I don't work for Intuit, so I would have no idea about the internal programming and cross-checks in TurboTax, but IRS publication 970 www.irs.gov/pub/irs-pdf/p970.pdf says that an educational institution located outside the United States only has to participate in the U.S. Department of Education's Federal Student Aid (FSA) programs, not that it has to be eligible for new student loans. As there are many, many thousands of foreign educational institutions, I suggest you follow the Publication 970 advice: "The educational institution should be able to tell you if it is an eligible educational institution."
