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I am writing a letter of appeal for financial aid due to medical reasons and I have dr's approval but I wasn't sure if they needed an in-depth letter or general letter due to patient privacy. I would rather not disclose my personal health information to the school.

yes, federal aid can be applied to online education. usually when filling out your FAFSA it will let you know if the school you choose is accepted or not, but basically as long as it is an accredited college, it will be approved.