FAFSA & Verification Updates TASFAA Spring Conference April 25-27, 2016 David Bartnicki U.S. Department of Education 2 College List Issue: FSA has received requests from public to stop sharing full list of colleges on student s FAFSA with every school listed. Resolution: ISIR sent to colleges will only include the Federal School Code and associated housing code for the school to whom the ISIR is sent. Applicants will continue to receive SARs that list all the Federal School Codes selected on each transaction in order State grant agencies will continue to receive the full list of the colleges but, beginning with the 2017-2018 FAFSA that listing will be provided in a random order 3 1
Guidance For Legal Guardianship Issue: Applicants sometimes answer the legal guardianship question incorrectly. Resolution: FAFSA question 55 has been reworded and help text has been modified. 4 Legal Guardianship Messaging 5 Other 2016-17 FAFSA Changes Income threshold for an Automatic Zero EFC increased to $25,000 Change tax line references in taxes paid questions Updated the question to read, Enter your (and spouse s) income tax for 2015. Income tax amount is on IRS Form 1040 line 56 minus line 46; 1040A line 28 minus line 36; or 1040EZ line 10. Excess Advance Premium Tax Credit Repayment and the Health Care Individual Responsibility line items should not be included as taxes paid for Title IV purposes Reorder text in FAFSA questions 26, 28, 29, and 30 6 2
2017-2018 7 Paper FAFSAs More than 99 percent of FAFSAs are filed electronically. Beginning with the 2017-2018 FAFSA we will no longer print the FAFSA as a color packet. PDF FAFSA available on-line to be printed Call 1-800-4FEDAID to request a copy 8 2017-2018 Application 2017-2018 Processing Announcements Beginning with 2017-2018, the FAFSA cycle will begin October 1 instead of January 1 2017-2018 FAFSA filing will begin October 1, 2016 Gives more time to review, submit & update FAFSA data Beginning with 2017-2018, FAFSA income information will come from the prior, prior year 2017-2018 FAFSA will collect tax year 2015 income information Added an applicant s receipt of Medicaid as a qualification for the Simplified Needs Test (SNT) 9 3
FAFSA CHANGES FOR 2017-18 Questions? Early FAFSA/Prior-Prior Year: Issues We ve heard your concerns about. Outreach Early FAFSA Webpage (right-hand side of IFAP) http://ifap.ed.gov/earlyfafsa/indexv1.html Periodic EAs, DCLs, training, Resources on IFAP Q & As recently added Student websites, publications, communications will be updated appropriately and as timely as possible "Early FAFSA" mailbox for the community to contribute thoughts, ideas, and concerns on the implementation of the 2017-2018 Early FAFSA "Early FAFSA" mailbox - EarlyFAFSAFeedback@ed.gov 11 Early FAFSA/Prior-Prior Year: Issues We ve heard your concerns about. Professional Judgement (GEN-16-03) Reminded schools of their ability to use PJ and encourages schools to use PJ when appropriate (and properly document) ED acknowledges likely increase in use of PJ ED will modify risk-based compliance models to account for PJ increase Reminded schools to set Professional Judgment Flag to 1 (EFC Adjustment Processed) to indicate that the CPS submission was the result of a PJ determination 12 4
Early FAFSA/Prior-Prior Year: Issues We ve heard your concerns about. Verification May be some changes but overall process will be the same In most cases financial data processed by IRS Conflicting information (16/17 vs. 17/18 data) ED working to determine how to handle conflicting information during transitional year (e.g. 2015 financial data) 2/18/16 EA encourages use of IRS DRT in 16/17 and 17/18 to reduce likelihood of conflicting information Further conflicting information guidance with be shared though IFAP in the near future 13 Early FAFSA/Prior-Prior Year: Q & As G-Q8: Will institutions have to review all of their students 2016-17 and 2017-2018 ISIRs to determine if there might be conflicting information since supposed to be completed using same 2015 income and tax information? G-A8: No.the Department has developed a process where CPS will review a 2016-2017 FAFSA if filed for a 17-18 applicant. CPS will flag only those 2017-2018 ISIRs where any potential conflict, could have a significant impact on the student s 2017-2018 EFC The most effective ways to prevent conflicting information from occurring is for the FAFSA applicant to use the IRS Data Retrieval Tool (IRS DRT) when completing both their 2016-2017 and 2017-2018 FAFSAs. [April 12, 2016] 14 Early FAFSA/Prior-Prior Year: Items Electronic Announcement #4 - March 18, 2016 Outlines income related items on FAFSA that will be based on 2015 data (prior-prior year) Tax filing status, tax return status, type of return, return eligibility, AGI, taxes paid, exemptions, income earned from work, income exclusions, untaxed income FAFSA items current at time FAFSA completed or for current award year (Not prior-prior year data) Dislocated worker, household size, number in college, assets, certain means-tested benefits 15 5
Prior-Prior Year What ISN T changing When Pell amounts are finalized/announced When Pell charts are released When Pell origination/disbursement records can be sent to COD When Pell funds will be available in G5 When award letters may be sent to students Sec. 482 of the HEA 16 17 2016-17 Verification Overview Same data elements as for 2015-2016 award year Some modifications and clarifications to acceptable documentation Eliminated Child Support Paid (V3) as a separate verification group In limited circumstances, an applicant s Verification Tracking Group could change 7 6
2016-17 Verification - Changes Verification Tracking Group changes: Verification Tracking Group V3 (Child Support Paid) has been removed Applicants placed in V1, V4, V5, and V6 must still verify child support paid if reported on ISIR 19 2016-17 Verification - Changes Verification Tracking Group changes: Applicants may be moved from previously assigned Groups V1, V4, and V6 to Verification Tracking Group V5 Applicant is only required to verify the additional items in V5 that were not previously verified If the applicant is moved to Verification Tracking Group V5, no additional disbursements of any Title IV aid may be made until verification is satisfactorily completed 20 2016-17 Verification - Changes Verification Tracking Group changes: Applicants moved to Verification Tracking Group V5 If Title IV aid had been disbursed prior to receiving an ISIR with the new V5, and the applicant does not complete verification, the applicant is liable for the full amount of TIV aid disbursed for 2016-2017 The institution is not liable Except school must return any Title IV funds as required in any R2T4 calculations 21 7
2016-17 Verification - Changes Applicants moved to Verification Tracking Group V5 Verification can be set on the application or correction Verification Selection Change Flag Y: indicates verification was not set and now record is selected for verification C: indicates the verification tracking group has changed This C is transaction specific 22 2016-17 Verification Income Information for Non-IRS Tax Filers Tax filers who filed an income tax return with a taxing authority in a U.S. territory (Guam, American Samoa, the U.S. Virgin Islands) or commonwealth (Puerto Rico and the Northern Mariana Islands) or with a foreign central government, must submit a copy of a transcript of their tax information A signed copy of the applicable 2015 income tax return that was filed with the taxing authority is only acceptable if tax filers are unable to obtain a free copy of a transcript of their tax information 23 2016-17 Verification Income Information for Non-IRS Nontax Filers Residents of the Freely Associated States (Republic of the Marshall Islands, the Republic of Palau, the Federated States of Micronesia), and a U.S. territory or commonwealth or a foreign central government who are not required to file an income tax return under that taxing authority s rules must submit: a copy of their Wage and Tax Statement (or equivalent documentation) for each source of employment income and a signed statement identifying all of the individual s income and taxes 24 8
High School Completion Status For V4 and V5, if institution successfully verified and documented applicant s high school completion status for a prior award year, verification of high school completion status is not required for subsequent years DD Form 214 Certificate of Release or Discharge From Active Duty may serve as alternative documentation to verify a student's high school completion if it indicates that the individual is a high school graduate or equivalent An institution may not accept as alternative documentation an applicant s self-certification 25 High School Completion Status In rare cases where it is impossible for a refugee, an asylee or a victim of human trafficking to obtain documentation of his or her completion of a secondary school education in a foreign country, an institution may accept self-certification from these applicants Q&A FHD-Q2/A2 (program integrity Q & A website under HSD) Required information included: Proof of attempt to obtain documentation of their completion of a secondary school education in a foreign country Signed/dated statement that indicates applicant completed secondary school education in a foreign country along with - name and address of foreign high school and date foreign HS diploma was awarded Copy of entry status documentation showing status as a refugee, asylee, or victim of human trafficking and who entered the US after the age of 15 26 2016-2017 Verification 27 9
Electronic Announcement 11/18/15 Contains 4 appendices to assist with crafting school verification documents to gather verification data Appendix A Suggested Text Not required to use ED s suggested text and formats ONE EXCEPTION institutions must use the exact language provided in the Statement of Educational Purpose (Groups V4 & V5) Notary s Certificate of Acknowledgement section, does not require the use of the exact language provided, although it must include a copy or description of the identification presented by the applicant to the notary 28 Electronic Announcement 11/24/14 Appendix B Table of verification items Appendix C Verification tracking groups and FAFSA verifiable information Appendix D Timeline Availability of 2015 IRS Tax Information 29 V4/V5 Tracking Results: 2016-2017 30 10
V4/V5 Tracking Results 2016-2017 The V4 and V5 tracking process in FAA Access that began in the 2014-15 processing year WILL CONTINUE for 2016-17 Schools need to select the proper award year for which they are providing results 2015-16, 2016-17, etc. https://faaaccess.ed.gov 31 V4/V5 Tracking Results 2016-2017 Use the Identity Verification Results section on the FAA Access home page 32 V4/V5 Tracking Results 2016-2017 Whom to report: student for whom school received an ISIR with a Verification Tracking Group of V4 or V5 AND for whom school requested verification documentation Do NOT include students the school selected for verification of identity or high school completion status When to report: 60 days following the institution's first request to the student to submit the required V4 or V5 identity and high school completion documentation Changes to previously submitted Identity Verification Results must be updated within 30 days 33 11
Resources Federal Register Notice April 1, 2016 GEN-16-07 April 5, 2016 34 4/1/16 Federal Register Updates DD Form 214 Certificate of Release or Discharge From Active Duty that indicates the individual is a high school graduate or equivalent can be used as alternative documentation to verify the applicant s high school completion status Individual selected for verification required to file a 2015 IRS income tax return and granted a filing extension by the IRS or any nontax filer MUST provide: Confirmation of non-filing from the IRS or other relevant taxing authority dated on or after October 1, 2016 35 2017-2018 Verification GEN-16-07 Verification Tracking Group V6 is eliminated Schools reminded they can still select items of their choosing for verification SNAP and Child Support Paid removed as individual verification items under V1, V4 or V5 Suggested Test for 2017-2018 will be provided in a future electronic announcement 36 12
2017-2018 Verification GEN-16-07 School can use verification documents from 2016-2017 for following items if meet 2017-2018 requirements: Adjusted Gross Income (AGI); U.S. Income Tax Paid ; Untaxed Portions of IRA Distributions; Untaxed Portions of Pensions; IRA Deductions and Payments; Tax Exempt Interest Income; Education Credits; Income Earned from Work Documentation of high school completion obtained prior to the 2017 2018 award year is acceptable Must obtain new documentation each award year for: Number of Household Members Number in College Identity/Statement of Educational Purpose 37 Verification Policy Reminders 38 16-17 - IRS Tax Return Transcript Matrix Electronic Announcement March 23, 2016 Cross-walk of IRS tax financial information between: FAFSA questions IRS Tax Return Transcripts IRS Tax Returns Specifically states do NOT use amounts from any line items on transcripts for verification purposes that use the word RECOMPUTED 39 13
Verification Policy Updates Individuals who filed an amended tax return must submit the following documents to the institution: an IRS Tax Return Transcript, or any other IRS tax transcript(s) that include all of the income and tax information required to be verified; and a signed copy of the IRS Form 1040X that was filed with the IRS Guidance effective 8/13/15 for 15/16 and subsequent years Posted on Program Integrity Q & A website 40 Verification Policy Updates Victims of IRS tax-related identity theft must submit: Statement signed and dated by tax filer indicating they were victims of IRS tax-related identity theft and the IRS has been made aware of the tax-related identity theft; and A Tax Return DataBase View (TRDBV) transcript obtained from the IRS Tax filers who cannot obtain a TRDBV transcript may instead submit another official IRS transcript or equivalent document provided by the IRS if it includes all of the income and tax information required to be verified Guidance applies to 15/16 and subsequent years Posted in 6/26/15 Federal Register Notice 41 Resources 42 14
2016-2017 Verification Federal Register Notice - June 26, 2015 DCL GEN-15-11 - June 29, 2015 Program Integrity Q & A Website ( verification ) http://www2.ed.gov/policy/highered/reg/hearulemaki ng/2009/integrity-qa.html EA 11/18/15 Suggested Text and Appendices Federal Student Aid Handbook Application and Verification Guide Chapter 4 Federal Regulations 668 Subpart E (668.51 668.61); 668.16(f) 43 Contacts Kansas School Participation Team Main Number: 816-268-0410 Jim Wyant (IIS) - 816-268-0431 Atlanta Training Officers David Bartnicki 404-974-9312 Email firstname.lastname@ed.gov 44 44 Training Feedback To ensure quality training we ask all participants to please fill out an online session evaluation Go to http://s.zoomerang.com/s/davidbartnicki Evaluation form is specific to David Bartnicki This feedback tool will provide a means to educate and inform areas for improvement and support an effective process for listening to our customers Additional feedback about training can be directed to joann.borel@ed.gov 45 15
Questions David Bartnicki 404-974-9312 david.bartnicki@ed.gov 46 16