FAFSA output document indicates that there is a reject code or serious eligibility issue. This code signifies that the student's Free Application for Federal Student Aid (FAFSA) was not processed successfully due to inconsistencies, missing information, or other significant eligibility concerns. When a C-Code is present, the student or financial aid administrator must review the specified issues and take necessary actions to correct them so the application can be processed effectively.

The presence of a C-Code is crucial for addressing any potential problems before the student can receive federal financial aid. This ensures that only eligible students receive the funds, adhering to the regulations governing financial aid. By resolving the issues linked to the C-Code, students can move forward in their financial aid process.

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