U.S. Dept. of Education officials announced the ban Thursday among a series of measures meant to increase financial oversight of the company.
Under the law, to keep financial aid at the maximum amount, students must complete 30 credits by the end of their freshman year and in each additional year.
The 21st Century Scholars program guarantees state university tuition to students who maintain a C average in high school and stay out of trouble.
Students will gather at the statehouse today, calling on legislators to protect funding for financial aid.
Indiana University is looking at ways to provide more options to students who need financial aid.