What happens if a student's ISIR application has a reject code?

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!

When a student's ISIR (Institutional Student Information Record) application has a reject code, it indicates that there are specific issues or discrepancies with the application that need to be addressed. The presence of a reject code prompts the school to take action to resolve these issues before the student's eligibility for federal financial aid can be confirmed.

Reject codes are typically assigned when there is missing information, inconsistencies, or other errors that prevent the application from being processed correctly. Consequently, the institution cannot proceed with awarding financial aid until they investigate and correct the problems associated with the reject code. This ensures that all required information meets eligibility criteria and that the aid is granted based on accurate data. Each reject code has a specific reason, which institutions can refer to in order to guide the student in resolving the issue.

In contrast, an outright denial of the application does not occur simply due to a reject code; the school is given the opportunity to work with the student to fix the discrepancies. Similarly, automatic eligibility for grants or proceeding without issues are not applicable as the presence of a reject code inherently indicates unresolved problems.

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