If the lender loses money on the property and FHA insurance pays the diferance, will FHA make payment arangments with me?
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Generally, a financial aid applicant is ineligible for Title IV federal student aid if he/she has an outstanding federal debt lien.
But – records of those liens are not monitored in the National Student Loan Data System (NSLDS), and your school is not required to question about any non-student loan defaults as part of the financial aid application process.
If your school should happen to become aware of a federal debt lien, they would be required to deny federal student aid, but otherwise, there is no negative impact of FHA default on financial aid analysis for federal student aid.
Excellent luck!