NSE Handbook

Students on NSE Exchange may obtain financial assistance for their education from a variety of sources outside of themselves and their families. These sources may include the federal government, state government, institutions of higher education, community or national clubs, groups or associations, and private or public corporations. This section provides an overview of funding options and pays particular attention to compliance with the policies and procedures of the National Student Exchange and the U.S. Department of Education as they relate to providing federally funded financial aid to NSE students. National Student Exchange policies and procedures related to financial aid are applicable to federal programs as well as other funding sources within the control of the student's home institution.

14.1 Sources of Financial Aid 14.1.1 Federal

Federally funded financial aid is need based, meaning that the student or the student's parent/guardian must demonstrate financial need by completion of the FAFSA (Free Application for Federal Student Aid) to qualify for aid. Aid may come in the form of grants, loans, or work-study. Aid may be used as part of the student degree program at their home institution or for that portion of the program which might be contracted out to another institution as part of a domestic or international exchange.

14.1.2 State

State funded financial aid may be need based or merit based. Merit based aid requires that the student demonstrate some superior academic ability or exceptional skill in order to qualify. Aid may come in the form of grants, scholarships, or loans. Aid may or may not be restricted for use within the home state of the student.

14.1.3 Institutional

Institutional aid is any aid funded by the home college or university based on need, merit, or both. Aid may be awarded as a scholarship or tuition remission and may be restricted for use only at the home institution or for that portion of the program which might be contracted out to another institution as part of a domestic or international exchange.

14.1.4 Private

id from private sources may come in the form of grants or scholarships and is commonly awarded directly to the home institution. In some cases, the aid is designated for use at a particular institution or within a specific state or region or for that portion of the student program which might be contracted out to another institution as part of a domestic or international exchange.

14.2 Use of Financial Aid for National Student Exchange

14.2.1 Federal Aid

Assuming all eligibility requirements are met, students participating in domestic exchange programs like National Student Exchange are eligible for and cannot be denied access to federally funded financial aid.

14.2.2 Aid from Other Sources

Financial aid derived from state, institutional, or private sources may or may not be available to NSE participants due to conditions set forth by the fenders of such programs. NSE students are, however, participating in an institutionally approved program for off campus study and receiving credit toward their degree program. This, combined with keeping students registered at the home campus in degree seeking status while they are on exchange, may make it possible for students to obtain aid from some or all of these sources, particularly if the exchange is made on Home Payment where the student continues to pay normal tuition and fees to the home institution. NSE coordinators should inform their outgoing students of the process that state and institutional aid may be used for NSE participation.

14.3 Federally Funded Financial Aid Policies

Information in this section is taken from the U. S. Department of Education Federal Student Aid Knowledge Center which explains the policies and procedures required in the proper administration of federally funded student financial assistance programs.

The Federal Student Aid Knowledge Center is revised annually.

14.3.1 Eligible Programs

Assuming all other eligibility criteria are met, students participating in National Student Exchange are eligible for financial assistance through all federally funded grant or loan programs.

14.3.2 Consortium Agreements

Student eligibility for Title IV funds is defined in the U. S. Department of Education regulations at 34 CFR 668.32. To ensure that students remain eligible for federally funded financial aid while exchanging to another institution, a written agreement or contract must be developed. When an institution signs an NSE Membership Agreement with the National Student Exchange, it incorporates the required consortium agreement elements defined in the U. S. Department of Education regulations at 34 CFR 668.5(a).

14.3.2.1 Elements of a Consortium Agreement

The Department of Education defines the following consortium agreement elements for NSE policy:

Which school will grant the degree or certificate? NSE policy states that the home school will grant the degree.

What is the expense for tuition, fees, room, and meals at each school? NSE coordinators submit campus budget information annually for publication on NSE.org.

What is the student enrollment status at the host school? NSE policy is that the student remains enrolled at the home institution and while enrolled at the host institution.

Which school will be responsible for disbursing aid? NSE policy is that aid is disbursed from the home institution.

Which school should monitor student eligibility? NSE requires submission of online Verification of Enrollment from the host campus no later than the census date of the host campus (roughly the end of the third week of each term.) [NSE is implementing a new online process requiring the student to submit verification in 2026.]

How will student course work at the exchange site be incorporated into the home campus degree program? NSE requires that each outgoing exchange student develop a written advising agreement indicating how courses at the host campus will be accepted into the academic program following exchange.

What are procedures for calculating awards, disbursing aid, monitoring satisfactory progress and other student eligibility requirements, keeping records, and distributing funds? Each NSE member campus determines procedures within their own campus policies.

14.3.2.2 National Student Exchange Policy

Each NSE campus annually renews its commitment to abide by NSE policies and procedures as articulated in the NSE Handbook and summarized in the NSE Terms of Participation through payment of their membership fees. The NSE Membership Agreement is signed by an official of the member institution and filed with NSE Headquarters. This agreement incorporates, by reference to NSE Handbook policies and procedures, elements of the consortium agreement detailed above.

The NSE Membership Agreement meets the requirements for a consortium agreement of the U.S. Department of Education, Office of Federal Student Aid. If an NSE member fails to file an agreement with the NSE Headquarters, an agreement must be separately negotiated and signed with each NSE college and university it sends students to or receives students from to meet guidelines for federally funded financial aid disbursement.

14.3.3 Disbursement

According to Department of Education policy, students participate in domestic exchange programs by paying tuition/fees to their home or host institution. Federal regulations allow for the home institution to award and disburse federally funded financial aid.

For National Student Exchange, tuition/fees may be paid to either the student home or host institution. In order to maintain consistency in financial aid application and disbursement practice among its member colleges and universities, NSE policy is that the home institution is responsible for assessing need and committing, awarding, and disbursing federally funded financial aid.

For Away/Host Payment, where tuition/fees are paid to the host institution, the home institution awards and disburses aid.

For Home Payment, where tuition and fees are paid to the home campus, the home institution awards and disburses aid.

14.3.4 Calculating the Cost of Attendance (COA)

The student cost of attendance is calculated in the same way as for a student taking classes at
only one school. The student tuition/fees, books, supplies, transportation, and incidental charges at the consortium schools should be combined into a single cost. The COA may be the actual or average charges, depending on whether the disbursing school uses actual or average charges for its Pell awards.

To assist campuses in calculating COA, NSE coordinators annually provide budget information from their financial aid contact submit a summary report of costs for tuition/fees, room/meals, transportation, and other expenses in the online submissions. NSE encourages its member institutions to use an actual, rather than an average, charge for COA including transportation from the student home to their host campus and return.

14.3.5 Maintenance of Satisfactory Progress

According to federal regulations, a minimum standard of satisfactory progress must be maintained to be eligible for federally funded financial aid. The minimum standard for continuation in the NSE program is determined by the host institution. The minimum standard for financial aid eligibility is determined by the home institution for both Home and Away/Host Payment. The criteria may vary by institution.

In compliance with federal regulations which address consortium agreements, campuses which are members of a consortium may measure academic progress for exchange students on an annual rather than a single term basis.

14.4 Coordinator Responsibility

It is the home coordinator responsibility to inform students how the financial aid process works throughout the consortium, in general, and on the home campus, in particular. NSE suggests that those procedures and policies be published and provided to students when they first inquire about the program. Coordinators should also involve financial aid personnel in this process.

14.5 Working with the Campus Financial Aid Office

Each coordinator should identify an NSE liaison person in its financial aid office. The existence of a formal relationship between the NSE office and the financial aid office demonstrates a commitment to ensuring that NSE students have access to accurate financial aid information and that their applications are processed in a timely fashion. Each year NSE publishes this information at NSE.org coordinator resources.

14.6 Financial Aid Application, Processing, and Disbursement

In accordance with NSE policy, students file for financial aid at their home campus. The Free Application for Federal Student Aid (FAFSA) is the primary form used in applying for federally funded financial aid.

14.6.1 Students Participating on Away/Host Payment

14.6.1.1 Aid Availability: Away/Host Payment

NSE institutions must offer all federally funded financial aid programs to outgoing Away/Host Payment students except for the Federal Work-Study Program. Loans are likely to replace work-study money. At some schools, other aid, such as emergency loans and state, institutional, or private scholarships may also be available. NSE coordinators and potential NSE participants should consult with the home campus financial aid office concerning details on the types of aid available, application deadlines, and required forms.

14.6.1.2 Processing: Away/Host Payment

Students apply for financial aid at their home campus by stated deadlines. Late applications may mean that aid will not be available to the student at the time it will be needed at the host campus. State and/or campus-based aid may or may not be available.

For record keeping and audit purposes, students should register for a minimum of 12 semester/15 quarter hours in a holding course to keep them identified in full-time status at their home institution and track them through the institution for audit and financial aid purposes. Generally, this registration is generic in nature (e.g., NSE 495). The NSE registration can later be replaced by actual courses with credit hours and course titles when an official transcript is received by the home campus upon completion of the exchange.

14.6.1.3 Budget: Away (Host Campus) Payment

For Away/Host Payment, the home campus uses the estimates of the usual campus budget items (tuition, room, board, etc.) plus the estimated cost of travel from the student home to the host campus and return.

14.6.1.4 Disbursement: Away (Host Campus) Payment

Financial aid is disbursed directly to the student from the home campus according to their established process and timeline.

14.6.1.4.1 Aid Disbursement

Most financial aid disbursements are made electronically directly to the student financial institution.

14.6.1.4.2 Address

In order to disburse aid, it is essential that the home campus know the address of the student while on exchange. It is the responsibility of the student to notify the home coordinator of his/her address and any subsequent changes of address.

14.6.1.4.3 Distribution

Most financial aid disbursements are made electronically directly to the student banking institution. Aid checks may be picked up prior to exchange or arrangements may be made to send them to the student, coordinator, or financial aid office at the host campus.

The critical concern for Away Payment students is the timely receipt of their home school financial aid to meet host school deadlines for payment of tuition, room and meal obligations. This may pose particular problems for students whose home institution may use a quarter calendar and whose host college or university is on the semester calendar.

Some institutions require proof of enrollment before releasing aid, which may delay receipt of payment until the NSE Verification of Enrollment Form is received (refer to Section 14.10). Some institutions release aid based on an NSE enrollment for the exchange program at the home institution (refer to Section 14.7).

14.6.1.4.4 Role of the Home Campus

Coordinator Home coordinators should apprise students of possible delays in aid disbursement. The following procedures may be helpful in reducing frustration caused by these delays.

14.6.1.4.5 Role of the Host Campus

Coordinator Host coordinators must provide an NSE Verification of Enrollment Form (refer to Section 14.10) to the NSE coordinator at the home campus by the end of the first three weeks of each term. It is the responsibility of the host coordinator to notify the home coordinator in a timely fashion if the student withdraws from enough credit hours to reduce attendance to less than full time since this has consequences for continuing eligibility for federally funded financial aid. Likewise, it is the responsibility of the host coordinator to notify the home coordinator in a timely fashion if the student completely withdraws from the university. Information on the date of withdrawal and last day of attendance must be provided. The home coordinator subsequently notifies the home campus financial aid office of any changes in the student enrollment status.

14.6.2 Students Participating on Home Payment

14.6.2.1 Aid Availability: Home Payment

Home Payment schools offer all federally funded financial aid programs to outgoing Home Payment students except for the Federal Work-Study Program which generally requires employment on the Home Campus. Loan money is likely to replace work-study money. At some schools, other aid, such as emergency loans and state, institutional, or private scholarships may also be available. NSE coordinators and potential NSE participants should consult with the home campus financial aid office concerning details on the types of aid available, application deadlines, and required forms.

14.6.2.2 Processing: Home Payment

Students apply for financial aid at their home campus by stated deadlines. Late applications may mean that aid will not be available to the student at the time it will be needed at the host campus. Campus based aid may not be available at all.

For record keeping and audit purposes, students should register for a minimum of 12 semester/15 quarter hours to keep them identified in full time status at their home institution and track them through the institution for audit and financial aid purposes. Generally, this registration is generic in nature (e.g., NSE 495). The NSE registration can later be replaced by actual courses with credit hours and course titles when an official transcript is received by the home campus upon completion of the exchange.

14.6.2.3 Budget: Home Payment

For Home Payment, the tuition/fees of the home campus are used with the remainder of the budget coming from the standard budget items of the host campus. In addition, the estimated cost of travel from the home to the host campus of the student and return should be included. NSE assists in this process by posting costs for financial aid budgeted items on all the campus' profiles at NSE.org.

14.6.2.4 Disbursement: Home Payment

14.6.2.4.1 Endorsement

Most financial aid disbursements are made directly to the student banking institution.

14.6.2.4.2 Address

To disburse aid, it is essential that the home campus know the address of the student on the host campus. It is the responsibility of the student to notify the home coordinator of his/her address and any subsequent changes of address.

14.6.2.4.3 Distribution

Most financial aid disbursements are made directly to the student banking institution.

The critical concern for Home Payment students is the timely receipt of their home school financial aid to meet host school deadlines for payment of room and meal obligations. Problems should be addressed for students whose home institution uses a quarter calendar and whose host college or university is on the semester calendar.

Some institutions require proof of enrollment before releasing aid, which may delay receipt of payment until the NSE Verification of Enrollment Form is received (refer to Section 14.10). Some institutions release aid based on an NSE enrollment for the exchange program at the home institution (refer to Section 14.7).

14.6.2.4.4 Role of the Home Campus Coordinator

Home coordinators should apprise students of possible delays in aid disbursement. The following procedures may be helpful in reducing frustration caused by these delays.

14.6.2.4.5 Role of the Host Campus Coordinator

Host campuses must provide an NSE Verification of Enrollment (refer to Section 14.10) to the NSE coordinator at the home campus by the end of the first three weeks of each term. It is the responsibility of the host coordinator to notify the home coordinator in a timely fashion if the student withdraws from enough credit hours to reduce attendance to less than full time since this has consequences for continuing eligibility for federally funded financial aid. Likewise, it is the responsibility of the host coordinator to notify the home coordinator in a timely fashion if the student completely withdraws from the university. Information on the date of withdrawal and last day of attendance must be provided. The home coordinator subsequently notifies the home campus financial aid office of any changes in the student enrollment status. [NSE is implementing a new online process requiring the student to submit verification in 2026.]

14.7 Student Enrollment Status

Outgoing and incoming NSE students should be treated so as not to interrupt the matriculation status of the student or the operations and procedures of the participating campus.

14.7.1 At the Home Campus

Students should remain registered as full time students on their home campus while on exchange. Such enrollment tracks the student through the institution for record-keeping and audit purposes. The full time registration satisfies the requirements for federal financial aid disbursement so that aid can be released to the exchange student consistent with native students on the home campus

Most campuses create a 12-15 credit hour holding course for NSE. Campuses charging a singular fee for any number of hours beyond the minimum for full time status may set the minimum number. Campuses charging by the credit hour must determine the credit hour level for which they will charge students. Most students will complete the average number of hours usually taken at the home campus.

14.7.2 At the Host Campus

Students are required to be in full time, matriculated status at the host campus. How they are classified will vary with the policies of the individual campus. The easiest and most accurate method is to require transcripts that provide the host campus with the total credit hours completed and subsequent class standing dictated by those hours.

14.8 Advising Agreement

The National Student Exchange requires that each outgoing exchange student consult with their academic advisor (or transfer credit approver) and commit to writing a list of potential courses to be taken while on exchange and an understanding of how the courses will be accepted into the student academic program upon return to the home college or university. This advising agreement should be filed with the student academic advisor and NSE coordinator. This agreement ensures that the work to be completed on exchange is pre-approved by the home institution and guides the academic department in distributing the course work when the student returns from exchange.

14.9 Deferments

Most campuses permit deferred payments for tuition/fees and/or room and meals based on the knowledge that the student is receiving adequate financial aid. For Home Pay, notification is usually accomplished by a letter from the home campus financial aid office to the host campus stating the amount, sources, and approximate dates for disbursement. It is recommended that such a letter be sent to the host NSE coordinator. However, a campus may request such a letter be sent to the financial aid office or the student accounting office.

While some host campuses will defer payment due them for room and meals for incoming students with the assurance of financial aid, others will require payment prior to or upon arrival at the host college or university. It is the student responsibility to comply with the host campus procedures and requirements, including timely payment of fees.

The NSE coordinator annually submits identification of deferments and for what expenses. When students are receiving aid from their home campus, deferments are usually formalized by receipt of an award letter from the financial aid office at the home campus indicating the amount, sources, and approximate dates for disbursement of aid.

14.10 Verification of Enrollment

NSE home and host coordinators are expected to verify the enrollment of students currently on exchange to home coordinators each term. Verifications must be completed and submitted to the home campus coordinator by the end of the third week of classes for each term. Every student accepted by the host campus must be accounted for, including those who were placed but failed to enroll at the host campus. [NSE is implementing a new online process requiring the student to submit verification in 2026.

Release of the above information is allowed under the Family Rights and Privacy Act (FERPA) as long as the information is released only between the receiving (host) and the sending (home) institutions

Timely verification of enrollment is critical to the process through which financial aid may be disbursed to students. The home coordinator is expected to immediately forward the verification to the financial aid office.

14.11 Maintenance of Full time Status

NSE students are expected to enroll as full time students while they are on exchange to their host college or university. It is the responsibility of the host coordinator to notify the home coordinator in a timely fashion if the student withdraws from enough credit hours to reduce attendance to less than full time. Likewise, it is the responsibility of the host coordinator to notify the home coordinator in a timely fashion if the student completely withdraws from the university. Information on the date of withdrawal and last day of attendance must be provided. The home coordinator subsequently notifies the home campus financial aid office. Credit hour adjustments may impact aid awards in subsequent semesters.

14.12 Recording Exchange Work

Under a consortium agreement, work completed on exchange must be credited back to the student's academic program at his/her home institution. National Student Exchange recommends that the home campus permanent record reflect that the student participated in a university-sponsored exchange program (in this case, National Student Exchange), the name of the NSE member college or university attended, the course work completed on exchange, and grades earned with inclusion of those grades in the cumulative GPA.

14.13 Returning Students

Students who are on exchange need to have financial aid information sent to them to meet application deadlines for their return to the home college or university. Processing is accomplished in the usual manner with accessibility the same as other students on the home campus. At the completion of the exchange, students must request that official transcripts are sent to their home institutions. Home coordinators should verify that the transcript has been received and that the exchange work has been included on the student permanent record