2019-2020 Application and Verification Guide Introduction

Application and Verification Guide 2019?2020

Introduction.................................................................................................. 1

CHANGES FOR 2019?2020............................................................................................................................... 1

Chapter 1: The Application Process: FAFSA to ISIR............................... 3

TYPES OF APPLICATIONS................................................................................................................................ 3 , myStudentAid mobile app featuring myFAFSA, FAA Access to CPS Online, Paper (PDF) FAFSA, FAFSA on the phone, FSA ID, Renewal FAFSA

PROCESSING THE FAFSA.................................................................................................................................. 5 OUTPUT DOCUMENTS: THE SAR AND ISIR.................................................................................................. 6 DEADLINES.......................................................................................................................................................... 7

Chapter 2: Filling Out the FAFSA.............................................................. 9

STEP ONE: GENERAL STUDENT INFORMATION.......................................................................................... 9 Questions 1?31, IRS Data Retrieval Tool

STEPS TWO AND FOUR: INCOME AND ASSETS........................................................................................ 14 Questions 32?45 (and questions 80?94 for parents), Zero income, Married filing separately, Qualified education benefits, Reporting "take-back" mortgages, Reporting trust funds, Ownership of an asset

STEP THREE: DEPENDENCY STATUS............................................................................................................ 22 Questions 47?58, Veteran match, Documentation of foster youth, Who does and does not count as a parent on the FAFSA?, Other sources of support for children and other household members

STEP FOUR: PARENTS' INFORMATION (DEPENDENT STUDENTS ONLY)............................................. 28 Questions 59?79, 84 (see Step Two for discussion of questions 80?83, 85?94); Reporting information in cases of death, separation, divorce, and remarriage

STEP FIVE: INDEPENDENT STUDENT DATA............................................................................................... 32 Questions 95?102

STEP SIX: SCHOOL INFORMATION............................................................................................................... 33 STEP SEVEN: SIGNATURE(S).......................................................................................................................... 33

Questions 104?108, Signatures for electronic applications, Signature requirements chart

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Chapter 3: Expected Family Contribution (EFC).................................. 37

GENERAL INFORMATION............................................................................................................................... 37

SIMPLIFIED FORMULA.................................................................................................................................... 37

AUTOMATIC ZERO EFC...................................................................................................................................38

DEPARTMENT OF DEFENSE MATCH AND IRAQ AND AFGHANISTAN SERVICE GRANT................... 38

ALTERNATE EFCS.............................................................................................................................................. 39

THE EFC WORKSHEETS...................................................................................................................................39

FORMULA A--DEPENDENT STUDENTS...................................................................................................... 39 Parents' contribution, Student's contribution from income, Student's contribution from assets, Alternate EFCs for other than nine-month enrollment

FORMULA B--INDEPENDENT STUDENT WITHOUT DEPENDENTS OTHER THAN A SPOUSE ................................................................................................................................ 43

Contribution from available income, Contribution from assets, Alternate EFCs for other than nine-month enrollment

FORMULA C--INDEPENDENT STUDENT WITH DEPENDENTS OTHER THAN A SPOUSE ................................................................................................................................ 45

Available income, Contribution from assets, Calculation of student's EFC, Alternate EFCs for other than nine-month enrollment

EFC WORKSHEETS........................................................................................................................................... 49 Formula A, Formula B, Formula C

Chapter 4: Verification, Updates, and Corrections................................ 77

REQUIRED POLICIES AND PROCEDURES................................................................................................... 77

APPLICATIONS AND INFORMATION TO BE VERIFIED.............................................................................. 78 Verification tracking groups, Reporting results for groups V4 and V5, Verification exclusions

DOCUMENTATION........................................................................................................................................... 81 Documenting AGI, taxes paid, and other tax data with the DRT; Using the tax transcript; Using the tax return; Special situations; Using a joint return to figure individual AGI and taxes paid; Household size; Number in college; High school completion; Identity and statement of educational purpose

UPDATING INFORMATION............................................................................................................................. 90

CORRECTING ERRORS..................................................................................................................................... 91

INTERIM DISBURSEMENTS............................................................................................................................ 91 Overpayments from interim disbursements

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CHANGES IN A SELECTED APPLICANT'S FAFSA....................................................................................... 92 Campus-based and DL changes, Pell changes, Selection after disbursement, After documentation is complete

HOW TO SUBMIT CORRECTIONS AND UPDATES..................................................................................... 93 Using , Submitting changes via FAA Access to CPS Online or EDE, Using the SAR to make corrections, Adding schools and changing a student's address

DEADLINES AND FAILURE TO SUBMIT DOCUMENTATION.................................................................... 94 Campus-Based and DL, Pell Grants, Other considerations, Late disbursements, Verification status codes

SUGGESTED VERIFICATION TEXT................................................................................................................. 96 2019?2020 Suggested verification text

Chapter 5: Special Cases.......................................................................... 111

PROFESSIONAL JUDGMENT........................................................................................................................111 Students without parent support

DEPENDENCY OVERRIDES...........................................................................................................................113 CONFLICTING INFORMATION.....................................................................................................................115

Subsequent ISIRs, Discrepant tax data, Resolution of conflicting information REFERRAL OF FRAUD CASES.......................................................................................................................116

Office of Inspector General address and phone numbers UNACCOMPANIED HOMELESS YOUTH.....................................................................................................117

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Introduction

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This guide is intended for college financial aid administrators and

counselors who help students begin the aid process--filing the Free

Application for Federal Student Aid (FAFSA?) form, verifying infor-

mation, and making corrections and other changes to the informa-

tion reported on the FAFSA.

Throughout the Federal Student Aid Handbook we use "college," "school," and "institution" interchangeably unless a more specific use is given. Similarly, "student," "applicant," and "aid recipient" are synonyms. "Parents" in this volume refers to the parents of dependent students, and "you" refers to the primary audience of the Handbook: financial aid administrators at colleges. "We" indicates the U.S. Department of Education (the Department, ED), and "federal student aid" and "Title IV aid" are synonymous terms for the financial aid offered by the Department.

We appreciate any comments that you have on the Application and Verification Guide, as well as all the volumes of the FSA Handbook. We revise the text based on questions and feedback from the financial aid community, so please write us at fsaschoolspubs@ about how to improve the Handbook so that it is always clear and informative.

CHANGES FOR 2019?2020

We added a paragraph on page 3 introducing a new electronic method for filling out and submitting the application: myFAFSA, which is one feature of the new myStudentAid app that is now available for mobile devices.

On page 9 we added a margin note directing readers to the 2020?21 Data Elements and Justification document on the website for a complete list of the justifications for the questions on the FAFSA.

On pages 10 and 11 we added guidance about questions 21 and 22 of the FAFSA (student gender and Selective Service registration) to help FAAs with situations where students do not identify with their sex at birth.

We added guidance on page 27 explaining that guardianship of a person's estate--which typically occurs when someone has been appointed to be guardian of a minor's estate because the minor has or is about to receive money or property of substantial value--does not qualify as a legal guardianship for the purpose of making a student independent. If someone has only been appointed guardian of a student's estate, the student would answer "No" to the relevant question on the FAFSA.

FSA HB June 2019

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