Read it again: it refers to the student’s “home country.” That clearly is referring to foreign students!
It is 30 years ago, but who knows. I would think States would give aid if they wanted students to stay, Say it was a med student, and you have a doctor shortage.
Almost every time I was in a hospital, a foreign student or doctor was part of the process.
Also, every time I signed up at a school, they made me fill out financial aid forms, even though I would never get it.
So it is possible he just did the same. Applied and never got it. Then forgot about it.