<p>
This is not true at all for federal aid. It might be at some schools for their own institutional aid, or for some State programs. But it is not true for federal aid.</p>
<p>As long as a student meets SAP they can continue to receive federal aid. There is no requirement to graduate in 8 semesters.</p>
<p>Federal loans are limited by dollar amounts, not by a number of semesters. A student can continue to receive Stafford loans until they reach the aggregate maximum $$ amount. If a student received the maximum yearly amounts they would reach the maximum in four and a bit years ($5500 freshman, $6500 sophomore, $7500 3rd and 4th years, leaving $4000 still available in a 5th year). But if the student has not received the full amounts each year she can continue to be eligible for loans until she meets the aggregate maximum. </p>
<p>The Pell is actually available to an undergrad for something like 16 or 18 semesters.</p>
<p>Other campus based aid such as SEOG or WS would depend on the school’s own policies.</p>
<p>Schools do usually have a maximum amount of credits that a student can attempt and still get financial aid (it will be stated in the school’s SAP policy). It is usually around 150% of the credits required for a degree.</p>
<p>OP: Most schools require you to inform them of all classes you have taken at other colleges. It is not a good idea to lie about this as they will be able to see that the student has received aid before. Being caught in a lie would not be a good way to start at the school. The school may have some sort of academic renewal or forgiveness program.</p>