application and verification guide
TRANSCRIPT
ApplicationandVerificationGuide
Introduction
Thisguideisintendedforcollegefinancialaidadministratorsandcounselorswhohelpstudentsbegintheaidprocess—
filingtheFreeApplicationforFederalStudentAid(FAFSA®)form,verifyinginformation,andmakingcorrectionsandother
changestotheinformationreportedontheFAFSA.
ThroughouttheFederalStudentAidHandbookweuse“college,”“school,”and“institution”interchangeablyunlessa
morespecificuseisgiven.Similarly,“student,”“applicant,”and“aidrecipient”aresynonyms.“Parents”inthisvolume
referstotheparentsofdependentstudents,and“you”referstotheprimaryaudienceoftheHandbook:financialaid
administratorsatcolleges.“We”indicatestheU.S.DepartmentofEducation(theDepartment,ED),and“federalstudent
aid”and“TitleIVaid”aresynonymoustermsforthefinancialaidofferedbytheDepartment.
WeappreciateanycommentsthatyouhaveontheApplicationandVerificationGuide(AVG),aswellasallthevolumesof
theFSAHandbook.Werevisethetextbasedonquestionsandfeedbackfromthefinancialaidcommunity,soplease
reachouttousabouthowtoimprovetheHandbookthroughthe“ContactCustomerSupport”featureinourPartner
Connect’sHelpCenterclickingon“FSAHandbook”undertheTopicsection.
Changesfor2022-2023
ThroughouttheAVG,alldates,pertinenttaxreturnandscheduleinformation,alongwithvariousresourcesandreferences
havebeenupdatedtosupporttherequirementsassociatedwiththe2022-2023processingyearandthe2020basetax
year.Also,whereappropriate,linksandpublicationsassociatedwithFSA’snewPartnerConnectandKnowledgeCenter
havebeenproperlyupdated.
WeaddedinformationinChapter2underthe“StepOne:GeneralStudentInformation”sectionhighlightingtheFAFSA
SimplificationActeliminationoftheSelectiveServiceanddrug-relatedconvictionstudenteligibilityrequirementswhich
startedinthe2021–2022awardyear.
InChapter2,under“Assets”inthe“StepTwoandFour:IncomeandAsset”section,weprovidedinformationindicating
thatBitcoins(virtualcurrency)aretreatedasanassetontheFAFSAform.
InChapter3,weaddedanewsectionentitled“ChildrenofFallenHeroesScholarshipAct”brieflydescribingtheEFC
impactassociatedwithPell-eligiblestudentswhoqualifyforthisbenefit.
WeremovedtextfromthebeginningofChapter4referringtotheverificationwaiversaffordedstudentsandschoolsin
the2021-2022awardyearasoutlinedinGEN-21-05.Ifadditionalverificationwaiversareestablishedspecificallyforthe
2022-2023awardyearduetotheon-goingCOVID-19pandemic,wewillupdatetheAVGaccordingly.
ThroughoutChapter4weremovedallreferencestohighschoolcompletionstatusunderV4andV5sinceitwasremoved
asaverifiableitemintheSeptember1,2021,FederalRegisternotice.
Underthe“ReportingresultsforgroupsV4andV5”sectioninChapter4,weupdatedthenumericcodestoaccountfor
theremovalofthehighschoolcompletionstatusrequirementunderV4andV5asoutlinedintheSeptember1,2021
electronicannouncement.
Underthe“ProfessionalJudgement”sectioninChapter5,weaddedareferencetoGEN-21-02remindinginstitutionsof
theirabilitytoperformPJsduringthecurrentCOVID-19pandemic.
Chapter1
TheApplicationProcess:FAFSAtoISIR
ThelawsgoverningtheFederalStudentAid(FSA)programsrequirethatapersonapplyforaidwithaformprovidedby
theU.S.DepartmentofEducation(ED)andthatnofeebechargedforprocessingit.ThisistheFreeApplicationfor
FederalStudentAid(FAFSA®)form.
Tobeconsideredforfederalstudentaid,astudentmustcompleteaFAFSAform.Itcollectsfinancialandotherinformation
usedtocalculatetheexpectedfamilycontribution(EFC)andtodetermineastudent’seligibilitythroughcomputer
matcheswithotheragencies.
TheFAFSAformistheonlyformstudentsmustfillouttoapplyforTitleIVaid.Aschoolcannotrequireextrainformation
fromstudentsexceptforverificationorresolutionofconflictinginformation.However,aschoolmayrequireadditional
informationforotherpurposes,suchaspackagingprivateorinstitutionalaid.Iftheschoolcollectsadditionalinformation
thataffectsTitleIVeligibility,itmusttaketheinformationintoaccountwhenawardingTitleIVaid.
TypesofApplications
MostFAFSAformsarefiledelectronically,butthereareotheroptions.
FAFSAonline
Students,parents,andpreparerscancompleteanapplicationonlineandsenditdirectlytotheCentralProcessingSystem
(CPS).TheycanalsocorrectpreviouslysubmitteddatathatwasnotimportedfromtheIRS.Helpisavailableforstudents
onlineorbycallingtheFederalStudentAidInformationCenter(FSAIC)at1-800-4-FED-AID(1-800-433-3243).Tomake
usingtheWebapplicationeasier,EDproducestheFAFSAontheWebworksheet,whichcanbeprintedfromthe
StudentAid.govwebsite.
myStudentAidmobileappfeaturingmyFAFSA
AnotherwaytoapplyisthroughtheFAFSAfeatureofthemyStudentAidappformobiledevices.Students,parents,and
preparersmayuseittobegin,complete,and/orsubmitaneworrenewalFAFSA.ThemyStudentAidappisavailableon
theAppStore(iOS)oronGooglePlay(Android).HelpisavailableintheapporbycallingFSAIC.
FAAAccesstoCPSOnline
Youcansubmitastudent’sapplicationdataatFAAAccesstoCPSOnline.Youcanalsoconnecttothesitethrough
EDExpress.
Beforesubmittingthedata,printthesignaturepage/FAFSAsummaryforthestudent(andparentifappropriate)tosign,or
havethestudentfilloutandsignapaperFAFSAform.AsnotedattheendofChapter2,youwillneedtoretaineitherthe
signedsignaturepage/summaryorsignedFAFSAformforyourrecords,evenifthestudentdoesn’treceiveaidorattend
yourschool.
Paper(PDF)FAFSAForm
Morethan99%ofapplicationsarefiledelectronically,sotheonlypaperoptionisthePDFFAFSAform,whichstudentscan
getatstudentaid.gov.TheycanprintthePDFandfillitoutbyhand,ortheycantypetheirdataonthePDFbeforeprinting
andmailingit.Ifneeded,theycanrequestsinglecopiesfromFSAICbycalling1-800-433-3243.
OtherthantheselimitedpaperFAFSAformoptions,FSAnolongerprintsormailsaid-relatedpublications,thoughtheyare
availableonlineforuserstodownloadandprint.Formoreinformationonelectronicversionsofpublications,factsheets,
onlinetools,andotherresources,pleasegotoFinancialAidToolkit.ed.gov/resourcesand/orStudentAid.gov/resources.
ApplyingelectronicallyisbetterthanusingthepaperFAFSAformbecauseofthefollowingadvantages:fasterprocessing;
theavailabilityofonlinehelp;skiplogic,whichallowsapplicantstoskipoverquestionsthatdon’tpertaintothem;and
fewererrorsandrejectedapplicationsbecauseinternalandend-of-entrydataeditsensurethatrequiredfieldsare
completedandconflictsareresolvedpriortosubmission.
FAFSAonthephone
StudentswhohavelimitedornoInternetaccessandfacepressingdeadlinescanchoosetocompleteandsubmittheir
applicationbycalling1-800-433-3243,tellingarepresentativetheywouldliketofillouttheirFAFSAformoverthephone
andprovidingtheirinformation.Thistypicallytakesabouthalfanhour.Studentswillreceiveapaperstudentaidreport
(SAR)7–10dayslater,whichthey(andtheirparents,ifappropriate)mustsignandreturn.Becausethisisnotthe
preferredmethodtoapplyforaid,itshouldbeusedsparinglyandonlybythosestudentsidentifiedpreviously.
FSAID
StudentsusetheFSAIDtologontotheFAFSAonlineandotherFSAwebsiteswithausernameandpasswordtheycreate.
AnFSAIDisalsoneededforstudents,parents,andpreparerstousetheFAFSAfeatureofthemyStudentAidmobileapp.
ParentsandstudentscanelectronicallysigntheFAFSAformbutmustdosowiththeirownFSAID.Averifiedemail
addressorcellphonenumbercanbeusedinsteadoftheusername.UserscancreateanFSAIDonlinequicklyand
securely.
RenewalFAFSA
AstudentwhohasreceivedanFSAIDandwhotheyearbeforehadanISIRwithasuccessfulmatchonSocialSecurity
number(SSN),name,anddateofbirthwiththeSocialSecurityAdministration(SSA)iseligibleforarenewalFAFSAform.
WhenthestudentlogsintotheelectronicFAFSAform,heorshewillbeaskedifheorshewantstopre-fillsomeofthe
applicationwithdatafromtheprioryear.Bychoosingthisoption,thestudentcanrevieweachpre-filleditem,updateitif
ithaschanged,andprovidenewinformationasneeded.Ifanaidadministrator’sschooldoesnotappearontherenewal
application,heorshecanusethestudent’sdatareleasenumber(DRN)toaccesstheapplicationinFAAAccesstoCPS
Online.
InOctober–November2021,studentswithavalidemailaddressintheCPSwhosubmittedFAFSAinformationforthe
2021-2022awardyearandhavenotyetdonesofor2022–2023willreceiveanemailencouragingthemtocompletethe
newapplicationearly.Inaddition,inJanuary-February2022,renewal-eligiblestudentswhostillhavenotsubmitted2022–
2023FAFSAinformationwillreceivearenewalreminderasinpreviousyears.
BecausestudentsfromPalau,theMarshallIslands,andMicronesia,knowncollectivelyastheFreelyAssociatedStates,are
noteligibleforanFSAID(forlackofanSSN),theycannotpre-filldataintheonlineFAFSAform.ButanFAAcanuseFAA
AccesstoCPSOnlinetoenterrenewalapplicationsforthesestudentsiftheymeettherenewalapplicationeligibility
requirements.
FAFSAfilersundertheageof13
BecausetheChildren’sOnlinePrivacyProtectionAct(COPPA)of1998prohibitsanyentity,includingagovernment
agency,fromelectronicallyconductingbusinessorcommunicatingwithapersonunderage13,applicantswhoare12or
youngercannotcompletetheFAFSAonline.Instead,whentheyapplyforfinancialaid,theyoraparentorlegalguardian,
financialaidadministrator,orhighschoolcounselorcanfillouttheappropriateawardyearPDFFAFSAandmailitto
FederalStudentAidPrograms
Attn:COPPA/CORRProcessBuilding1
1084SouthLaurelRoad
London,KY40744
Suchapplicantsarenottoprovideanemailaddressontheapplicationorwithanycorrectionthatmightfollow.Afterthe
FAFSAformissubmitted,itwillbeprocessedandapaperSARwillbesenttothestudentandaregularISIRwillbesentto
schools.SeetheAugust4,2016,announcementformoreinformation.
ProcessingtheFAFSA
ThePDFFAFSAformsgototheFAFSAprocessorfordataentryandthentotheCPS.Applicationsthataresignedand
submittedonlinegodirectlytotheCPS.Ifawebapplicantindicatedheorshewouldsignelectronicallylaterorsenda
papersignaturepage,hisorherFAFSAinformationgoestoasignatureholdfileforupto14days.Ifsometypeof
signatureisnotreceivedinthattime,theapplicationwillbesenttotheCPSbutwillberejected;itwon’tbeprocessed
againuntilasignatureisreceived.
TheCPSusesapplicationdatatocalculatetheEFCandtomatchagainstseveraldatabases:NSLDS,theDepartmentof
Defense,theDepartmentofJustice,theSSA,andtheDepartmentofVeteransAffairs,aswellastheDepartmentof
HomelandSecurity’sdatabaseofnoncitizensandtheSelectiveServiceSystem(SSS)registrationdatabase.(Notethatas
DCLGEN-21-04explains,2022–2023isthelastyearthattheSelectiveServicequestionshouldappearontheFAFSAform,
andfailuretoregisterwiththeSelectiveServicedoesnotaffectastudent’seligibilityforTitleIVaid.)
TheCPSalsocheckstheapplicationforpossibleinconsistenciesandmistakes.Forinstance,ifadependentstudent
reportedtheparents’maritalstatusasmarriedbutreportedthehouseholdsizeas“2,”theeditcheckswouldcatchthe
inconsistency.Evenwhendataisinconsistent,theCPSmaybeabletocalculateanEFCbasedonassumptions.For
applicationsthatyourschoolsubmitsthroughFAAAccess,youcananticipatecertainassumptionsandcorrectoroverride
informationonthestudent’sFAFSAformsubmission.Studentswhosubmitapplicationsonlinecanalsocorrectoroverride
someoftheCPSeditsbeforesubmittingtheapplication.
OutputDocuments:TheSARandISIR
Afterprocessingiscomplete,theCPSproducesoutputdocumentsthatshowtheinformationthestudentoriginally
provided,theEFC,theresultsoftheeligibilitymatches,andinformationaboutaidhistoryandaboutanyinconsistencies
identifiedthroughtheCPSedits.IftheCPSwasunabletocalculateanEFC,theoutputrecordwillnotshowone.
TheoutputdocumentsaretheInstitutionalStudentInformationRecord(ISIR),whichismadeavailableelectronicallytothe
schoolsthestudentlistedontheFAFSAform(oraddedlater)andtheirstateagency,andtheStudentAidReport(SAR),
whichissenttothestudentormadeavailabletohimorheronline.
YouwillreceiveanISIRforthestudentonlyifheorsheincludesyourschoolontheirFAFSAform.Ifyourschoolisnot
listed,youcanrequestanISIRforthestudentthroughFAAAccessbyaddingyourfederalschoolcodeifyouhavehisor
herDRN,whichauthorizesyouraccesstothestudent’sapplicationinformation.TheDRNappearsintheupperright
cornerofthefirstpageoftheSARandatthetopofsomeofthecorrectablepages.
YouarerequiredtoreceiveISIRsandtoacceptSARsfromstudents,butyoucannotrequirethemtosubmitSARsinorder
toreceiveaid.Ifyoudon’thaveanISIRforastudent,yourfederalschoolcodemustbeaddedtohisorherrecordsoan
ISIRissenttoyou.WerecommendmakingcorrectionselectronicallyviatheonlineFAFSA(thestudent)orFAAAccess(the
school);however,youcanrequirestudentstouseaSARtomakecorrections.Ifyoudon’thaveanISIRforastudentwho
providedaSARorSARAcknowledgement,youmustusetheSARortheacknowledgementtoawardanddisbursethe
studentaid.Again,youmustalsoensurethatyourschoolcodeisaddedtothestudent’sCPSrecord(seethe“Howto
SubmitCorrectionsandUpdates”sectioninChapter4).
TheSARarrivesinoneofthreeways.(1)Studentswhogiveavalidemailaddresswillreceiveanemailwithalinktoan
onlineSAR.(2)Studentswhodon’tgiveanemailaddressandwhoapplywithaPDFFAFSAformwillreceiveapaperSAR.
TheywillalsoreceiveapaperSARifastudentorparentsignatureismissing;thatSARmustbesignedandreturnedfor
processing.(3)Studentswhodon’tgiveanemailaddressandwhoapplyelectronicallywillreceiveapaperSAR
Acknowledgement,whichhasfewerandlessdetailedcommentsthantheSARandcan’tbeusedforcorrectionsasthe
SARcan.
TheSARsandISIRsincludecommentcodesandtextexplaininganyquestionableresultsfromthematchesandedits
describedhere.ForsomeofthesetherewillalsobeaCcode,whichyoumustresolvebeforepayingthestudentaid.For
instance,ifastudenthasdefaultedonafederalstudentloan,theSARandISIRwillnotethisinseveralplaces,including
commentstothestudentandtheNSLDSfinancialaidhistorypage.
Forotherproblems,theSARandISIRwillshowthattheFAFSAhasbeenrejectedandnoEFChasbeencalculated.The
SARwilltellthestudenthowtoremovetherejectbyprovidingsignatures,moreinformationorbycorrectingerrors.
RejectcodesaregivenintheFAAInformationsection,andacompletelistofthemisinTheISIRGuide2022–2023.
AvalidSARorISIRisoneonwhichalltheinformationreportedonastudent’sFAFSAisaccurateandcompleteasofthe
datetheapplicationissigned(34CFR668.2).
Deadlines
Theapplicationprocessingcyclelasts21months.Forthe2022-2023awardyear,applicationsareacceptedbeginning
October1,2021,andwillbeacceptedthroughJune30,2023.
TheCPSmustreceiveastudent’selectronicFAFSAinformationbyJune30,2023.ApaperFAFSAformmustbelegible,
anditmustbemailedtotheFederalStudentAidProgramsaddresslistedontheFAFSAformintimefortheprocessorto
receiveitbyJune30,2023.Therearenoexceptionstothesedeadlines.Anelectronicapplicationcannotbereceived
beforeOctober1,2021,andifitisreceivedafterJune30,2023,itwillnotbeprocessed.Apaperapplicationreceived
beforeOctober1,2021,orafterJune30,2023,willbereturnedunprocessedwithaletterofexplanation.Ifitissigned
beforeandreceivedafterOctober1,2021,itwillbeaccepted,butthestudentwillreceivearejectedSARaskinghimor
hertodateandre-signtheSARandreturnitforprocessing.
Forotherdeadlinespertainingtocorrections,changes,disbursements,andverification,seetheofficialdeadlinenoticefor
the2022–2023awardyear.ItwillprovidealltheprocessingdeadlinedatesandwillbeavailableintheKnowledgeCenter
websiteunder“FederalRegisters.”Forthesedeadlines,thedatetheCPSprocessedtheISIRtransactionisconsideredto
bethedatetheinstitutionreceivedtheISIR.OntheSAR,SARAcknowledgement,andISIRprintout,theprocesseddateis
abovetheEFConthefirstpage.
Studentswhodon’tsubmittheFAFSAformtilllaterintheawardyearcanreceiveaidfortheentireyear,including
completedpaymentperiods,aslongastheywerenotineligibleatthetime.Seethesectiononretroactivedisbursements
forcompletedperiodsinVolume3.
Websitesforstudents
https://studentaid.gov/—Highereducationportalforstudentsthatnowcontainsfunctionspreviouslyhousedon
otherwebsites,suchastheFAFSAapplicationloaninformation,counseling,payment,andotherfeaturesformerly
ontheNSLDSstudents’website
https://studentaid.gov/fafsa—Submitanapplicationormakecorrectionstoone;getanonlineSAR;check
statusofanapplication
https://fafsa.ed.gov/spa/fafsa4c/#/landing—useFAFSA4caster(clickonUnderstandAid>EstimateYour
FinancialAid),tohelpfuturecollegestudentsestimatewhattheirEFCmightbeandwhatkindoffederalstudent
aidtheymightbeeligibleforwhentheyapplyforaid
https://studentaid.gov/fsa-id/create-account/launch—CreateanFSAIDandaccount,whichallowsstudents
toaccesstheirFAFSAformandotherinformationontheportal.
Resourcesforschools
CPSWebapplicationsdemo—YoucanusetheFAFSAontheWebdemonstrationsitetotrainfinancialaidstaff
ortoshowstudentshowtousetheonlineapplication.Gotothebottomofhttps://fafsademo.test.ed.govand
choosethelinktotheFOTWdemo(thereisalsoanFAAAccessdemo).
2022–2023SummaryofChangesfortheApplicationProcessingSystem—Goto
https://fsapartners.ed.gov/knowledge-centerandselectResourceType(underLibrary)>Handbooks,
Manuals,orGuides>2022-2023>SummaryofChangesfortheApplicationProcessingSystemGuide.
CPStechnicalsupportandquestionsaboutEDconnect,EDExpress,andRenewalFAFSAs—Calloremail
CPScustomerservice:1-800-330-5947,[email protected]
Technicalsystempublications—GototheSoftwareandOtherToolspageontheKnowledgeCenterwebsite.
FSAcallcenters—GototheHelpCenterpageintheFSAPartnerConnectwebsitesforthecontactinformation
pertainingtokeyschoolservicecentersandFSASystems.
Chapter2
FillingOuttheFAFSA
TheFAFSAformisthefirststepinthefinancialaidprocess.Becauseit’simportanttocompletetheformcorrectly,this
chapterdiscussessomeofthemoredifficultquestionsthatarise.Whilethechapterfollowstheorganizationofthepaper
applicationandtheISIR,theguidanceappliesequallytotheFAFSAonline.ToseehowFAFSAdataareusedtocalculate
theexpectedfamilycontribution(EFC),pleaserefertoChapter3.
TheFAFSAformisorganizedassteps,eachconsistingofagroupofrelatedquestions.Therearealsoinstructionsonhow
tofillouttheform.Theguidanceinthischaptersupplementsthoseinstructionsandexplainswhysomeofthequestions
areneededontheFAFSAform.
StudentscangetadviceonfillingouttheFAFSAonlineathttps://studentaid.gov/resources.Youmaywanttolinkto
thisreferencefrompagesthatstudentsuseonyourwebsiteorusecertaingraphics,videosorpublicationsreferencedon
thesitewhenworkingwithyourstudents.
Theparentsmentionedarethoseofdependentstudents.Thenumbersinparenthesesarefortheitemsastheyappearon
theSAR,ISIR,paperFAFSA,andFAAAccesstoCPSOnline.AsofthedatetheFAFSAformissigned,itisconsidereda
“snapshot”ofthefamily’sinformationthatcanbeupdatedonlyincertaincircumstancesandonlyforcertainitems;see
Chapter4.
ThefollowingsectionsdiscussmanyoftheimportantquestionsfoundwithineachStepontheFAFSAform.
StepOne:GeneralStudentInformation
Thisstepidentifiesthestudentandestablisheshisorheraideligibilitybasedonfactorssuchascitizenshipand
educationallevel(seealsoVolume1:StudentEligibility).QuestionsinStepOneareincludedtohelptheschoolpackage
awardsandtoeliminatetheneedforstudentstofilloutaseparatestateorschoolfinancialaidform.
Pleasenote:AsdescribedinDearColleagueLetterGEN-21-04,theFAFSASimplificationActeliminatedtheprohibitionon
receivingTitleIVaidforstudentswithdrug-relatedconvictionsandtherequirement,forTitleIVeligibilitypurposes,that
malestudentsregisterwiththeSelectiveServicesystembeforetheageof26.TheDepartmentbeganimplementing
thesechangesstartingwiththe2021-2022awardyear.Forthe2022-2023awardyear,thoughinstitutionswillstillsee
CommentCodes30,33,or57forSelectiveServiceissuesandCodes53,54,56,or58fordrugconvictions,failingto
registerwiththeSelectiveServiceorhavingadrugconvictiondoesnotimpactastudent’sTitleIVaideligibilityandmust
beignoredbytheinstitution.Inaddition,forthe2022–2023awardyear,theDepartmentwillincludelanguageinthe
CommentCodesstatingthatnofurtheractionisnecessaryonthepartofthestudentortheinstitution.
Student’sname(1–3).Thename,withotheridentifyinginformation,isusedforseveraldatamatches.Becausethe
U.S.DepartmentofEducation(ED)matchesthestudent’snameandSocialSecuritynumber(SSN)withtheSocial
SecurityAdministration(SSA),thenamehereshouldmatchtheoneintheSSA’srecords,i.e.,asitappearsonthe
student’sSocialSecuritycard.
Permanentmailingaddress(4–7).Thisisthestudent’spermanenthomeaddress,withtwoexceptions:
incarceratedstudentsshouldusetheaddressofthefacilitytheyarein,andhomelessyouthshoulduseamailing
addresswheretheycanreliablyreceivemail.Thatcanbetheaddressofarelativeorfriendwhohasgiventhem
permissiontouseit,oritcanbetheirschool’saddressaslongastheyhavecontactedtheschoolforpermissionand
instructionsonhowmailtheyreceiveattheschoolwillreachthem.Assoonasincarceratedandhomelessstudents
havemorepermanenthousing,theyshouldupdatetheiraddressontheFAFSAform.
Student’sSSN(8).StudentsmusthaveanSSNtoapplyforfederalstudentaidexceptasnotedbelow.Ifthey
submitFAFSAinformationwithoutanSSN,theFAFSAformwillbereturnedunprocessed.TogetanSSNortofindout
whatthenumberisiftheylosttheirSocialSecuritycard,theymustcontactthelocalSSAoffice.ContacttheSSAat
1-800-772-1213orhttps://www.ssa.gov/ssnumber/formoreinformation.
StudentswhoenterthewrongSSNontheirFAFSAformcancorrectitinafewways:throughtheschool,by
submittingacorrectedpaperSAR,orbyfilinganewFAFSAform.Iftheydon’thaveacopyoftheirSAR,theycancall
theFederalStudentAidInformationCenter(1-800-433-3243)andhaveonesenttothem,whichtheycancorrectand
mailtotheaddressontheSAR.However,correctingtheSSNthroughtheschoolorwiththeSARwillnotchangethe
numberinthestudent’sidentifier;thatwillremaintheoriginalSSNandmaylatercauseconfusion.Completingand
submittinganewFAFSAformsolvesthisproblem.Notethatthereareotherrareinstanceswhereastudentmust
submitaspecial“correctionapplication.”SeetheJune22,2017,announcement.
PersonsfromtheFreelyAssociatedStates(FAS)—theRepublicoftheMarshallIslands,theFederatedStatesof
Micronesia,andtheRepublicofPalau—typicallydonothaveSSNs.StudentswhoarecompletingaFAFSAformfor
thefirsttimeandwhoindicatethattheirstateoflegalresidenceisoneoftheabovePacificislandgroupsshould
enter“666”asthefirstthreedigitsoftheirSSNfieldandleavetheremainingsixdigitsblank.CPSwillthenassign
themanidentificationnumber.StudentsfromtheFASwhohavesubmittedaFAFSAformbeforeandwereissued
suchapseudo-SSNwillenteritintheSSNfield.Itisimportantthattheyusethesamenumberonall
subsequentFAFSAsbecauseitallowsformoreaccurateinformationonPellGrantLifetimeEligibilityUsed(LEU).
Ifastudentdoesnotusethesamepseudo-SSNacrossawardyears—ifonasubsequentFAFSAformheorsheeither
getsanewpseudo-SSNandusesthatorifheorsheusesarealSSNthatheorsheobtainedfromtheSSA—the
schoolmustcontacttheCODSchoolRelationsCentersothemultiplestudentrecordscanbemergedintooneand
thecorrectLEUcanbecalculated.Also,ifPacificislandstudentsfilewitharealSSN,schoolswillneedtohavean
alternateway,otherthanthepseudo-SSN,ofidentifyingthatpopulationtoensurethatthecorrectawardlimitations
describedinVolume1,Chapter2oftheHandbookareinplaceforthosestudents.
Student’semailaddress(13).Ifthestudentprovidesthisaddress,heorsheshouldgetanemailwithalinktohis
orheronlineSARdatawithinonetothreedaysaftertheCPSreceiveshisorherapplication.TheDepartmentwill
alsousethisemailaddresstocorrespondwiththestudentregardinghisorherapplication.
Citizenshipstatus(14).ExamplesofeligiblenoncitizencategoriesaregivenintheFAFSAinstructions,anda
detaileddiscussionofcitizenshipissuescanbefoundinVolume1:StudentEligibility.OnlyU.S.citizensorcertain
classesofnoncitizensareeligibleforTitleIVaid;however,otherstudentscanstillsubmittheFAFSAbecausethey
mightbeeligibleforaidfrominstitutional,state,orprivatesourcesthatdonothavethesamerequirementsbutuse
FAFSAinformation.
Student’smaritalstatus(16and17).Thisismaritalstatus“asoftoday”—thedaytheapplicationissigned.
Maritalstatuscannotbeprojected.Itcanbeupdatedinlimitedcircumstances;seeChapter4.
Same-sexmarriageandtheFAFSAform—In2013,inUnitedStatesv.Windsor,theSupremeCourtruledthat
Section3oftheDefenseofMarriageAct(DOMA)wasunconstitutionalbecauseitviolatestheprinciplesofdue
processandequalprotection.Asaresult,same-sexcoupleswhohavemarriedinadomesticorforeignjurisdiction
thatrecognizesthemarriageshouldcompletetheFAFSAasamarriedcoupleregardlessofwhetherthejurisdictionin
whichtheyresideorthestudentattendsschoolrecognizesthemarriage.Thisappliestoindependentstudentsandto
theparentsofdependentstudents.SeeDCLGEN-13-25formoreinformation.
Student’sstateanddateoflegalresidence(18–20).Thisisusedtofiguretheallowanceforstateandother
taxesfortheEFCcalculation.
Italsoindicateswhichstateagencyshouldreceivethestudent’sFAFSAinformation.Stateshavevaryingcriteriafor
determiningwhetherthestudentisaresidentforpurposesoftheirfinancialaid.However,residinginonestatefor
fiveyearswillmeetanystate’scriteria.Therefore,apersonanswering“Yes”toQuestion19willlikelymeetthe
residencyrequirementsofthestatereportedinQuestion18,whilethestateeligibilityforapersonanswering“No”
willdependonthedatereportedinQuestion20andthestate’srequirements.
Student’sgenderandSelectiveServiceregistration(21–22).Priortothe2021–2022awardyear,male
students(i.e.,thosewhowereassignedthesexofmaleatbirth)neededtohaveregisteredwiththeSelective
ServiceSystem(SSS)tobeeligibleforfederalstudentaid.TheDepartmentconductsamatchwiththeSSStoverify
thisrequirement.
However,asdescribedinDearColleagueLetterGEN-21-04,theFAFSASimplificationActeliminatedtherequirement,
forTitleIVeligibilitypurposes,thatmalestudentsregisterwiththeSelectiveServicesystembeforetheageof26.
TheDepartmentbeganimplementingthischangestartingwiththe2021–2022awardyear.
Forthe2022–2023awardyear,thoughinstitutionswillstillseeCommentCodes30,33,or57forSelectiveService
issues,failingtoregisterwiththeSelectiveServicedoesnotimpactastudent’sTitleIVaideligibilityandmustbe
ignoredbytheinstitution.Inaddition,forthe2022–2023awardyear,theDepartmentwillincludelanguageinthe
CommentCodesstatingthatnofurtheractionisnecessaryonthepartofthestudentortheinstitution.Formore
informationaboutthisstudenteligibilitymodification,pleaseseeVolume1,Chapters1and5.
Convictionforpossessingorsellingillegaldrugs(23).Priortothe2021–2022awardyear,studentsconvicted
ofafederalorstateoffenseofsellingorpossessingillegaldrugsthatoccurredduringaperiodofenrollmentwhile
theywerereceivingfederalstudentaidcouldloseaccesstoTitleIVfundingbutwerestillencouragedtocomplete
andsubmittheFAFSAformbecausetheymaybecomeeligibleforfederalaid,andeveniftheyarenoteligible,they
maybeeligibleforstateorinstitutionalaid.
AsdescribedinDearColleagueLetterGEN-21-04,theFAFSASimplificationActeliminatedtheprohibitionon
receivingTitleIVaidforstudentswithdrug-relatedconvictions.TheDepartmentbeganimplementingthischange
startingwiththe2021–2022awardyear.
Forthe2022–2023awardyear,thoughinstitutionswillstillseeCommentCodes53,54,56,or58fordrug
convictions,havingadrugconvictiondoesnotimpactastudent’sTitleIVaideligibilityandmustbeignoredbythe
institution.Thismeans,regardlessofhowthestudentanswersquestion#23ontheFAFSAform,thestudent’sTitle
IVeligibilitywillnotbeaffectedbyhavingadrugconviction.Forthe2022–2023awardyear,theDepartmentwill
includelanguageintheCommentCodesstatingthatnofurtheractionisnecessaryonthepartofthestudentorthe
institution.
Formoreinformationaboutthisstudenteligibilitymodification,pleaseseeVolume1,Chapters1and5.
Highestlevelofschoolcompletedbystudent’sparents(24and25).Somestateagenciesusethis
informationtoawardgrantsandscholarships.Fatherandmotheraredefinedhereasthestudent’sbirthoradoptive
parentsbutnotstepparents,guardians,orfosterparents.Thisdefinitionisuniquetothesequestions—allothersuse
thedefinitionfoundunderthe“WhodoesanddoesnotcountasaparentontheFAFSAform”sectiondescribedlater
inthischapter.
IRSDataRetrievalTool
TheIRSDataRetrievalTool(DRT)allowsstudentsandparentswhousetheonlineFAFSAortheFAFSAfeatureof
myStudentAidmobileappandwhohavealreadysubmittedtheirfederaltaxreturntoelectronicallyretrievetheir
taxdatafromtheIRSdatabase.TheISIRwillshowthatdatawasimportedandifitwasaltered.Allstudentsand
parentsofdependentstudentswhoindicateontheapplicationthattheyhavealreadyfiledafederaltaxreturn
andwhoareotherwiseeligibletousetheDRTwillbedirectedtodoso.
TheDRTwillautomaticallyanswerthequestionaboutwhetherornotataxfilerfiledaSchedule1.Theanswerwill
bebasedonallcurrentexceptionsforfilingaSchedule1andthetransferreddatafortheSchedule1fieldswillbe
handledthesameasotherdatatransferredusingtheIRSDRT.
Theactualvaluesoftheimporteddataarenotviewablebystudentsandparents(thoughtheystillappearonthe
ISIR).Thisistoenhancesecurityandprivacyandtopreventthemisuseofsensitivedata.Becauseaidofficersand
otherofficialswillbeabletoseethetransferreddata,andinkeepingwiththeexpectationthattheyprotectthe
confidentialityofdataassociatedwiththeTitleIVprograms,theymustnotdiscloseincomeandtaxinformation
fromtheFAFSAformwiththeapplicant,theapplicant'sspouse,ortheapplicant'sparentsunlesstheycan
authenticatetheiridentity.Forexample,astudentappearinginpersonandpresentinganunexpired,valid,
government-issuedphotoIDsuchasadriver’slicensewouldbeaneffectivewaytoauthenticatehisorher
identity.SeetheSeptember5,2017,announcementformoreinformation.
AsaresultofIRSdatabeingmasked,studentsandparentswillnotbeabletochangeitontheFAFSA;the
financialaidofficewillneedtomakecorrections.Also,rolloverswillbehandleddifferently.IftheDRTtransfersa
non-zeroamountintotheuntaxedpensionorindividualretirementaccount(IRA)distributionfield,theapplicant
willbeaskedifanyofitisduetoarollover.Ifheorsheanswersyes,heorshewillthenentertherollover
amount,whichtheCPSwillsubtractwhencalculatingtheEFC.Andbecauseofthedatamasking,studentsand
parentswhofileajointtaxreturnwillnotbeabletotransfertheirincomeearnedfromworkbutwillhaveto
manuallyenterthoseamounts.Theincomeearnedfromworkofsinglepersonswill,however,continueto
transfer.SeetheAugust7,2017,announcement.
Highschoolcompletionstatus(26).Thestudentindicatesoneofthefollowing:highschooldiploma,General
EducationalDevelopment(GED)certificateorstatecertificate,homeschooled,ornoneoftheabove.Noneofthe
aboveincludesthosewhohavetherecognizedequivalentofahighschooldiploma(asdefinedin34CFR600.2)
otherthanaGEDcertificateorastatecertificateorwhomayqualifyundertheAbility-to-Benefit(ATB)alternatives;
seeVolume1,Chapter1,foranexplanationofthoseoptions.Typicallyaforeignsecondaryeducationcredential
countsasahighschooldiploma;seeFHD-Q1ontheprogramintegritywebsite.
Astatecertificateiswhatstudentsreceiveafterpassinga“stateauthorizedexamination,”asreferredtoin34CFR
600.2.ThisincludestestscomparabletotheGED—i.e.,thosecreatedanddistributedbyatestpublisher—suchas
theHighSchoolEquivalencyTest(HiSET)ortheTestAssessingSecondaryCompletion(TASC),aswellasthose
establishedbystates,forexample,theCaliforniaHighSchoolProficiencyExam(CHSPE).Californiaconsidersa
passinggradeontheCHSPEtobeequivalenttoadiploma.
Highschool(27).Thisquestionasksforthenameofthehighschoolwherethestudentreceivedorwillreceivehis
orherdiploma,aswellasthecityandstate(orFCforforeigncountry)whereitislocated.OntheFAFSAwebsite,the
studentcanchoosethenamefromthedropdownlist,or,ifitisnotonthelist,thestudentwillentertheschool
name,city,andstatedirectlyontheFAFSAform.SeeVolume1,Chapter1,regardingaschool’spolicyabout
checkingthevalidityofahighschooleducation.
WhentheISIRshowsanIRSRequestFlagvalueof06or07,schoolswillneedtocontactthestudentorparent.A
valueof06indicatesthataftertheDRTwasusedandtheFAFSAwassubmitted,thestudentorparentchangedan
itemontheFAFSA(e.g.,thedateofmarriage)thatwouldhavemadethepersonineligibletousetheDRT.The
schoolmustcontactthestudentorparenttodetermineifallofthetransferreddatawascorrectorifitneedsto
becorrected.Avalueof07isanindicationfromtheIRSthatthestudentorparentusedtheDRTbutalsohasfiled
anamendedtaxreturnfortherelevantyear(includesamendedreturnsgeneratedbyIRSadjustments).Because
thedatathatwastransferredwillbefromtheoriginalreturnandnottheamendedone,theschoolmustcontact
thestudentorparentandmakeanyapplicablecorrectionstoFAFSAitems,regardlessofwhethertheapplication
wasselectedforverification.
TheISIRwilldisplayIRSDataFieldflagsthatindicateifanyindividualitemwastransferredfromtheIRSandifit
wassubsequentlychanged.Aflagvalueof1willindicatethattheitemwastransferredandwasnotchanged.
Suchitemsdonotneedtobeverifiedifthestudentisselectedforverification.However,whenthereisaRequest
Flagvalueof06or07,theaboveguidancemustfirstbefollowed.TheAugust7announcementhasmore
information.
AlsoduetotheIRSdatamasking,therearetwocommentcodesthatschoolsmustrespondto:code400for
parentsand401forstudents.WhenanISIRindicateseitherofthesecodes,theschoolmustchecktheFAFSAto
seeifanyofthefollowingconditionsexistandmakenecessarycorrections:
1. ThestudentorparentisataxfilerandtheAGItransferredfromtheIRSiszero,butthetotalincomeearned
fromworkisgreaterthanzero.
2. Thetotalofthetaxableincomeoffsets(seethe“taxableincomeoffsetssectionlaterinthischapter)forthe
studentorparentsisgreaterthantheAGItransferredfromtheIRS.
3. Anyoftheuntaxedincomeitems(seethe“Untaxedincome”sectionlaterinthischapter)forthestudentor
parentisgreaterthanorequaltotheAGItransferredfromtheIRS.
Theschoolmayneedtocontactthestudentorparentforanexplanationofoneoftheaboveconditionsandto
determineifanyoftheassociatedFAFSAitemsneedtobecorrected.Also,commentcodes400and401canbe
consideredresolvedif(V1orV5)verificationiscompletedforthesameISIR.Again,seetheAugust7
announcementformoreinformation.
Definitions
Firstbachelor’sdegree(28).Thestudentindicateswhetherheorshewillhaveafirstbachelor’sdegreebefore
beginningthe2022–2023yearbecauseeligibilityforPellandFederalSupplementalEducationalOpportunitygrants
(FSEOGs)isalmostexclusivelyrestrictedtostudentswhohavenotreceivedabachelor’sdegreeorcompletedthe
requirementsforone.See“PellGrants”inChapter6ofVolume1regardingdegreesfromunaccreditedandforeign
schools,whichcancountasbachelor’sdegreesforPellandFSEOGeligibility.
Student’scollegegradelevelatthestartoftheschoolyear(29).Thisisnotbasedonthenumberofyears
thestudenthasattendedcollegebutonworkcompletedtowardthedegree/certificate.Forinstance,afull-time
studentmightattainsecond-yeargradelevelafteroneyearofstudy,whileahalf-timestudentwouldtaketwoyears
toreachthatlevel.
Interestinwork-study(31).ThestudentindicateswhetherheorsheisinterestedinreceivingFederalWork-Study
(FWS).Thishelpstheschoolinpackagingthestudent'saward.IfthestudentisunsureaboutwantingFWS,heorshe
shouldanswer“don’tknow”tostillbeconsideredforit;laterheorshecandeclineanyaidheorshedoesnotwant.
Undergraduatestudent—Onewhoisenrolledinaprogramthatusuallydoesnotexceedfouracademicyearsor
alongerprogramthatleadstoafirstdegreeatthebaccalaureatelevel.Studentsinprogramslongerthanfive
yearsareconsideredundergraduatesforonlythefirstfouryears.
FortheFSEOG,Pell,andTEACHGrantprograms,astudentisanundergraduateonlyifheorshehasnotearned,
orcompletedtherequirementsfor,abachelor’sorprofessionaldegree.Studentsenrolledinapostbaccalaureate
programasdescribedin34CFR686.2(d)and690.6arestillundergraduatesforreceivingTEACHandPellgrants
butnotFSEOG.
Studentsindualdegreeprogramsthatconferabachelor’sdegreeandeitheragraduateorfirstprofessional
degreeareundergraduatesforatleastthefirstthreeyearsoftheprogram.Theschooldeterminesatwhatpoint
afterthreeyearstheyceasetobeundergraduates.[34CFR668.2(b)]
Graduateorprofessionalstudent—Onewho(1)isnotreceivingaidasanundergraduateforthesameperiod
ofenrollment;(2)isenrolledinaprogramabovethebachelor’sdegreeleveloroneleadingtoaprofessional
degree;and(3)hascompletedtheequivalentofatleastthreeyearsoffull-timestudy,eitherbeforeentranceinto
theprogramoraspartofit.
Measuredincredithours,threeyearsoffull-timestudymustbeatleastthreetimestheannualminimumforfull-
timestudy:72(24x3)semesterortrimesterhoursor108(36x3)quarterhours.[34CFR668.2(b)]
Simplifiedneedstest—Thelawprovidesa“simplifiedEFC”calculationforastudentwhomeetscertainincome
andtaxfilingrequirements.IftheapplicantiseligiblebasedontheinformationontheFAFSAform,theCPSwill
automaticallyexcludeassetsfromtheEFCcalculation.However,somestatesandschoolsrequirethisinformation
fortheirownaidprograms.
NoincomereportedontheFAFSAform
Occasionallyanapplicantwillreportnoincomeforthebaseyear.Thiscanoccurwhenthefamilyhastaxwrite-
offsthatproduceanegativeAGIorwhentheapplicantneglectedtoreportuntaxedassistance.IftheCPSdoesnot
selectthestudentforverification,youmaystillchoosetoaskhimorherforfurtherinformationabouthisorher
meansofsupportduringthebaseyear.Also,youmayuseprofessionaljudgment(PJ)toadjusttheincomeline
itemstoreflectincomethefamilyreceivesthatdoesn’tappearonthetaxreturn.
Anycashsupportforthestudent,otherthansupportfromaparentforadependentstudent,countsasuntaxed
incomeandmustbereported.In-kindhelp(seethe“Incomeandbenefitsnottobeincluded”sectionlaterinthis
chapter)fromafriendorrelativeisnotconsidereduntaxedincomeandwouldnotappearontheFAFSAform,
however,youmayusePJtoaccountforthevalueofthatin-kindsupportintheCOA.Forexample,youcould
adjusttheroomandboardcomponentoftheCOAforastudentwholiveswithhisorherauntandeatsmealswith
hisorherfamily.
StepsTwoandFour:IncomeandAssets
StepTwo(questions32–44)askforthestudent’sandspouse’sincomeandassets[HEASec.480(a),(b),(f),(g)].StepFour
(questions58–92)collectssimilarinformationaboutparentincomeandassets,sothefollowingdiscussionalsoappliesto
parentsaswell.
Ifthestudentorhisorherparentwasnotmarriedin2020butismarriedwhentheapplicationissigned,thestudentalso
needstoprovideincomeandassetinformationforthenewspouse.Ifthestudentortheirparentwasmarriedin2020but
isseparated,divorced,orwidowedwhentheapplicationissigned,thestudentorparentexcludestheincomeandassets
forthatspouseeventhoughtheinformationmaybeonthe2020taxforms.
TheFAFSAformasksforincomeandtaxespaidaccordingtolinesontheIRStaxformsfor2020,the“baseyear”for
2022–2023.Datafromthecompletedtaxyearisusedasapredictorofthefamily’sfinancialsituationforthecurrentyear.
Intherareinstancethat2020taxdataisnotavailableyet,bestestimatescanbeusedontheapplication.However,the
studentisaskedtocorrectthisinformationlaterwhenthetaxreturnisfiled.
InformationfromtheincometaxreturnsrequiredbythetaxcodesoftheCommonwealthofPuertoRico,Guam,American
Samoa,andtheU.S.VirginIslandsisreportedontheFAFSAforminthesamemannerasU.S.taxinformation,andcopies
oftheseformscanbeusedforverificationinthesamewayasU.S.taxformsare.AmountsarealreadyreportedinU.S.
dollars,andtheschoolshouldlookattaxreturnlineitemsthatarecomparabletotheIRSlineitemsforverification.
WhenastudentorparenthasreturnsfrombothaforeignnationandtheUnitedStatesforthesametaxyear,theyshould
usethedatafromtheU.S.returnwhenfillingouttheFAFSAform.
TheFAFSAapplicationalsocollectsinformationforcertaininvestmentsandotherassets.Applicantsonlyreportthenet
worthofassetsinsteadofreportingthevalueanddebt.Theyshouldreportassetamountsasofthedatethe
applicationissigned.
Taxreturnfiledandtaxfilingstatus(32–35,79–82forparents).Thesequestionsaskifa2020taxreturnwas
completed,whichreturnwasorwillbefiled,whatthefilingstatuswasorwillbe,andwhetherthestudentorparents
filedaSchedule1ordidsoonlytoclaimoneormoreofthefollowing:unemploymentcompensation,anAlaska
Marriedfil ingseparately
Whenastudentandspouseoradependentstudent’sparentsfileseparateanddifferenttypesofreturns,what
typeshouldbeindicatedinQuestion33or80?Insuchcases,IRSForm1040andforeigntaxreturnsare
consideredcomparableandtakeprecedenceovertaxreturnsfromthefiveinhabitedU.S.territories:PuertoRico,
Guam,theU.S.VirginIslands,theNorthernMarianaIslands,andAmericanSamoa.Forexample,ifastudentfiled
aforeignreturnandhisorherspousefiledaPuertoRicanreturn,thestudentwouldanswerforeigntaxreturnfor
question33.Whencomparablebutdifferentreturnsarefiled,theIRSreturntakesprecedenceandisindicated.If
theabovestudentfileda1040returnandhisorherspousefiledaforeignreturn,thestudentwouldanswerIRS
1040tothequestion.
Ifonespousefilesseparatelyandtheotherdoesnotfileareturnbuthassomeincome,howdoyoufigurethe
AGI?Addtheincomeearnedfromwork(e.g.,earningsfromtheW-2formoranyotherearningstatements)ofthe
spousewhodoesnotfileareturntotheAGI(asgivenonline11ofForm1040)ofthespousewhodoesandenter
thesumontheappropriateAGIlineoftheFAFSA.
EFAornot?
Sometimesitisdifficulttoaccountforanoutsidefinancialaward.Ifastudentreceivestheawardbecauseof
postsecondaryenrollment,itcountsasestimatedfinancialassistance(EFA)ifitisnotconsideredwagesfor
employmentaccordingtofederalorstaterules,orifitisconsideredwagesandisbasedonneed.Anyamount
thatappearsasincomeonthetaxreturnwillalsobeincludedontheappropriatelineofitem43or91onthe
2022–2023FAFSAform.Iftheawardisconsideredwagesforemploymentbutisnotbasedonneed,thenitisnot
EFAanditremainsinincome.
PermanentFunddividend,educatorexpenses,anIRAdeduction,orthestudentloaninterestdeduction.Theanswers
areusedinparttoidentifyifthestudentiseligibleforthesimplifiedneedstestortheautozeroEFCandtofind
inconsistenciesbetweentheFAFSAformandthetaxreturn.
Adjustedgrossincome(AGI),incometax,andincomeearnedfromwork(36–39,84–87forparents).
Theseitemsarereportedfordependentstudents,theirparents,andindependentstudents.Eachquestiongivesthe
linereferencetothe2020IRStaxforms.
ThoughstudentsandparentsmaymanuallyentertheirIRSdataintheFAFSA,theyarestronglyencouragedto
transferitwiththeDRTbecausethatmethodisaccurate,efficient,andusefulforverification.
Thosewhofileajointreturnandthenaredivorced,separated,orwidowedbeforetheapplicationissignedwon’tbe
Qualifiededucationbenefits
Qualifiedtuitionprograms(QTPs,alsoknownassection529plansbecausetheyarecoveredinsection529ofthe
IRStaxcode)andCoverdelleducationsavingsaccountsaregroupedtogetherinthelawasqualifiededucation
benefitsandhavethesametreatment:theyareanassetoftheowner(notthebeneficiarybecausetheownercan
changethebeneficiaryatanytime)exceptwhentheownerisadependentstudent,inwhichcasetheyarean
assetoftheparent.Whentheownerissomeotherperson(includinganoncustodialparent),distributionsfrom
theseplanstothestudentcountasuntaxedincome,as“moneyreceived.”Whenaparentownsaplanforachild
andtheparentisfilingaFAFSAapplicationasastudentforhimselforherself,theplancountsasanassetonthe
parent'sFAFSAform.
States,theiragencies,andsomecollegessponsorqualifiedtuitionprograms.TheIRSmentionstwotypesofQTPs
thatarecommonlycalledprepaidtuitionplansandcollegesavingsplans.Statesmayofferbothtypes,but
collegesmayonlysponsorprepaidtuitionplans.
Prepaidtuitionplansallowapersontobuytuitioncreditsorcertificates,whichcountasunitsofattendance.The
numberofunitsdoesn’tchangeeventhoughtuitionwilllikelyincreasebeforethebeneficiarygetstousethe
tuitioncredits.Theyareanassetoftheplanowner,andtheirworthistherefundvalueofthecreditsor
certificates.
Collegesavingsplansallowabenefactortodepositmoneyintoanaccountthatwillbeusedforthebeneficiary’s
collegeexpenses.Thebuyerdoesnotpre-purchasetuitioncreditsaswithaprepaidtuitionplan.Rather,thistype
ofplanisessentiallyasavingsaccount,anditsvalueasanassetisthecurrentbalanceoftheaccount.
Coverdelleducationsavingsaccounts,orESAs,areanothertax-advantagedsavingsvehicleforcollegeeducation.
Theyaretreatedthesameascollegesavingsplans:thecurrentbalanceisanassetoftheaccountowner.
AslongasdistributionsfromQTPsandESAsdonotexceedthequalifiededucationexpensesforwhichtheyare
intended,theyaretax-free,sotheywillnotappearinthenextyear’sAGI.Theyshouldnotbetreatedasuntaxed
income(exceptinthecasesmentionedabove)orasestimatedfinancialassistance.Formoreinformationon
thesebenefits,seetheIRS’sPublication970,TaxBenefitsforEducation.
Reporting“take-back”mortgages
Inatake-backmortgage,thesellerofahousefinancesaportionofitscostforthebuyer,whorepaysthis
additionalmortgagetotheseller.Thesellerreportstheinterestpartofanypaymentsreceivedfromthebuyeron
ScheduleBofIRSForm1040.Therefore,ifastudentorhisorherparentsreportsuchinterestonthetaxreturn,it
likelyindicatesanassetthatshouldbereportedontheFAFSAform:thevalueofthetake-backmortgage.There
wouldbenodebtreportedagainstthisasset.Forexample,ifadependentstudent’sparentssoldtheirhousefor
$200,000andfinancedatakebackmortgageof$40,000tothebuyer,theparentsshouldreport$40,000asthe
networthoftheinvestment.Theworthwilldecreaseeachyeardependingonhowmuchoftheprincipalthebuyer
paidbackthatyear.Thisconceptappliestootherformsofsellerfinancingofthesaleofahomeorotherproperty.
abletosimplycopytheinformationfromthetaxformsortransferdatawiththeDRT.Instead,theymustfigureout
howmuchoftheincomeandtaxespaidisattributabletothemandnottheirspouse.Formoreonthiscalculation,
see“UsingajointreturntofigureindividualAGIandtaxespaid”inChapter4.
Ifthestudent,spouse,orparentswerenotrequiredtofileataxreturn,thestudentshouldstillreportanyincome
earnedfromworkinquestions38–39(studentandspouse)andquestions86–87(parents).TheW-2formandother
recordsofworkearningsshouldbeusedtodeterminetheseamounts.Donotincludecombatpay;becauseitisnot
countedasuntaxedincomeandisremovedfromtheAGIwhenitistaxable,itshouldnotbeincludedintheincome
earnedfromwork.
TheFAFSAforminstructstheapplicanttoaddline1ofthe1040formtolines3and6ofSchedule1andbox14(code
A)ofScheduleK-1(Form1065)asanoptionfordeterminingtheincomeearnedfromwork.Butwhenthevaluesof
lines3or6orbox14arenegative,thiswillreducethetotalandcanwronglyaffecttheSocialSecurityallowance.If
valuesfromlines3or6orbox14arenegative,treatthemaszerowhendeterminingtheincomeearnedfromwork.
IncomeearnedfromworkisusedtocalculateallowancesfortheSocialSecurityandMedicaretax(akatheFederal
InsuranceContributionsActorFICAtax)andfortheaddedcostsincurredbytwoworkingspouses.Fornon-taxfilers
itwillalsobeusedinplaceofAGIandwillcausetheapplicationtoberejectedifitisabovethetaxfilingthreshold.
Forafiscalyear(ratherthancalendaryear)taxreturn,informationshouldbeusedfromthereturnthatincludesthe
greaternumberofmonthsin2020.
Example:Owen’sparentsfileafiscalyeartaxreturn.TheirfiscalyearbeginsinSeptember.Thereturntheyfiledfor
thefiscalyearstartinginSeptember2019includeseightmonthsin2020.Thereturntheyfiledforthefiscalyear
startinginSeptember2020onlyincludesfourmonthsof2020.Therefore,theyshouldusetheinformationfromthe
returnforthefiscalyearthatbeganinSeptember2019.
IfthestudentorparentsfiledataxreturnusingsomethingotherthananIRSform,suchasaforeignorPuertoRican
taxform,thestudentshouldreportontheFAFSAformtheamounts(convertedtoU.S.dollars)fromthelinesofthe
formthatcorrespondmostcloselytothoseonthecommonIRSforms.
Non-taxfilers,foreigncountries,andinternationalorganizationsInsomecountriesthetaxsystemdoesnot
operateasitdoesintheU.S.,andpeopleinthosecountriescanearnasubstantialamountofincomeandpaytaxes
withouthavingtofileareturn.Insuchacasethepersonwouldcorrectlyindicatethatheorshedidnotfileatax
return,andnothingwillbereportedforAGIorincometaxpaid.Whenthathappens,heorsheshouldreportanynet
incomethatisearnedfromworkinQuestion38,39,86,or87,asappropriate,oftheFAFSAformandnotasuntaxed
incomeinQuestion44hor92h,whichiswhereuntaxedforeignincomenotearnedfromworkshouldbereported.
ThisensuresthattheincomeisproperlyincludedintheEFCcalculation;fornon-taxfilers,incomeearnedfromwork
isusedinplaceoftheAGIandtodetermineeligibilityforthesimplifiedneedstest(SNT)andautomaticzeroEFC.
Asnotedearlier,whenincomeearnedfromworkexceedstheU.S.taxfilingthresholdandthepersonindicatesheor
sheisnotgoingtofileareturn,theFAFSAformwillberejected.TheaidofficemustoverridetherejectinFAAAccess
toCPSOnlinesothatanEFCwillbegenerated.
Whathappenswhenonespousefilesareturnbuttheotherspousedoesnotfileareturnbuthasforeignearned
incomeasdescribedabove?Becauseonespousefiledareturn,theFAFSAformshouldindicateinQuestion33or80
whatreturnwasorwillbefiled,andtheCPSwillusetheAGIforincomeandtodetermineeligibilityfortheSNTand
auto-zeroEFC.Asabove,theforeignincomeisstillreportedasincomeearnedfromwork,butitisalsoaddedtothe
AGIofthetaxfilingspouse,asourguidanceinstructsunderthe“marriedfilingseparately”sectiondescribedearlier
inthischapter.
Insomeinstances,employeesofcertaininternationalorganizations,suchastheUnitedNations,theInternational
MonetaryFund,theWorldBank,andothers,mightnotberequiredtofileareturn,whichresultsinsituationssimilar
tothosedescribedabove.Followthesameguidance—anon-taxfilerwillreportincomefromthatemploymentas
incomeearnedfromworkonly,whileapersonwhoismarriedtoataxfilerwillreportitasincomeearnedfromwork
andaddittotheAGIofthetax-filingspouse.
NotethattheguidanceinthissectiondoesnotpertaintotheForeignEarnedIncomeExclusion,whichisreportedon
theU.S.taxreturnandisexcludedfromtheEFCcalculationbytheHEA.
Assets(40–42,88–90forparents).Anassetispropertythatthefamilyownsandhasanexchangevalue.The
FAFSAformcollectscurrentdata(asofthedayofsigningtheFAFSAform)aboutcash,savingsandchecking
accounts,investments,businesses,andinvestmentfarms.Mostassetsareinvestmentssuchascollegesavings
plans,Coverdelleducationsavingsaccounts,realestate,installmentandlandsalecontracts(includingmortgages
held),trustfunds,mutualfunds,moneymarketfunds,UniformGiftsandUniformTransferstoMinors(UGMAand
UTMA)accounts,certificatesofdeposit,stocks,stockoptions,bonds,commodities,andpreciousmetals.Iftheasset
isn’tabusinessorinvestmentfarm,itisreportedasaninvestment.
TheFAFSAformasksforthenetworthofinvestments,whichistheirtotalcurrentmarketvalueminustheir
associateddebts.Iftheirnetworthisnegative,zeroshouldbereported.
Similarly,forabusinessorinvestmentfarm,thecurrentnetworth(thecurrentmarketvalueminusthedebt
owedonit)isreportedforland,buildings,machinery,equipment,livestock,andinventories.Businessorfarmdebt
meansonlythosedebtsforwhichthebusinessorfarmwasusedascollateral.
Rentalpropertiesareanasset.Aunitwithinafamilyhomethathasitsownentrance,kitchen,andbath(therefore
arentedbedroomwouldnotcount)andthatisrentedtosomeoneotherthanafamilymembercountsasanasset.
Tocalculateitsnetvalue,multiplythenetvalueoftheentirestructurebythefractiontherentedspacerepresents.
Similarly,ifafamilyowneda10-unitapartmentbuildingandlivedinoneoftheapartments,9/10or90%ofthenet
valueofthebuildingwouldbeanasset.
Attimesastudentorparentwillclaimrentalpropertyasabusiness.Generally,itmustbereportedasrealestate
instead.Arentalpropertywouldhavetobepartofaformallyrecognizedbusinesstobereportedassuch,andit
usuallywouldprovideadditionalserviceslikeregularcleaning,linen,ormaidservice.
VirtualcurrencysuchasBitcoinisconsideredanasset.Ifastudent,student’sspouse,orparent(asapplicable)
holdsBitcoin,theymustreportitsvalueinU.S.dollars(asofthedaytheFAFSAformiscompleted)asanasseton
theFAFSAform.IfthestudentorparentsellsBitcoinandhasacapitalgainfromthesale,thetaxableportionwillend
upintheAGIfortheyearitisreportedonthetaxreturn,andtheAGIwillthenbeincludedontheassociatedFAFSA
form.FormoreinformationonhowtheIRStreatsvirtualcurrencies,pleaseseetheIRSvirtualcurrencywebpage.
UGMAandUTMAaccounts:TheUniformGiftsandUniformTransferstoMinorsActs(UGMAandUTMA)allowthe
establishmentofanaccountforgiftsofcashandfinancialassetsforaminorwithouttheexpenseofcreatingatrust.
Becausetheminoristheowneroftheaccount,itcountsashisorherassetontheFAFSAform,nottheassetofthe
custodian,whoisoftentheparent.
Excludedassets—thefollowingareNOTreportedontheFAFSAForm:
Possessionssuchasacar,astereo,clothes,orfurniture
Afamily’sprincipalplaceofresidence,evenifitispartofabusiness
Afamilyfarm(includingequipment,livestock,etc.)if
itistheprincipalplaceofresidencefortheapplicantandhisorherfamily(spouseor,fordependent
students,parents),and
theapplicant(orparentsofadependentstudent)materiallyparticipatedinthefarmingoperation
Family-ownedandcontrolledsmallbusinesses(whichcanincludefarms)thathave100orfewerfull-time
orfull-timeequivalentemployees.“Family-ownedandcontrolled”meansthatmorethan50%ofthebusinessis
ownedbypersonswhoaredirectlyrelatedorare(orwere)relatedbymarriage.(Familymembersdonothave
tobecountedinthehouseholdsizeforthisquestion.)
RetirementandlifeinsuranceplansandABLEaccounts.AnABLEaccountisatax-advantagedsavings
accountforadisabledpersonandhisorherfamily;itsvaluedoesnotcountasanassetontheFAFSAform.The
valueofretirementplans—401(k)plans,pensionfunds,annuities,noneducationIRAs,Keoghplans,etc.—alsois
notcountedasanasset,butdistributionsdocountasincome;theyappearintheAGIiftaxableandin
Questions44and92ifuntaxed.Similarly,thecashvalueorequityofawholelifeinsurancepolicyisn’treported
asanasset,butaninsurancesettlementdoescountasincome.
Thefullamountofthedistributionisreported,whetheritwasalumpsumorannualdistribution,anditwill
countastaxableoruntaxedincome,asappropriate.Anexceptiontoreportingpensiondistributionsiswhen
theyarerolledoverintoanotherretirementplaninthesametaxyear(rollover).
ExcludedassetsforNativeAmericanstudents.Thelaw(seeHEASec.479C)excludesreportingany
incomeandassetof$2,000orlessperindividualpayment(anyamountover$2,000isreportedasuntaxed
income)receivedunderthePerCapitaActortheIndianTribalJudgmentFundsUseorDistributionAct.Italso
excludesanyincomereceivedundertheAlaskaNativeClaimsSettlementActortheMaineIndianClaims
SettlementAct.PercapitadistributionsortheproceedsreceivedfromtheLandBuy-BackProgramforTribal
Nations—atribalpurchaseoffractionatedlandsasaresultoftheCobellsettlementundertheClaimsResolution
Actof2010(42U.S.C.1305)—shouldalsobeexcluded.
Reportingtrustfunds
Trustfundsinthenameofastudent,spouse,orparentshouldbereportedasthatperson’sassetonthe
application,generallyevenifthebeneficiary’saccesstothetrustisrestricted.Ifthesettlorofatrusthas
voluntarilyplacedrestrictionsonitsuse,thenthestudentshouldreportitspresentvalueasanasset,as
discussedbelow.Ifatrusthasbeenrestrictedbycourtorder,however,thestudentshouldnotreportit.An
exampleofsucharestrictedtrustisonesetupbycourtordertopayforfuturesurgeryforthevictimofacar
accident.
Howthetrustmustbereporteddependsonwhetherthestudent(ordependentstudent’sparent)receivesorwill
receivetheinterestincome,thetrustprincipal,orboth.Inthecaseofadivorceorseparationwherethetrustis
ownedjointlyandownershipisnotbeingcontested,thepropertyandthedebtareequallydividedbetweenthe
ownersforreportingpurposesunlessthetermsofthetrustspecifysomeothermethodofdivision.
Interestonly
Ifastudent,spouse,orparentreceivesonlytheinterestfromthetrust,anyinterestreceivedinthebaseyear
mustbereportedasincome.Iftheinterestaccumulatesandisnotpaidout,therecipientmustreportanasset
valuefortheinterestheorshewillreceive.Thetrustofficercanusuallycalculatethevalueoftheinterestthe
personwillreceivewhilethetrustexists.Thisvaluerepresentstheamountathirdpersonwouldbewillingtopay
fortheinterestincome.
Principalonly
Thepersonwhowillreceiveonlythetrustprincipalmustreportasanassetthepresentvalueofhisorherrightto
thatprincipal.Forexample,ifa$10,000principalrevertstoadependentstudent’sparentswhenthetrustendsin
10yearsandthestudentisreceivingtheinterest,heorshewouldreporttheinterestreceivedasincomeand
reportasaparentalassetthepresentvalueofhisorherparents’rightstotheprincipal.Thepresentvalueofthe
principalcanbecalculatedbythetrustofficer;it’stheamountthatathirdpersonwouldpayfortherightto
receivetheprincipal10yearsfromnow—basically,theamountthatonewouldhavetodepositnowtoreceive
$10,000in10years.
Bothprincipalandinterest
Ifastudent,spouse,orparentreceivesboththeinterestandtheprincipalfromthetrust,thestudentshould
reportthepresentvalueofbothinterestandprincipal,asdescribedinthediscussionofprincipalonly.Ifthetrust
issetupsothattheinterestaccumulateswithinthetrustuntilitends,thebeneficiaryshouldreportasanasset
thepresentvalueoftheinterestandprincipalthatheorsheisexpectedtoreceivewhenthetrustends.
Ownershipofanasset
Insomecasestheownershipofanassetisdividedorcontested,whichcanaffecthowthestudentreportsthe
asset.
Partownershipofasset
Taxableincomeoffsets(43and91).Thesequestionstotalcertaintypesofincomeandothermoniesthatare
excludedfromincomeintheneedanalysis.TheCPSsubtractstheseexcludedamountsfromtheAGIwhen
calculatingtheEFC.
a.Educationtaxcredits.ThesearetheAmericanOpportunityandLifetimeLearningtaxcredits(AOTCand
LLC);theFAFSAformreferstoSchedule3line3onthe1040form.PartoftheAOTCcanberefundable,thatis,
payabletotaxfilerseveniftheydonotoweanyfederalincometax.Thenonrefundablepartappearsonthe
samelinesofthetaxreturnandtheFAFSAformastheLLC.Therefundableportionappearsonline29ofthe
1040form.ItdoesnotappearonthelinesoftheFAFSAformfortheeducationtaxcredits,nordoesitcountas
untaxedincome.
b.Childsupportpayments.Countpaymentsmadeduring2020becauseofdivorce,separation,orlegal
requirementbythestudent,spouse,orparentwhoseincomeisreportedontheFAFSAform.Don’tinclude
supportforchildreninthehousehold.Also,don’tcountchildsupportreceivedforachildinthehouseholdsize;
thatappearsasuntaxedincomeonline44cor92c.
Example:Stevenandhiswifeeachhaveachildfromapreviousrelationshipwhodoesnotlivewiththemand
forwhomtheypaychildsupport.BecauseStevenprovidesoverhalfofhisdaughter’ssupportthroughhis
payments,hecountsherinhishouseholdsize.Therefore,hedoesn’treporttheamountofchildsupporthepays
onhisFAFSAform.Steven’swifeisn’tprovidingoverhalfofherson’ssupport,soheisn’tincludedinSteven’s
householdsize.Therefore,Stevencanreporttheamountofchildsupporthiswifepays.
c.Taxableearningsfromneed-basedworkprograms.ThisincludesearningsfromFederalWork-Studyand
need-basedemploymentportionsoffellowshipsorassistantships.ThestudentusesW-2sorotherrecordsheor
shereceivedforthisincome.
d.Studentgrantandscholarshipaid.Astudentreportsonlytheamountofgrantsandscholarships
receivedthatwasreportedastaxableincomeonthereturn.Thisincludesgrantandscholarship(not
employment)portionsoffellowshipsandassistantships,aswellastaxablestipendsandemployertuition
reimbursements.IncludealsoAmeriCorpsbenefits(awards,livingallowances,andinterestaccrualpayments)
exceptthoseforhealthcareorchildcare.Thefilerusuallywritesthetaxableamountofthegrantorscholarship
separatelyonthetaxformnexttothelinewherewagesandotherearningsarereported.Iftheamountwas
reportedthisway,thestudentcancopyitfromthetaxform.
Reimbursementsandstipends—Employersoftenhelpwitheducationcostsbypayingstipendsor
reimbursingemployeesforclassestaken.Thesebenefitscountasestimatedfinancialassistance(orreducethe
costofattendance)eveniftheyaren’treceiveduntiltheendoftheclass(es)andarecontingentonearninga
Iftheparentorstudenthasonlypartownershipofanasset,thestudentshouldreportonlytheownedpart.
Generally,thevalueofanassetanddebtsagainstitshouldbedividedequallybythenumberofpeoplewhoshare
ownershipunlesstheshareoftheassetisdeterminedbytheamountinvestedorthetermsofthearrangement
specifysomeothermeansofdivision.
Contestedownership
Assetsshouldn’tbereportediftheownershipisbeingcontested.Forinstance,iftheparentsareseparatedand
can’tsellorborrowagainstjointlyownedpropertybecauseit’sbeingcontested,theparentreportingFAFSA
informationwouldnotlistanynetworthfortheproperty.However,iftheownershipofthepropertyisnotbeing
contested,theparentwouldreportthepropertyasanasset.Ifownershipofanassetisresolvedaftertheinitial
applicationisfiled,thestudentcan’tupdatethisinformation.
Lienagainst,andimminentforeclosureof,anasset
Ifthere’salienagainsttheasset,thenetvalueoftheassetisdeterminedbysubtractingfromitstotalvalueany
associateddebtaswellastheamountofthelien.Ifforeclosureofanassetisimminent,thenetvalueoftheasset
wouldstillbereporteduntilthepartymakingtheforeclosurecompleteslegalactiontotakepossessionofthe
asset.Ifthestatusofthepropertychangesaftertheapplicationisfiled,thestudentcan’tupdatetheasset
information.
minimumgrade.AnytaxableportionreceivedintheprioryearandappearingintheAGIisenteredinQuestion
43or91.
e.Combatpayorspecialcombatpay.EnteronlytheportionthatwasincludedinAGI.Thisshouldbezero
forenlistedpersonsandwarrantofficers(includingcommissionedwarrantofficers)becausetheircombatpayis
entirelynontaxable.Forcommissionedofficersgenerally,combatpayinexcessofthehighestenlistedperson’s
pay(plusimminentdanger/hostilefirepay)istaxable.Todeterminethetaxableamount,findthetotalcombat
payfromtheserviceperson’sleaveandearningsstatementsandsubtracttheuntaxedportion,whichis
reportedinbox12oftheW-2formwithcodeQ.SeeIRSPublication3,ArmedForces’TaxGuide,formore
information.
f.Collegecooperativeeducationprogramearningsfromwork.ThestudentusesW-2sorotherrecords
heorshereceivedfortheseearnings.
Untaxedincome(44and92).Thesequestionstotaltheuntaxedincome,someofwhichisreportedonthetax
formeventhoughitisn’ttaxed.Astudentwhohasn’tfiledareturnwillhavetoestimatetheseamounts,and
studentsorparentsmayneedtoseparateinformationfromajointreturn.
a.Paymentstotax-deferredorshelteredpensionandsavingsplans(paiddirectlyorwithheldfrom
earnings).Thisincludesuntaxedportionsof401(k)and403(b)plans.Thesetypesofpaymentsarelistedin
boxes12athrough12doftheW-2andwillhaveoneofthefollowingcodes:D,E,F,G,H,orS.Notethat
employercontributionstotheseplansshouldn’tbereportedasanuntaxedbenefit.
b.DeductibleIRAorKeoghpayments.PaymentstoanIRAorKeoghplanthatareexcludedfromtaxation
arereportedasuntaxedincome.Theseamountsappearonthe1040formschedule1lines15and19.
c.Childsupportreceivedforallchildren.
d.Tax-exemptinterestincome.Certaintypesofinterest,suchasinterestonmunicipalbonds,aretax-
exempt.Thisamountisonline2aonthe1040form.
e.UntaxedIRAdistributionsandpensionorannuitypayments.Ataxfilerdetermineshowmuchofhisor
herIRAdistributionorpensionorannuitypaymentistaxablewhenheorshecompleteshisorhertaxreturn.
Theapplicantreportstheuntaxedportion,whichisdeterminedfromthetaxreturn,butshouldnotinclude
rollovers(transfersoffundsfromoneIRAtoanother).Theseamountscanbefoundonthe1040form—(lines4a
+5a)minus(lines4b+5b).
f.Housing,food,andotherlivingallowances.Somepeople,suchasclergy,receivetheseallowancesas
compensationfortheirjobs.Moneyreceivedtopayforrentshouldalsobereported,asshouldthefreeuseofa
houseorapartment(therentormarketvalueofacomparablehouseorapartmentcanbeused).Similarly,ifthe
studentreceivedfreeroomorboardin2020forajobthatwasnotawardedasstudentfinancialaid(including
residentadvisorpositionsthatprovidefreeroomandboardaspartofthestudent’snon-need-based
employmentcompensation),heorshemustreportthevalueoftheroomandboardasuntaxedincome.
MembersoftheU.S.militaryreporttheirbasicallowanceforsubsistence(BAS)butnottheirbasicallowancefor
housing(BAH).
g.Veterans’noneducationbenefits.Thisincludesdisability,thedeathpension,DependencyandIndemnity
Compensation(DIC),andVeteransAffairs(VA)educationalwork-studyallowances.
h.Anyotheruntaxedincomenotreportedelsewhere.Thisincludesdisabilitybenefits(butnotSocial
Securitydisability),worker’scompensation,tax-freecontributionstoHSAs(seebelow),interestincomeon
educationIRAs,untaxedportionsofRailroadRetirementbenefits,blacklungbenefits,refugeeassistance,the
untaxedportionofcapitalgains,alimony/maintenancepayments/spousalsupportandforeignincomethat
wasn’ttaxedbyanygovernment,wasn’tearned,andwasn’tpartoftheForeignEarnedIncomeExclusion.
Healthsavingsaccounts(HSAs)resembletax-deferredpensionandsavingsplansmorethanflexible
spendingarrangements.Forexample,thebalanceinanHSApersistsfromyeartoyear,whilethatinaflexible
spendingarrangementmustbespentonqualifiedexpensesbytheendoftheyear.Therefore,treattax-free
contributionstoanHSAasuntaxedincome;thesewillappearonline12ofSchedule1ofForm1040.The
balanceintheaccountdoesnotcountasanasset,norwoulddistributionsfromitcountasuntaxedincome
whentheyareusedforqualifiedmedicalexpenses.Distributionsnotusedforqualifiedexpensesaresubjectto
incometax(andapossiblepenalty)andwillbecountedintheadjustedgrossincome.
Extendedfostercarepayments:Fosterchildrenwhomeetcertaincriteriacanreceivebenefitsuntilage21.
IftheseextendedpaymentsareundertheauthorityofTitleIV,PartE,oftheSocialSecurityAct,theyarenot
reportedontheFAFSAform.Iftheyarepaidundersomeotherauthority,e.g.,astatefosteryouthsupport
program,theyarereportedasuntaxedincometothestudentinQuestion44hofthe2022–2023FAFSAform.
SeeDCLGEN-13-18.
i.Moneyreceived(44only).Thestudentreportsanycashsupportheorshereceived,butifdependentheor
shedoesnotcountsupportreceivedfromhisorherparents,withoneexception:moneyfromanoncustodial
parentthatisnotpartofalegalchildsupportagreementisuntaxedincometothestudent.Cashsupport
includesmoney,gifts,housing,food,clothing,carpaymentsorexpenses,medicalanddentalcare,college
costs,andmoneypaidtosomeoneelseorpaidforonhisorherbehalf.Forexample,ifafriendorrelativepays
astudent’selectricbillorpartofhisorherrent,thestudentmustreporttheamountasuntaxedincome.Ifheor
sheislivingwithafriendwhopaystherentandthestudent’snameisonthelease,therentpaidonhisorher
behalfcountsascashsupportbecausethestudentisresponsibleforpaymentsthathisorherfriendismaking.
Notethatonlythestudentreportsthisitem—itdoesnotappearintheparents’untaxedincomesection.
Tipsonreportingbenefits:Thestudentreportstheactualamountofbenefitsreceivedduringtheyear,evenifit
isanunderpaymentoranoverpaymentthatwillbecorrectedinthenextyear.However,iftheunderpaymentor
overpaymentwasadjustedinthesameyear,onlythenetamountreceivedduringthatyearwouldbereported.
BenefitsthestudentorparentsreceiveonbehalfofanyoneincludedintheirFAFSAhouseholdsizecountasincome
tothemunlessthepersonisanadult(notachild),e.g.,agrandmother,whoreceivesthebenefitsinhername.Such
apersonisnotincludedinthehouseholdsizeifbenefitsinhernametotalmorethanhalfofhersupport.
Box14itemsontheW-2:Schoolsarenotrequiredtoreviewincomelistedinbox14oftheIRS’sW-2form.There
areafewreasonsforthis.SeveraloftheitemstheIRSsuggestscouldbereportedinbox14arecapturedalreadyon
theFAFSAform(inadjustedgrossincomeforinstance);also,employerscouldincludeinbox14certainnonelective
pensionplancontributions,andnonelectivecontributionsshouldnotbecountedintheneedanalysis.Finally,
becausenoemployerisrequiredtoprovideinformationinbox14,itisunlikelythatemployerswillbeconsistentin
whattheyreportthere.Butifyouareawarethatabox14itemshouldbereported—i.e.,ifitrepresentsdiscretionary
income—youshouldcountitonthepertinentline.Forexample,clergyparsonageallowancesoftenappearinbox14,
andyouwouldcountthatonlinefofQuestion44or92.
IncomeandbenefitsNOTtobeincluded:
**Studentaid**isaccountedforinpackaging(seeVolume3:CalculatingAwardsandPackaging);itdoesnot
countasincomeinthecalculationoftheEFC.Studentaidincludestuitionbenefitsaparentreceivesfora
dependent,suchasthosefromtheparent’semployer.StudentaidthatwasincludedintheAGIisreported
separatelyontheFAFSAformasanexclusionsothatitcanbesubtractedfromincome(43dand91d).
Veterans’educationbenefits.AppendixAinChapter7ofVolume3for2022–2023hasthelistofexcluded
benefits.SeealsothepertinentAugust13,2009electronicannouncement.
Thevalueofon-basehousingortheBAHforstudentsorparentsintheU.S.military.However,theBASdoes
countasuntaxedincome.
Rentsubsidiesforlow-incomehousing.
Paymentsandservicesreceivedfromstatesforfostercareoradoptionassistance,underPartAor
PartEofTitleIVoftheSocialSecurityAct(e.g.,Wisconsin’sAdoptionAssistanceProgram,whichfacilitatesthe
adoptionofchildrenwithspecialneeds).
PercapitapaymentstoNativeAmericans.See“Assets”sectionearlierinthischapter.
Heating/fuelassistance.ThisincludespaymentsorallowancesreceivedundertheLow-IncomeHomeEnergy
AssistanceAct(LIHEA).PaymentsundertheLIHEAaremadethroughstateprogramsthatmayhavedifferent
names.
Flexiblespendingarrangements.Theseareemployeebenefitprograms,sometimescalled“cafeteriaplans.”
Neithercontributionstonorpaymentsfromtheseprogramsshouldcountasuntaxedincome.
Welfarebenefits,untaxedSocialSecuritybenefits,andtheearnedincomeandadditionalchildtax
credits.Welfarebenefitsaremeans-testedstateorfederalsupplementaryassistance.Examplesarebenefits
fromMedicaid(includingtheChildren’sHealthInsuranceProgram),theSupplementalNutritionAssistance
Program(SNAP),andTemporaryAssistanceforNeedyFamilies(TANF).
Combatpay,ForeignEarnedIncomeExclusion,andcreditforfederaltaxonspecialfuels.
In-kindsupportissupportotherthanmoney,forexample,friendsorrelativesgivingthestudentfoodor
allowinghimorhertolivewiththemrent-free.Thatsupportisn’tincludedasuntaxedincome,thoughyoumay
useprofessionaljudgment(e.g.,byreducingthecostofattendanceorincreasingincome)withstudentswho
receivesuchin-kindsupport.Thisisnotthesameashousingandotherallowancesreceivedascompensation
forajob,which,asstatedearlier,mustbereported.Ifthestudentislivingwithsomeonewhoispayingliving
expenses,itcanbedifficulttodeterminewhetherthesupportiscashsupportorin-kindsupport.Thebasicrule
is:ifsomeonepaysacostthestudentisobligatedtopay,theamountcountsascashsupport.
Example:Independentstudentwithparentalsupport
Dougisagraduatestudent,sohe’sindependenteventhoughhestillliveswithhisparentsandhasnoincome
ofhisown.AlthoughtheFAAathisschoolcan’tmakehimadependentstudent,theFAAcandecidetouse
professionaljudgmenttoaddanamounttohisuntaxedincometoaccountforthein-kindsupporthisparents
provide.
StepThree:DependencyStatus
Purpose:ThelawgoverningtheFSAprogramsisbasedonthepremisethatthefamilyisthefirstsourceofthestudent’s
support,andthelawprovidesseveralcriteriathatdecideifthestudentisconsideredindependentofhisorherparentsfor
aideligibility.Notethatastudentreachingtheageof18or21orlivingapartfromhisorherparentsdoesnotaffecthis
dependencystatus.Forthe2022–2023year,astudentwhomeetsanyofthefollowingcriteriafromHEASec.480(d)is
independent—ifheorshe:
wasbornbeforeJanuary1,1999;
ismarriedasofthedateheorsheapplies;
willbeagraduateorprofessionalstudentwhentheawardyearstarts;
iscurrentlyservingonactivedutyforpurposesotherthantraining;
isaveteranoftheU.S.ArmedForces;
hasdependentsotherthanaspouse;
wasanorphan,fosterchild,orward/dependentofthecourtatanytimesincetheageof13;
isanemancipatedminororinlegalguardianshiporwaswhenthestudentreachedtheageofmajorityinhisorher
state;or
wasdeterminedatanytimesinceJuly1,2021,tobeanunaccompaniedyouthwhowashomelessorself-supporting
andatriskofbeinghomeless.
Ifastudentisconsideredadependentofhisorherparents,theparents'incomeandassetsmustbeincludedonthe
FAFSAform.TheCPSwillcalculateaparentcontributionandaddittothestudent’scontributiontoderiveanEFC.
Inunusualcasesanaidadministratorcandeterminethatastudentwhodoesn’tmeetanyoftheindependencecriteria
shouldstillbetreatedasanindependentstudent.(See“DependencyOverrides”inChapter5.)
Example:Survivingparentandstepparent
Al’sparentsdivorcedwhenhewasfive.Hismotherremarried,andAllivedwithherandhisstepfather,whodidnotadopt
him.Hismotherdiedlastyear,buthisfatherisstillliving.Aldoesn’tmeetanyoftheindependencecriteria,sohe’sa
dependentstudent.Becausehisfatherishisonlyparent,Alneedstoreporthisfather’sinformationontheFAFSAform,
eventhoughhe’sstilllivingwithandbeingsupportedbyhisstepfather.
Example:Studentlivingwithrelatives
Millie’sfatherisdead,andhermothercan’tsupporther,sosheislivingwithhergrandmother.Hermotherdoesn’tpay
anymoneyforhersupport.Milliedoesn’tmeetanyoftheindependencecriteria,soshehastoprovideparental
information.Becausehergrandmotherhasn’tadoptedher,hergrandmotherisn’therparent.Milliewillhavetoprovide
informationabouthermotherontheformunlessthereareunusualcircumstancesthatwouldwarrantadependency
overrideorherreceivingonlyunsubsidizedloans.Inanycase,theschoolmightusePJtoaccountforthegrandmother’s
support.
WhodoesanddoesnotcountasaparentontheFAFSAform?
Married(46).ThestudentmustanswerthisquestionaccordingtohisorhermaritalstatusatthetimetheFAFSA
formissigned;afterthat,thestudentcannotupdateFAFSAinformationforchangesinhisorhermaritalstatus
Iftheapplicantanswers“No”toquestions45–57,thenheorsheisdependentandmustreportparental
informationinStep4ontheFAFSAform.Inmostcasesit’sclearwhotheparentsarebutnotalways.
Count:Biological,adoptive,andstepparents
Aparentisabiologicaloradoptiveparentorapersonthatthestatehasdeterminedtobeaparent(forexample,
whenastateallowsanotherperson’snametobelistedasaparentonabirthcertificate).Astepparentis
consideredaparentifmarriedtoabiologicaloradoptiveparentandifthestudentcountsintheirhouseholdsize.
Biologicalandadoptive(whetheroftheoppositeorsamesex)parentswhoareunmarriedandlivingtogethergive
thatastheirstatusinQuestion58,andbothreporttheirinformationontheFAFSAform.SeeDCLGEN-13-12.
However,astepparentwhodidnotadoptthestudentcannotbethesoleparentfordeterminingdependency
status.Iftheotherparentdies,thestudentisstilladependentoftheremainingbiologicalparent,notthe
stepparent.Ifnobiologicalparentremains,thestudentanswers“Yes”toQuestion52andisindependent.
Donotcount:Fosterparents,legalguardians,andrelatives
AfosterparentoralegalguardianisnottreatedasaparentforFSApurposes.Ifatanytimesincetheageof13
bothofthestudent’sparentsweredead(andheorshedidnothaveanadoptiveparentatthattime)orthe
studentwasinfostercare,heorsheisindependent.Ifthestudentisnow,orwaswhenheorshebecamean
adult,anemancipatedminororinlegalguardianship(seetheexceptionsunderQuestion54),thestudentis
independent.
Ifastudentislivingwithhisorhergrandparentsorotherrelatives,theirdatashouldnotbereportedontheFAFSA
formasparentaldataunlesstheyhaveadoptedthestudent.Anycashsupportfrompersonsotherthanthe
student’sparentsshouldbereportedasuntaxedincome,asdiscussedinStep2.Theschoolmayalsoconsider
otherkindsofsupportaspartofthestudent’sfinancialresourcesanduseprofessionaljudgmenttoincludethe
supportundertheitemforstudent’suntaxedincome(seeChapter5onprofessionaljudgment).
Othersourcesofsupportforchildrenandotherhouseholdmembers
Ifthestudentisreceivingsupporttoraisehisorherchild,isthechildstillconsideredalegaldependent?Ifoneor
bothofthestudent’sparentsaredirectlyorindirectlyprovidingmorethan50%supportincashorother
assistancetothechild,thenthestudentwouldanswer“No”totheFAFSAquestionaboutlegaldependents.
“Indirectsupport”tothechildincludessupportthataparentgivestothestudentonbehalfofthechild.Ifthe
studentislivingwithaparentwhoispayingformostofthehouseholdexpenses,theparentwouldusuallybe
consideredtheprimarysourceofsupporttothechild,andthestudentwouldanswer“No”tothequestionabout
legaldependents.However,theremaybesomecaseswherethestudentcandemonstratethatheorsheprovides
morethanhalfoftheirchild’ssupportevenwhilelivingathome,inwhichcaseheorshewouldanswer“Yes”to
thequestionaboutlegaldependents.
Whenthestudentreceivesmoneyforthechildfromanysourceotherthanhisorherparents,thestudentmay
countitaspartofhisorhersupporttothechild.Sourcesincludechildsupportandgovernmentprograms,suchas
TANFandSNAP(formerlythefederalFoodStampProgram),thatprovidebenefitsfordependentchildren.Soa
studentmaybeconsideredindependentwhenthebenefitheorshereceivesistheprimarysupportforherchild.
Forexample,ifastudentwholivesalonewithherchildreceivescashfromherboyfriendthatamountstomore
than50%supportforthechild,thenshewouldbeabletocountthechildasadependentandinherhousehold
size,andshewouldbeindependent.Iftheboyfriendisthefatherofthechildandastudenthimself,thenhe
wouldalsobeabletocountthechildasadependentandinhishouseholdsize,andhewouldbeindependenttoo.
exceptinlimitedinstances;seeChapter4.
Astudentwhoisonlyengagedanswersasunmarriedunlessheorshewaitsuntilaftertheweddingtocompletethe
FAFSAform.Forthisquestionastudentisconsideredmarriedifheorsheisseparatedorplanningtodivorceorifhe
orshehasarelationshipthatmeetsthecriteriaforcommon-lawmarriageintheirstate.Astudentwhowas
independentonlybecauseheorshewasmarriedbecomesdependentforthenextawardyearifheorshedivorces
andcannotanswer“Yes”toanyofthedependencyquestions.
Graduateorprofessionalstudy(47).TheFAFSAformasksifthestudentwillbeworkingonamaster’s,
doctorate,orgraduatecertificateprogramatthebeginningoftheschoolyear.Astudentwhoisagraduateor
professionalstudentisindependentforpurposesofTitleIVaid.
GraduateandprofessionalstudentsarenoteligibleforPellgrants,soastudentwhoincorrectlyanswers“Yes”tothis
questionmustsubmitacorrectionbeforeheorshecangetaPellgrant,evenifheorsheisindependentforanother
reason.
StudentsshouldfillouttheFAFSAformbasedontheirexpectedgradelevelatthebeginningoftheawardyear.Ifa
dependentstudentcompleteshisorherundergraduateprogramduringtheyearandbeginsgraduateschool,heor
shecanupdatetheanswertothedependencyquestionsothattheCPScanreprocessthestudent’sapplication,or
theaidadministratoratthegraduateschoolcanrecalculatehisorherEFCanduseittopackagethestudent
graduateaid.
MemberorveteranoftheU.S.ArmedForces(48and49).
VeteransandpersonsonactivedutyintheU.S.ArmedForces(theArmy,Navy,AirForce,Marines,orCoastGuard)
forpurposesotherthantrainingareindependent.
Veteransarethosewhowereinactiveserviceandwerereleasedunderaconditionotherthan“dishonorable.”This
includesthosewhofraudulentlyenteredtheservice,aslongastheirentireperiodofservicewasnotvoided.Thereis
nominimumamountoftimethestudenthastohaveservedtobeaveteran—evenonedaycountsandevenbasic
training(bootcamp)counts—butitdoeshavetobeactiveservice.(Seethefollowingrulesforreservists.)Thisisless
stringentthantheVA’sdefinitionofaveteranforreceivingcertainVAbenefits.
TheFAFSAformalsotellsstudentstoanswer“Yes”tothequestionaboutveteranstatusiftheyaren’tyetaveteran
butwillbebyJune30,2023.
MembersoftheNationalGuardorReservesareonlyconsideredveteransiftheywerecalleduptoactivefederal
duty[asdefinedin10U.S.C.101(d)(1)]bypresidentialorderforapurposeotherthantraining.Itdoesnotmatter
howlongtheactivedutylastedorifthestudentreturnedtoreservestatusafterward,but,aswiththeother
qualifyingveterans,thestudentmusthavehadacharacterofservicethatwasnot“dishonorable.”
StudentswhoattendedaU.S.militaryacademyormilitaryacademypreparatoryschoolforatleastoneday
andwerereleasedunderconditionsotherthan“dishonorable”countasveteransforTitleIVpurposes.Iftheyare
dischargedpriortocommission(knownas“earlyexitcadets”),theymightnotbeveteransforVApurposes,andtheir
matchresultwilllikelyshowthattheyaren’tveterans.Aswithotherstudentswhoreceivethisresult,ifanearlyexit
cadetmeetsoneoftheothercriteriaforindependence,noresolutionisrequired.Butifheorshemeetsnoother
independencecriteria,thestudentmustprovidetheschoolwithdocumentationthatshowsheorshewasacadetof
amilitaryacademyoritspreparatoryschoolandwasreleasedunderaconditionotherthandishonorable.Students
servinginROTCorcurrentlyattendingaU.S.militaryacademyarenotveterans.
Militaryserviceacademiesandpreparatoryschools:
U.S.MilitaryAcademy(WestPoint)
U.S.NavalAcademy(Annapolis)
U.S.AirForceAcademy
U.S.CoastGuardAcademy
U.S.MerchantMarineAcademy
U.S.MilitaryAcademyPreparatorySchool
NavalAcademyPreparatorySchool
U.S.AirForceAcademyPreparatorySchool
Veteranmatch(forQuestion49)
Ifthestudentanswers“Yes”tothequestionaboutveteranstatus,theCPSperformsamatchwithVArecordsto
confirmthatstatus.TheVAsendstheresultback,whichappearsasamatchflagintheFAAInformationsectionof
theoutputdocument.Forflags2,3,and4,acommentandaCflagwillappearontheSARonlyifveteranstatusis
thesolereasonthatthestudentwouldbeindependent.Seethe2022-2023SARCommentCodesandTextGuide
ontheKnowledgeCenter.
Successfulmatch(matchflag1)
Therewon’tbeanycommentsontheoutputdocumentiftheVAconfirmsthatthestudentisaveteran.
Notaveteran(matchflag2)
AstudentwillreceivethisflagiftheVAdatabaseindicatesheorsheisnotaveteran.Ifthestudentanswered
“Yes”tooneoftheotherdependencyquestions,thestudentisindependentbasedonthatquestionandcan
receivestudentaidwithoutresolvingtheirveteranstatus.
Ifthestudentanswered“No”toalltheotherdependencyquestionsandheorshebelievestheyareaqualifying
veteran,thestudentshouldprovidethefinancialaidofficeathisorherschoolacopyoftheirDD214(the
CertificateofReleaseorDischargefromActiveDuty,with“CharacterofService”asanythingbut“dishonorable”).
Ifitshowsthatthestudentisaveteran,heorshecanreceiveaidasanindependentstudent.Adependency
overrideisnotnecessarybecausetheCPSacceptsthestudent's“Yes”answertotheveteranquestion.Ifa
NationalGuardsmanorareservistwhoservedonactiveduty(forotherthantraining)didnotreceiveaDD214but
canobtainaletterfromasuperiorofficerthatdocumentsthecall-uptoactivedutyandthatclassifiesthe
characterofserviceasanythingbut“dishonorable,”thestudentwillbeconsideredaveteranforFSApurposes.If
thestudentturnsoutnottobeaveteran,heorshewillneedtochangehisorheranswertothequestionfrom
“Yes”to“No”andprovideparentinformation,includingaparent’ssignature.
IftheVAmatchproblemisduetoanerrorintheVA’sdatabase,thestudentshouldcontacttheVAandcorrectthe
error.AsubsequenttransactionwillthenredothematchwiththeVA.
Notindatabase(matchflag3)
MuchoftheguidanceaboveappliesforstudentsnotintheVAdatabase:ifthestudentisindependentfora
reasonotherthanbeingaveteran,heorshedoesn’tneedtoresolvetheproblembeforereceivingstudentaid,
althoughthestudentshouldhavetheVAcorrectitsdatabaseifit’swrong.Ifthestudentanswered“No”tothe
otherdependencyquestions,heorshemusteithercorrectanyproblemwiththeVA,providedocumentation
showingheorsheisaveteranorwillbeonebyJune30,2023,or,ifheorsheisnotaveteranandwillnotbeone
bythatdate,provideparentdataandchangetheirresponsetothequestionfrom“Yes”to“No.”
Activeduty(matchflag4)
Ifthestudentiscurrentlyonactiveduty,heorsheisn’taveteranyet,butifhisorheractivedutywillendbyJune
30,2023,heorshecountsasaveteranfordependencystatus.Becausethestudentshouldhaveanswered“Yes”
totheactivedutyquestion,heorshewouldbeindependentbythatcriterionandwouldn’thavetoresolvethis
situation.
Documentationoffosteryouth(forQuestion52)
Ifyouhavecausetorequiredocumentationfromstudentswhoindicatethattheywereinfostercaresinceturning
13,thefollowingareexamplesofdocumentsthatcouldattestthestudent’sformerfosteryouthstatus:acopyof
acourtorder;thestatementofastateorcountychildwelfareagency;thestatementofaprivateprovideragency
thatdeliverschildwelfareservices;orthestatementfromanattorney,guardianadlitem,orcourt-appointed
Childrenandlegaldependents(50and51).Studentswhohavelegaldependentsareindependent.Legal
dependentscomprisechildren(includingthosewhowillbebornbeforetheendoftheawardyear)ofthestudentwho
receivemorethanhalftheirsupportfromthestudent,andotherpersons(exceptaspouse)wholivewithandreceive
morethanhalftheirsupportfromthestudentasoftheFAFSAsigningdateandwillcontinuetodosofortheaward
year.Thesamecriteriaapplytohouseholdsize.
Whenastudentappliesaftertheawardyearhasbegun,inordertocountapersonwhoisnotthestudent'schildasa
dependent,thesupportalreadygiventhatyearplusthefuturesupportmusttotalmorethan50percentforthe
wholeyear.SeeExample4below.
Legaldependentexamples
Example1:Stanislaw’suncleYvorliveswithhimandreceivesasmalldisabilitypaymenteachmonth.Thisamount
ispaiddirectlytoYvor,soStanislawdoesn’treportitasincomeontheFAFSAform.Thepaymentissmallenough
thatStanislawisstillprovidingmorethanhalfofYvor’ssupport,andbecauseheexpectstocontinuetoprovidemore
thanhalfsupportduringtheawardyear,heincludesYvorasadependentinhishouseholdsize.However,Yvor
expectstoalsostartreceivingapensionlatenextyear.Thecombinationofthepensionandthedisabilitypayment
willbeenoughthatStanislawwon’tbeprovidingmorethanhalfofhisuncle’ssupportandthereforewon’tbeableto
includeYvorinhishouseholdsizeafterthisawardyear.
Example2:LaurelisgoingtocollegeandishercousinPaul’slegalguardian.PaulreceivesSocialSecuritybenefits,
butbecausehe’saminor,thebenefitsarepaidtoLaurelonhisbehalf.Thesebenefitsprovidemorethanhalfof
Paul’ssupport.BecausePaulliveswithLaurelandwillbesupportedbyher(throughtheSocialSecuritybenefits)
throughouttheawardyear,Laurelanswers“Yes”tothelegaldependentquestion.IfPauldidn’tlivewithLaurel,she
wouldhavetoanswer“No”tothequestion.
Example3:Alanpays$4,000tosupporthisgirlfriend,Cathy,wholiveswithhim.Shehasearnedincomeof$3,000,
andshereceives$200amonth($2,400ayear)fromherparents.Sheusesallofthisforhersupport.Alancannot
considerCathyadependentsincethe$4,000heprovidesisnotmorethanhalfofhertotalsupportof$9,400.
Example4:InApril2022Anikaappliesforaidforboth2021–2022and2022–2023awardyears.Onemonthpriorto
that,hercousinBettinacametolivewithher.EventhoughAnikaprovidesallofhercousin’ssupport,themonthof
supportshehasgivenplusthetwomonthsleftintheawardyearwouldnotamounttomorethan50%for2021–
2022,soshecan’tconsiderBettinaherdependentforthatyear.IfBettinahadmovedinbeforethemidpointofthe
year,Anikawouldhavebeenabletocountherasadependentfor2021–2022.However,becausethetwoplantolive
togetheratleastthroughJune2023,AnikacancountBettinaasadependentfor2022–2023.
Orphan,fosterchild,orwardofthecourt(52).Astudentwhowasanorphan—bothhisorherparentswere
dead—when13orolderisindependentevenifthestudentwassubsequentlyadopted.Likewise,astudentwhowas
atanytimesincetheageof13afosterchildorawardofthecourtisindependentevenifhisorherstatus
changedlater.
Astudentisawardofthecourtifithasassumedlegalcustodyofthestudent.Insomestatesthecourtmayimpose
itsauthorityoverajuvenilewhoremainsinthelegalcustodyofhisorherparents;suchastudentisnotawardof
thecourt.Also,incarcerationofastudentdoesnotqualifythestudentasawardofthecourt.Insomestatesthe
phrase“wardofthestate”isused;aslongasitisnotduetoincarceration,thisisconsideredthesameasawardof
thecourtfordependencystatus.
Emancipationandlegalguardianship(53and54).Studentsareindependentiftheyare,orwereuponreaching
theageofmajority,emancipatedminors(releasedfromcontroloftheirparentorguardian)orinlegalguardianship,
bothasadjudicatedbyacourtofcompetentjurisdictionintheirstateoflegalresidenceatthetimeofthe
adjudication.Theemancipationmustbedeterminedbyacourt,notbyanattorney,thoughthebasisforitcanvary
bystate.
Studentsplacedinlegalguardianshiptotheirparents—e.g.,iftheyaredisabledadultsandundertheirparents’care
—arenotindependentforTitleIVprogrampurposesbythiscriterionandwouldanswer“No”toQuestion54.
Similarly,guardianshipofaperson’sestatedoesnotqualifyasalegalguardianshipforthispurpose;theFAFSAform
specialadvocatedocumentingtheperson’srelationshiptothestudentaswellasthelatter’sfosteryouthstatus.
asks,“Doessomeoneotherthanyourparentorstepparenthavelegalguardianshipofyou”—i.e.,thestudent,nothis
orherestate.Sostudentswouldanswer“No”tothequestionifanotherpersonhasonlybeenappointedguardianof
theirestate.Theyshouldalsoanswer“No”andcontactyourschoolifcustodywasawardedbyacourtandthecourt
paperssay“custody”insteadof“guardianship.”Moststateshaveacleardefinitionoflegalguardianshipthatis
distinctfromcustody,butifagivenstatedoesnot,askyourschool’slegalcounselforhelpwiththisquestion.
Unaccompaniedhomelessyouth(55–57).AstudentisindependentifatanytimeonorafterJuly1,2021
(irrespectiveofwhetherheorsheiscurrentlyhomelessoratriskthereof),thestudentisdeterminedtobean
unaccompaniedyouthwhoishomelessorisself-supportingandatriskofbeinghomeless.Thisdeterminationcanbe
madeby:aschooldistricthomelessliaison,thedirector(ordesignee)ofanemergencyshelterortransitionalhousing
programfundedbytheU.S.DepartmentofHousingandUrbanDevelopment,orthedirector(ordesignee)ofa
runawayorhomelessyouthbasiccenterortransitionallivingprogram.Dependingonthedistrict,theseauthorities
maychoosetomakethisdeterminationonlyifthestudentisreceivingtheirprograms’servicesorif,inthecaseofa
schooldistricthomelessliaison,thestudentisinhighschool.AnFAAmayalsodeterminethis;seeChapter5.
Studentswhoare22or23yearsold,thoughnotdefinedasyouthintheMcKinney-VentoAct,mayalsoanswer“Yes”
tothesequestions.
StepFour:Parents’Information(DependentStudentsOnly)
Purpose:Questions58–78collectinformationaboutthestudent’sparentsandtheirhousehold.Questions79–92collect
taxandfinancialdatafortheparents,andbecausethesequestionsareansweredinthesamewayasforthestudent,
theywerediscussedearlier.
Parents’personalinformation(58–68).TheFAFSAformasksforparents’maritalstatus;themonthandyear
theyweremarried,remarried,separated,divorced,orwidowed;SSN;lastname;firstinitial;anddateofbirth.This
dataisusedfortheIRSDRTandhelpsthegovernmentestimateerroneousPellpayments.IftheSSN,lastname,and
birthdateforatleastoneparentarenotgiven,orifneitherparent’sSSNmatcheswiththeSSA,theapplicationwill
berejected.WhentheSSNdoesn’tmatch,thewrongnumbermustbecorrectedsothattheapplicationandSSA
agree.Foranameorbirthdatethatdoesn’tmatch,correcttheapplicationifit’swrongorre-entertheinformationif
it’scorrect.Iftheparentdoesn’thaveanSSN,enterallzeros(000-00-0000)topreventorremovearejectcode.Do
notuseanindividualtaxpayeridentificationnumberasanSSN.
Parents’stateofresidence(69–71).ParentswhodonotliveintheUnitedStatesshouldenter“FC”forQuestion
69.
Householdsize(72).ThisdeterminesthestandardlivingallowancethatoffsetsfamilyincomeintheEFC
calculation.Thefollowingpersonscountinthehouseholdsizeofadependentstudent’sparents:
Thestudentandparents,evenifthestudentisnotlivingwiththem.Excludeaparentwhohasdiedorisnot
livinginthehouseholdbecauseofseparationordivorce,butincludeaparentwhoisonactivedutyintheU.S.
ArmedForcesapartfromthefamily.
Thestudent’ssiblingsandchildren,iftheywillreceivemorethanhalftheirsupportfromthestudent’s
parent(s)fromJuly1,2022,throughJune30,2023.Siblingsneednotliveinthehome.Thisincludesunborn
childrenandsiblingsofthestudentwhowillreceivemorethanhalfsupportfromthestudent’sparent(s)from
birthtotheendoftheawardyear.Italsoincludessiblingswhowouldbeconsidereddependentbasedonthe
FAFSAdependencyquestions(i.e.,theyneednotbestudentsnorapplyforaid).
Forchildreninthehouseholdsize,the“supporttest”isusedratherthanresidencybecausetheremaybe
situationsinwhichaparentsupportsachildwhodoesnotlivewithhimorher,suchaswhentheparentis
divorcedorseparated.Iftheparentreceivesbenefits(suchasSocialSecuritypayments)inthechild’sname,
thesebenefitsmustbecountedasparentalsupportforthechild.
Otherpersonswholivewithandreceivemorethanhalftheirsupportfromthestudent’sparent(s)andwill
receivemorethanhalfsupportfortheentireawardyear.Whentheapplicationissubmittedafterthestartof
theyear,seetherelevantparagraphandexampleaboutlegaldependentsprovidedearlierinthischapterunder
the“Childrenandlegaldependents”section.
Example:Lydiaisadependentstudent,andherparentsaremarried.HerbrotherRonis26,buthisparentsstill
providemorethan50%ofhissupport,soheisincludedinthehouseholdsize.HersisterElizabethisattending
collegebutisanindependentstudentandisn’tsupportedbytheirparents,sosheisn’tincludedinthehousehold
size.HersisterSusanisnotattendingcollegebutisworkingandsupportingherself.However,ifSusanweretoapply
forstudentaid,shewouldbeconsideredadependentstudent,sosheisincluded.Therefore,thehouseholdsizethat
Lydiareportsforherparentsisfive.
Fosterchildreninhouseholdsize:Typicallyfosterchildrendonotcountinthehouseholdsizeastheircostsare
coveredbyfostercarepayments.However,childrenin“kinshipfostercare”forwhomnobenefitsareprovidedcan
countinthehouseholdsizeiftheymeetthetestsforotherpersons,i.e.,iftheylivewithandreceivemorethanhalf
theirsupportfromtheirfosterparentsfortheawardyear.
NotethattherulesthatdecidewhethersomeoneiscountedinthehouseholdforFSApurposesaren’tidenticaltothe
IRSrulesfordeterminingdependentsorhouseholdmembers.
Reportinginformationincasesofdeath,separation,divorce,andremarriage
Deathofaparent
Ifone,butnotboth,ofthestudent’sparentshasdied,thestudentanswerstheparentalquestionsaboutthe
survivingbiologicaloradoptiveparentanddoesnotreportanyfinancialinformationforthedeceasedparent.If
bothparentsaredeadwhenthestudentcompletestheFAFSAform,heorshemustanswer“Yes”toQuestion52,
makinghimorherindependent.Rememberthatanadoptiveparentcountsasaparent,butalegalguardiandoes
not.IfthesurvivingparentdiesaftertheFAFSAformhasbeenfiled,thestudentmustupdatehisorher
dependencystatusandreportincomeandassetsasanindependentstudent.
Stepparent
Astepparentistreatedlikeabiologicalparentifthestepparenthaslegallyadoptedthestudentorifthe
stepparentismarried,asofthedateofapplication,toastudent’sbiologicaloradoptiveparentwhoseinformation
willbereportedontheFAFSAform.Therearenoexceptions.Aprenuptialagreementdoesnotexemptthe
stepparentfromprovidinginformationrequiredofaparentontheFAFSAapplication.Thestepparent’sincome
informationfortheentirebaseyear,2020,mustbereportedeveniftheparentandstepparentwerenotmarried
untilafter2020.Seeaboveforhowtofillouttheparentquestionswhenthestepparent’sspouse(thebiological
parent)dies;ifthestepparenthasnotadoptedthestudent,heorshewouldnolongerprovideparental
informationasbefore,butanyfinancialsupporttheygivetothestudentwouldbecountedasuntaxedincome.
Divorceofthestudent’sparents
Ifthestudent’sparentsaredivorced,heorsheshouldreporttheinformationoftheparentwithwhomtheylived
withlongerduringthe12monthspriortothedateheorshecompletestheapplication.Ifthestudentlivedequally
witheachparentordidnotlivewitheitherone,thenheorsheshouldprovidetheinformationfortheparentfrom
whomheorshereceivedmorefinancialsupportortheonefromwhomheorshereceivedmoresupportthelast
calendaryearforwhichitwasgiven.Notethatitisnottypicalthatastudentwilllivewithorreceivesupportfrom
bothparentsexactlyequally.Usuallyyoucandeterminethatthestudentlivedwithoneoftheparentsmorethan
halftheyearorthatheorshereceivedmorethanhalfsupportfromoneoftheparents.Example:Martais22and
doesn’tmeetanyoftheindependencecriteria.Herparentsdivorcedrecently,andshehasnotlivedwiththem
sinceshewas18.Also,neitherparentprovidedsupportinthepastyear.Thelasttimeshereceivedsupportfrom
herparentswaswhenshelivedwiththemandtheywerestillmarried.Becauseherfather’sincomewaslarger
andhecontributedmoremoneytotheoverallhouseholdexpenses,Martadeterminesthatthelasttimeshe
receivedsupport,mostofitwasfromherfather.SheprovideshisdataontheFAFSAform.
Ifbiologicaloradoptiveparentswhoaredivorcedstilllivetogether,theirstatusisunmarriedandlivingtogether
andbothwouldreporttheirinformationontheFAFSAform;see“Whodoesanddoesnotcountasaparentonthe
FAFSAform”sectionearlierinthischapterformoreinformation.Ifoneorbothofthemhavemarriedsomeone
elseandallliveinthesamehousehold(andpresumablythestudentlivedwithbothparentsanequalamountof
time),theparentandstepparent,ifapplicable,whoprovidedmoresupportinthepreviousyearwouldinclude
Numberincollege(73).Theapplicantalwayscountsinthenumberincollege,butparentsdonot.Others
includedinthehouseholdsizearealsoincludedinthenumberincollegeiftheyareorwillbeenrolledatleasthalf
timeduringtheawardyearinanyeligibledegreeorcertificateprogramataschooleligibleforanyoftheFSA
programs.Thedefinitionofhalf-timeenrollmentforthisquestionmustmeetthefederalrequirementsevenifthe
schooldefineshalftimedifferently.(SeeVolume1:StudentEligibilityforenrollmentstatusrequirements.)
Serviceacademies,householdsize,andnumberincollege
StudentsatU.S.serviceacademieshavemostoftheireducationalexpensespaidforbythefederalgovernment.
Becauseofthis,theirfamiliescannot“reasonablybeexpectedtocontributetotheirpostsecondaryeducation”and
theyarenotcountedinthenumberincollegeinthefamiliesofeitherdependentorindependentstudents.Since
theywillnotreceivemorethanone-halfoftheirsupportfromanyperson,theyalsodonotcountinthehousehold
sizeofanyindependentstudentsandsomedependentstudents.However,ifaserviceacademyattendeeisasibling
ofadependentstudentandcananswer“No”toallthedependencystatusquestions,heorshewouldcountinthe
householdsizeofthatdependentstudent.[HEASec.474(b)(3);480(k),(l)]
Receiptofmeans-testedfederalbenefitsbyanyoneinthehousehold(74–78).Thisasanalternativeforthe
taxreturnrequirementofthesimplifiedneedsandautomaticzeroEFCtests.
Taxformsfiledbyparents,filingstatus,income,andassets(79–82,84–92).Refertotheearlierdiscussion
forthesequestions.
Dislocatedworker(83).Thisstatus,asdefinedintheWorkforceIn-novationandOpportunityActorWIOA,isan
alternativetothetaxreturnandmeans-testedfederalbenefitscriteriafordeterminingifapersonqualifiesforthe
simplifiedneedstestorautomaticzeroEFC.Apersonwouldanswer“Yes”tothisquestionifheorshemeetsthe
statutorydefinitionofdislocatedworkerbutdoesnotappeartobecauseofthegeneralnatureoftheFAFSA
theirinformationontheFAFSAform.SchoolsmayusePJtoaccountfortheotherparent’sfinancialcontribution
thatisnotalreadyproperlycountedaschildsupportonline44cormoneyreceivedonline44iofthe2022–2023
FAFSAform.
Separationofthestudent’sparentsorthestudentandspouse
Acoupleneednotbelegallyseparatedtobeconsideredseparated—theymaydeemthemselvesinformally
separatedwhenoneofthepartnershasleftthehouseholdforanindefiniteperiodandthemarriageissevered.
Foradependentstudent,usetherulesfordivorcetodeterminewhichparent’sinformationtoreport.Whilea
marriedcouplethatlivestogethercan’tbeinformallyseparated,insomestatestheycanbelegallyseparated.If
theirstateallowsthis,andiftheyarestilllivingtogetherandarelegallyseparated,thenthatistheirstatusonthe
FAFSAformunlesstheyaretheparentsofadependentstudent,inwhichcasetheirstatusisunmarriedandliving
togetherandbothwouldreporttheirinformation.
Common-lawmarriage
Ifacouplelivestogetherandhasnotbeenformallymarriedbutmeetsthecriteriaintheirstateforacommon-law
marriage,theyshouldbereportedasmarriedontheFAFSAform.Ifthestatedoesn’tconsidertheirsituationtobe
acommon-lawmarriage,thentheyaren’tmarried;parentsofadependentstudentwouldreportthattheyare
unmarriedandlivingtogether.Checkwiththeappropriatestateagencyconcerningthedefinitionofacommon-
lawmarriage.
Numberincollege
HEASec.474(b)(3)
instructions.UndertheWIOA,adislocatedworkerissomeonewhofallsintoatleastoneofthesecategories:
Apersonwhomeetsallofthefollowingrequirements:
Heorshewasterminatedorlaidofffromemploymentorreceivedanoticeofterminationorlayoff.
Heorsheiseligiblefororhasexhaustedhisorherunemploymentcompensation,orheorsheisnot
eligibleforitbecause,eventhoughtheyhavebeenemployedlongenoughtodemonstrateattachmentto
theworkforce,heorshehadinsufficientearningsorperformedservicesforanemployerthatweren’t
coveredunderastate’sunemploymentcompensationlaw.
Heorsheisunlikelytoreturntoapreviousindustryoroccupation.
Apersonwhowasterminatedorlaidofffromemploymentorreceivedanoticeofterminationorlayoffasa
resultofanypermanentclosureof,oranysubstantiallayoffat,aplant,facility,orenterprise
Apersonwhoisemployedatafacilityatwhichtheemployermadeageneralannouncementthatitwillclose
within180days
Apersonwhoisemployedatafacilityatwhichtheemployermadeageneralannouncementthatitwillclose
Aself-employedperson(includingfarmers,ranchers,orfishermen)whoisunemployedbecauseofnatural
disastersorbecauseofgeneraleconomicconditionsinhisorhercommunity
Aspouseofanactive-dutymemberoftheArmedForceswhohasexperiencedalossofemploymentbecauseof
relocatingduetopermanentchangeindutystation
Aspouseofanactive-dutymemberoftheArmedForceswhoisunemployedorunderemployedandis
experiencingdifficultyinobtainingorupgradingemployment
Displacedhomemakerswhomeetallofthefollowingcriteria:
Theyhavebeenprovidingunpaidservicestofamilymembersinthehome.
Theyhavebeendependentontheincomeofanotherfamilymemberbutarenolongersupportedbythat
income.
Theyareunemployedorunderemployedandhavingtroublegettingorupgradingemployment.An
underemployedpersonisoneworkingparttimebutwhowantstoworkfulltimeorisworkingbelowthe
demonstratedlevelofhisorhereducationorjobskills.
Noteveryonewhoreceivesunemploymentbenefitswillmeetthedefinitionofdislocatedworker.Forexample,in
generalthosewhoquittheirjobsarenotconsidereddislocatedworkers,eveniftheyarereceivingunemployment
benefits.
Youarenotrequiredtoverifytheanswertothisquestion.Ifyouchoosetoverifyit,documentationcaninclude,as
appropriatetothecategory,aletteroralayofforterminationnoticefromtheemployer,unemploymentinsurance
(UI)systemverification,taxreturns,abusinesslicense,ornewspaperarticles.Youmayalsousedocumentsfromthe
stateworkforceagencyora“one-stopcareercenter,”thoughtheyarenotrequiredtoprovideyousuch
documentationandapersonmaymeetthedislocatedworkerdefinitionwithoutgoingtotheworkforceinvestment
systemforservices.Absentallotherevidence,self-certificationwillsuffice,suchasastatementsignedbytheperson
affirmingthatheorshemeetsthedefinitionofdislocatedworker.
Informationfromtheworkforceinvestmentsystem.ThelocalworkforceinvestmentsystemandstateUI
agencymaysupportfinancialaidadministratorsby
providinggeneralinformationtodislocatedworkers;
providinggeneralinformationtofinancialaidadministrators,suchastheWIOAdefinitionofdislocatedworkers
andappropriatesamplesofdocumentationthatfinancialaidofficescanrequestfromanindividualtoverify
dislocatedworkerstatus;
providingspecificinformationtodislocatedworkers.Apersoncanrequestdocumentationfromthecareer
centerorotherappropriateofficethatheorsheisreceivingdislocatedworkerservicesthroughtheworkforce
investmentsystem.Thatofficecangivethedocumentationtothestudent,orathisorherrequestitmay(butis
notobligatedto)givethedocumentationdirectlytothecollege.
Ifyoumustdetermineifsomeoneisadislocatedworker,youhavesoleresponsibilityandmustmakethe
determinationregardlessofwhetherthepersonhasproofofdislocatedworkerstatus—orisreceivingdislocated
workerservices—fromtheworkforceinvestmentsystem.
Notethataresponseof“Don’tknow”ontheFAFSAformistreatedas“No”bytheCPS.Ifapersongivesthis
responsetoQuestion83or100,youarenotrequiredtoverifyit,butyoumaywanttodetermineifheorsheisa
dislocatedworkerandifthatwouldaffectthestudent’seligibilityforfederalaid.
StepFive:IndependentStudentData
Purpose:Questions93–100collectinformationaboutindependentstudents.Onlystudentswhoanswered“Yes”tooneor
morequestionsinStepThreecompletethisstep.
Student’shouseholdsize(93).Thefollowingpersonsareincludedinthehouseholdsizeofanindependent
student:
Thestudentandhisorherspouse,unlessthespousehasdiedorisnotlivinginthehouseholddueto
separationordivorce.
Thestudent’schildren,regardlessofwheretheylive,iftheywillreceivemorethanhalfoftheirsupportfrom
thestudent(andspouse)fromJuly1,2022,throughJune30,2023.Thisincludesthestudent’sunbornchildren
whowillbebornduringtheawardyearandwillreceivemorethanhalftheirsupportfromthestudentfrombirth
totheendoftheawardyear.
Otherpersonswholivewithandreceivemorethanhalftheirsupportfromthestudentandwillreceivemore
thanhalfsupportfortheentireawardyear.ForFAFSAformssubmittedafterthestartoftheyear,seethe
relevantparagraphandexampleaboutlegaldependentsprovidedearlierinthischapterunderthe“Children
andlegaldependents”section.
Example:Eddyisanindependentstudent.Hewasmarried,butnowheandhiswifehaveseparated.He’s
payingchildsupport,butitisn’tenoughtoprovidemorethanhalfhischildren’ssupport,sohecan’tincludehis
childreninhishouseholdsize.Eddy’snephewChavoliveswithhimandgetsmorethanhalfofhissupportfrom
Eddy(andwilldosofortheawardyear),sohecanbecountedinEddy’shouseholdsize,whichistwo.Having
justturned24,ChavoisalsoconsideredindependentonhisownFAFSAform,andhishouseholdsizeisone.
Numberincollege(94).Thestudentisalwaysincludedinthenumberincollege.Alsoincludedarethoseinthe
householdsizewhoareorwillbeenrolledatleasthalftimeduringtheawardyearinadegreeorcertificateprogram
ataTitleIV-eligibleschoolandwhocanreasonablybeexpectedtoreceiveaidfromthefamilyfortheireducation.
Thedefinitionofhalf-timeenrollmentforthisquestionmustmeetthefederalrequirementseveniftheschooldefines
halftimedifferently.
Example:Underthepreviousexample,Eddywouldreporttwointhehouseholdandtwoincollege,whileChavo
wouldreportoneinhishouseholdandoneincollege.
Receiptofmeans-testedfederalbenefitsbyanyoneinthehousehold(95–99).Thisisanalternativeforthe
taxreturnrequirementofthesimplifiedneedsandautomaticzeroEFCtests.
Dislocatedworker(100).SeetheexplanationofQuestion83discussedearlierunderStepFour.
StepSix:SchoolInformation
Purpose(101):TheseitemscollectinformationaboutwhichcollegesthestudentwantstoreceivehisorherFAFSA
information.Foracollegetobeabletoreceivethestudent'sdata,thestudentmustlistthecollege’sfederalschoolcode
(nottheOPEID)orenteritscompletename,address,city,andstate.Thereisafederalschoolcodesearchintheonline
FAFSAform,andtheentirelistofschoolcodesisavailableinExcelontheKnowledgeCenterwebsiteLibrarysection’s
“PublicationsbyResourceType”area.
Foreachschoolthestudentindicateswhetherheorsheexpectstoliveonoroffcampusorwithhisorherparents.This
informationisnotusedtocalculatetheEFC,butitisusefultoschoolsfordeterminingthecostofattendance.
ThestudentcanlistuptofourschoolsonthePDFFAFSAformand10ontheweb(atleastoneisrequired).Ifheorshe
wantstheirinformationtobeavailabletomoreschools,heorshecanchangetheschoolslistedonlineorusetheirSAR.
TheCPSwillsenddatatonomorethan10(fourwiththePDFFAFSAform)schoolsatatime.Chapter4explainshow
studentscanaddorchangeschools.
TheISIRwillonlydisplaythefederalschoolcodeandcorrespondinghousingcodeofthereceivingschool.Theinformation
ofotherschoolsthestudentincludedontheFAFSAformwillnotappearexceptontheSARandonISIRssenttostate
grantagencies.SeeTheISIRGuide2022–2023.
StepSeven:Signature(s)
Purpose:BysigningtheFAFSAform,theapplicantisassumingresponsibilityfortheaccuracyoftheinformation
reported.
Dateandsignature(s)(102–103).InadditiontocertifyingthatthedataontheFAFSAformiscorrect,thestudent
isalsosigningastatementofeducationalpurpose,whichisrequiredtoreceiveFSAfunds.Amongotherthings,the
studentagreestospendFSAfundsonlyoneducationalexpensesandaffirmsthatheorsheisnotindefaultona
federalloanordoesnotoweagrantoverpayment.Ifthestudentisdependent,oneparentwhoseinformationis
reportedontheFAFSAformmustalsosign.
Substitutesforaparent’ssignature.Whileparentinformationmustbeprovidedforadependentstudent,ahigh
schoolcounselororacollegeaidadministratormaysigntheapplicationinplaceofaparentif:
theparentsarenotcurrentlyintheUnitedStatesandcannotbecon-tactedbynormalmeans,
thecurrentaddressoftheparentsisnotknown,or
theparentshavebeendeterminedphysicallyormentallyincapableofprovidingasignature.
Thesignermustprovidehisorhertitleinparenthesesnexttohisorhersignatureandbrieflystatethereason(only
oneisneeded)whyheorsheissigningfortheparents;ifthisisnotdone,theFAFSAformwillnotbe
processed.Thesignerassuresaminimumlevelofcredibilityinthedatasubmitted;however,heorshedoesnot
assumeanyresponsibilityorliabilityinthisprocess.IfthecounselororFAAfindsanyinaccuraciesintheinformation
reported,theyshoulddirectthestudenttosendtheSARthroughthenormalcorrectionprocessor,ifheorsheisan
FAA,theycansubmitcorrectionsthroughFAAAccesstoCPSOnline.Becausethisproxysigningisn’tpossible
electronically,itmustbedoneonapaperFAFSAoronthesignaturepage/FAFSAsummaryusedwithFAAAccess.
Preparer’sIDandsignature(104–106).Onlypersonswhoarepaidafeetohelpthestudentcompletethe
applicationareconsideredFAFSApreparers.Thosewhoadvisestudentswithoutchargingafee,suchashighschool
counselorsandFAAs,arenotpreparers.Apreparermustincludehisorhername,hisorhercompany’sname(if
applicable),hisorheraddressorthecompanyaddress,andeitherhisorherSSNorthecompanyemployer
identificationnumber(EIN,asassignedbytheIRS).WiththepaperFAFSAform,thepreparermustalsosignanddate
theform.
Preparershaveotherobligations.Intheiradvertisingandinitialcontactwithaconsumer,includingviatheInternetor
phone,theymustclearlyinformhimorherthattheFAFSAformisfreeandcanbecompletedelectronicallyoron
paperwithoutprofessionalhelp.Iftheyhaveawebsitefortheirservice,itmustlinktoFAFSAontheWeb.Theymay
notuseanyformotherthantheFAFSAformtoapplyforTitleIVaid.
Apreparerwhoknowinglyfalsifiesinformationontheapplicationissubjecttothesamepenaltiesasanapplicant.
Copiesofsigneddocuments
Whileyouwilloftenreceivedocumentswithoriginalor“wet”signaturesfromthestudent(e.g.,apaperFAFSAform
thatthestudenthasworkedonandsignedwhileinyouroffice),theremightbeanoccasionwherethestudentgives
youacopyorsendsyouafaxofasigneddocument.ExceptforacopiedFAFSAform,otherimagedversionsofthe
originalsigneddocumentarevalidandmayberetained.
AssistanceinpreparationoftheFAFSA
HEASec.483(d)
Signaturesforelectronicapplications
FAAAccesstoCPSOnline
SignatureRequirements:ApplicationandVerificationforAllFSAPrograms
Application(FAFSA
online,myStudentmobile
app,PDFFAFSA,FAA
AccesstoCPSOnline)
IRSDocumentation(Transcriptorotherform
submittedforverification)
Verification
Document
Ifyouenterastudent’soriginalapplicationthroughFAAAccesstoCPSOnline,youmustobtainoriginalor“wet”
signaturesontheprintedsignaturepage/FAFSAsummaryoronacompletedpaperFAFSAform,andyoumust
keepthesigneddocumentintheschoolfilesevenifthestudentdoesnotreceivefederalstudentaidorattend
yourschool.Youmayelectronicallystoretheoriginaldocument,butyoumaynotacceptfaxedorcopied
signaturesfromthestudentfortheFAFSAform.(Youhavemorelatituderegardingverificationdocumentsand
changestotheapplication;seeChapter4)
FAFSAonline
StudentswhohaveanFSAIDcanelectronicallysigntheirFAFSAform.ParentswhohaveanFSAIDcanalso
electronicallysign.Whenallthenecessarysignaturesareprovidedelectronically,theapplicationwillbe
processedwithin72hours.StudentsandparentsalsousetheFSAIDtosigntheapplicationintheFAFSAfeature
ofthemyStudentAidmobileapp,buttheotheroptionsbelowarenotavailableintheapp.
Alternately,studentscanprintthesignaturepage,signit,andmailittotheprocessor.Iftheprocessordoesn’t
receivethesignaturepagewithin14calendardaysofreceivingtheapplicationdata,itwillmaila“reject16”
(missingstudentsignature)SARtothestudent,whichthestudentcansignandreturn.Ifthestudentchoosesnot
toprintandsendasignaturepage,orifnoprinterwasavailable,theprocessorwon’twait14daystoprinta
rejectedSARforthestudentbutwillgenerateonewithin72hoursofreceivingthedata.Seetheannouncementof
March18,2019,foralistofwhatarevalidandinvalidsignatures.
IfthestudentindicatedonanelectronicFAFSAformthatheorshewouldprint,sign,andmailinasignaturepage
buttheprocessorhasnotreceivedthesignaturepage,thestudentcancalltheFSAICandhavetheirrecord
releasedfromtheFAFSAholdfile.Becausenosignaturepagehasbeenreceived,theFAFSAprocessorwill
producearejectedSARandmailittothestudenttosignandreturn.Theprocessorwillacceptthefirstsignature
documentitreceives—eitherthesignedsignaturepageorthesignedSAR.
SchoolsandstatesreceiveISIRsforrejectedrecords.Astudent’sreject16SARandhisorherISIRwillreflectthe
datathatheorsheprovidedontheapplication;however,theCPSwon’tcalculateanofficialEFCforthestudent
(anunofficialEFCthatcannotbeusedtoawardordisburseaidwillappearontheISIR)ordoanydatabase
matchesuntilitreceivesasignedsignaturepage,asignedSAR,oranelectronicsignature.Aschoolcanalso
collecttherequired“wet”signaturesattheschool,eitherontheSARoradocumentthathastherequired
certificationstatements(FAAAccessallowsschoolstoprintoutasignaturepagefortheISIR).Theschoolcanthen
submitanelectroniccorrectionshowingthatthesignatureshavebeenprovided.
Whenaparentofadependentstudentdoesn’tsignwithhisorherownFSAID,thestudentcanprintasignature
pagefortheparent.Ifthestudentindicatesthatnoprinterwasavailable,theCPSwillgeneratea“reject15”
(missingparentsignature)outputdocumentforthestudentwithin72hours.Ifthestudentindicatedheorshe
wouldsendinasignaturepage,theprocessorwillwaitupto14calendardaystoreceivethesignedpage.Ifit
doesn’treceiveasignedsignaturepageafter14days,itwillgenerateareject15SARandsendittothestudent.
ThestudentmusthaveaparentsigntheSARandmustsenditbacktotheaddressontheSAR.Forreject15
records,astudent’sSARandISIRwillreflectthedataprovidedontheapplication,buttheprocessorwon’t
calculateanEFCforthestudentuntilitreceivestheparent’selectronicsignatureorthesignedSARorsignature
page.
SignaturerequirementsforchangesmadeaftertheFAFSAformisfiledwillbediscussedinChapter4.
Student Mustsignstatementthat
dataareaccurateandother
conditionsaremet(onpaper
FAFSA,websummary,or
signaturepageorbyusing
theFSAID)
IRSDataRetrievalTool(DRT)ortaxreturn
transcript(whichdoesnotneedtobesigned).In
rareinstanceswhenthetaxreturnisused,itmust
besignedbythestudent(orspouse),orthetax
preparermustprovidehisorhernameandSSN,
EIN,orPTIN.
Mustsign
documents
usedto
verifyFAFSA
data
Parent(s)(if
studentis
dependent)
Oneparentmustsign
statementthatdataare
accurate(onpaperFAFSA,
websummary,orsignature
pageorbyusingtheFSAID)
DRTortaxreturntranscript(whichdoesnotneedto
besigned).Inrareinstanceswhenthetaxreturnis
used,itmustbesignedbyoneparent,orthetax
preparermustprovidehisorhernameandSSN,
EIN,orPTIN.
Oneparent
mustsign
documents
usedto
verifyFAFSA
data.
Aid
Administrator
Mustcertifyifoverriding
dependencystatusorusing
PJ(can’tbedoneinthe
FAFSAonline)
N/A N/A
SignatureRequirementsforChanges*
ChangesviaSARorCorrectionsontheWeb Changessubmitted
viaFAAAccess
Professional
Judgmentvia
FAAAccess
Student MustsigncorrectionsstatementontheSAR;onthe
webtheFSAIDservesasthestudent’ssignature.
N/A N/A
Parent(s)(if
studentis
dependent)
Ifparentdataarechanged,oneparentmustsign
withFSAIDontheweb,signthecorrections
statementontheSAR,orprintandsignthesignature
page.
N/A N/A
Aid
Administrator
N/A Schoolmusthave
signed
documentationfrom
studentandparent
Mustcertifyfor
PJ/FAAadjustments
ordependency
override
*TheserequirementsapplytoanysubmissionofchangestotheCPS,whetherrequiredbyregulation(forPellGrantrecipientsorcorrectionstodata
matchitems)oratthediscretionofthefinancialaidadministrator(forCampus-BasedaidandDirectLoans).See“SubmittingchangesviaFAAAccess
toCPSOnlineorEDE”inChapter4forafullerexplanationofwhatisrequiredwhensubmittingchangestotheCPS.
Chapter3
ExpectedFamilyContribution(EFC)
TheEFCisameasureofhowmuchthestudentandhisorherfamilycanbeexpectedtocontributetothecostofthe
student’seducationforagivenawardyearandcanimpactastudents’eligibilityforcertaintypesoffederalstudentaid.
TheEFCiscalculatedaccordingtoaformulaspecifiedinthelaw,andexplainedindetailinthischapter.
GeneralInformation
AllthedatatheCentralProcessingSystem(CPS)usestocalculatetheEFCcomefromtheinformationstudentsprovideon
theFAFSAform.TheEFCformulausesmanyvariables,includingincome,assets,thenumberofpersonsinthehousehold,
andthenumberofthoseattendingcollegefortheawardyear.
EveryyeartheDepartmentpublishesupdatedtablesusedintheEFCcalculation.The2022-2023updatescanbefoundin
theJuly19,2021FederalRegister.AlsoupdatedeachyearistheDepartment’sEFCFormulaGuidewhichisavailableat
fsapartners.ed.gov/knowledge-centerintheLibrarysectionunderResourceType>Handbooks,Manuals,orGuides>
2022-2023ExpectedFamilyContribution(EFC)FormulaGuide.
Thelaw(seeHEASec.474–479)givesthreeregularEFCformulas:oneeachfordependentstudents,independent
studentswithoutdependentsotherthanaspouse,andindependentstudentswithdependentsotherthanaspouse
(FormulasA,B,andCrespectively).TherearetwovariantsoftheregularEFCcalculation:asimplifiedformulawithfewer
dataelementsforeachgroupabove,andanautomaticzeroEFCforFormulaAandCstudents.
SimplifiedFormula
Thesimplifiedformulaisbasicallythesameastheregularformulaexceptthatassetinformationisn’tconsideredinthe
calculation.Adependentstudentqualifiesforthesimplifiedcalculationif:
theparents’combined2020adjustedgrossincome(AGI,fortaxfilers)orincomeearnedfromwork(fornon-filers)
waslessthan$50,000,AND
either(1)theparentsdidnotfileSchedule1withtheirIRSForm1040,1(2)oneofthemisadislocatedworkeras
definedintheWorkforceInnovationandOpportunityAct(seeChapter2foradescriptionofdislocatedworker),or(3)
anyonecountedintheirhouseholdsize(asdefinedontheFAFSAformandinChapter2)receivedameans-tested
federalbenefitduring2020or2021.2
Anindependentstudentqualifiesforthesimplifiedcalculationif:
thestudent’sandspouse’scombined2020AGI(taxfilers)orincomeearnedfromwork(non-filers)waslessthan
$50,000,AND
either:(1)thestudentandspousedidnotfileSchedule1withtheirIRSForm1040,1(2)oneofthemisadislocated
workerasdefinedintheWorkforceInnovationandOpportunityAct(seeChapter2foradescriptionofdislocated
worker),or(3)anyonecountedinthehouseholdsize(asdefinedontheFAFSAformandinChapter2)receiveda
means-testedfederalbenefitin2020or2021.2
TheFAFSAwebsitehasathresholdquestionthatallowstheassetquestionstobeskippedwhenthestudentseems
eligibleforthesimplifiedformulaoranautomaticzeroEFC.Butinsomeinstances,suchaswhenusingapaperFAFSA
form,astudentwhoqualifiesforthesimplifiedformulawillprovideassetinformation.InthosecasestheCPSwillcalculate
twoEFCs:oneusingtheassetsandoneexcludingthem.TheEFCfromthesimplifiedformula(whichexcludesassets)is
calledtheprimaryEFCandisprintedonthefrontofthestudent’sSAR,whiletheEFCfromthefullcalculationiscalledthe
secondaryEFCandisprintedintheFAAInformationsection.Todeterminethestudent’sfederalaid,theschoolmustuse
theprimaryEFC,whichwillalwaysbelessthanorequaltothesecondaryEFC.Ifitturnsoutthatthestudentwasnot
eligibleforthesimplifiedformulaanddidnotprovideassetinformation,theschoolmustcorrectandsubmittherecord
andusetheEFCreportedontheresultingtransaction.
1ThisincludesthosewhofiledaSchedule1onlytoreportoneormoreofthefollowing:unemploymentcompensation,AlaskaPermanentFund
dividends,educatorexpenses,IRAdeductions,orthestudentloaninterestdeduction.Italsoincludesthosewhowerenotrequiredtofilea1040
returnandthosewhofiledareturnforoneofthefollowingTrustTerritories:PuertoRico,Guam,AmericanSamoa,theVirginIslands,theRepublicof
theMarshallIslands,theFederatedStatesofMicronesia,orPalau.
2Themeans-testedfederalbenefitprogramsare:
Medicaid(includingtheChildren’sHealthInsuranceProgram)orSupplementalSecurityIncome(SSI)
SupplementalNutritionAssistanceProgram(SNAP)benefits,alsoknownasfoodstamps
TheFreeandReducedPriceSchoolLunchProgram
TemporaryAssistanceforNeedyFamilies(TANF)–mayuseadifferentnameindifferentstates
SpecialSupplementalNutritionProgramforWomen,Infants,andChildren(WIC)
Apersonneednothavereceivedthebenefitforanentireyear;receivingitatanytimeinthebaseorfollowingyearqualifies.Also,anFAAmayuse
professionaljudgment(PJ)tocountabenefitifapersondidnotreceiveitduringthose24monthsbutisreceivingitnow.
AutomaticZeroEFC
ThelawalsoprovidesforanautomaticzeroEFCforsomestudents.Therulesfordeterminingwhoqualifiesforthisvariant
arethesameasthoseforthesimplifiedformulawiththesedifferences:
Theincomethresholdis$27,000orlessinsteadoflessthan$50,000.
It(theautomaticzeroEFC)isnotavailabletoindependentstudentswithoutdependentsotherthanaspouse(those
whouseFormulaB).
SkiplogicintheonlineFAFSAformwillallowthesestudentstoanswerfewerquestions,andiftheyareselectedfor
verification,feweritemsarerequired.
DepartmentofDefenseMatchandIraqandAfghanistanServiceGrant
SchoolswillconsidertheEFCtobezeroforPell-eligiblestudentswithaparentorguardianwhowasamemberoftheU.S.
ArmedForcesandwhodiedasaresultofserviceinIraqorAfghanistanafterSeptember11,2001.Thesestudentsmust
havebeenlessthan24yearsoldorenrolledincollegewhentheparentorguardiandied.
TheCPSwillmatchapplicationsagainstafileprovidedbytheDepartmentofDefense(DOD).Ifamatchisfound,a
personalizedletterwillbesenttothestudentexplainingthepotentialincreaseinfunding,theDODmatchflagwillbeset
to“Y”ontheISIR,andadatewillappearintheparent’sdateofdeathfield(which,outofsensitivity,willnotbenotedon
theSAR).TheCPSwillcalculateanEFCnormally;theschoolshoulduseazeroEFCwhenpackagingqualifyingstudents.
StudentsinthissituationwhoarenotPelleligiblebecausetheirEFCistoohighwillbeabletoreceiveanIraqand
AfghanistanServiceGrant(seeVolume1,Chapter6).TheamountofthegrantwillbethesameasthatofthePellGrant
theywouldhavebeeneligibleforwithazeroEFCminusasetpercentage(seeChapter3ofVolume3forspecific
guidanceoncalculatinggrantawards).However,forthesestudentstheschoolusestheEFCcalculatedbytheCPSfor
packaginginsteadofzero.
ChildrenofFallenHeroesScholarshipAct
AutomaticzeroEFC
HEASec.479(c)
UndertheChildrenofFallenHeroesScholarshipAct(CFH),anotherwisePell-eligiblestudentwhoseparentorguardian
diedasaresultofactiveserviceinthelineofdutyasaPublicSafetyOfficershallreceivethemaximumPellGrantifthe
studentwaslessthan24yearsoldwhentheparentorguardiandiedorwasenrolledataninstitutionofhighereducation
atthetimeoftheparentorguardian’sdeath.
AschoolmustuseanEFCof0topackageallfederalstudentaidifthestudentmeetingtheabovecriteriahasaPell-
eligibleEFC.ForstudentswhoareeligiblefortheChildrenofFallenHeroesbenefits,schoolsmustsettheeligibilityflag
402inFAAAccessforthestudent.PleasenotethatunliketheIraqandAfghanistanServiceGrant,ifastudentisnotPell
eligible,thestudentisnoteligibleforaseparateChildrenofFallenHeroesScholarship(noseparategrantfunds).
Formoreinformation,pleasereviewVolume1,Chapter6.
AlternateEFCS
ThelawspecifieshowtheEFCofadependentstudentismodifiedifthestudentisgoingtoenrollforotherthananine-
monthperiod.TheEFCfoundintheupperrightcornerofthefirstpageoftheoutputdocumentisbasedonanine-month
enrollmentperiodandshouldalwaysbeusedforawardingaPellGrant,evenifthestudentisattendingforalongeror
shorterperiod.ThesecondsectionoftheFAAinformationareahasatableofalternateprimaryandsecondaryEFCsfor1–
12monthsthatyoumustusetoawardaid(otherthanPellgrants)tostudentsattendingforotherthanninemonths.
TheEFCWorksheets
TofurtherassistschoolswiththeEFCcalculationprocess,the2022-2023EFCFormulaGuidecontainsEFCworksheetsand
tablesforeachformula(A,BandC),whichcanbeusedtomanuallycalculateanEFCortoseehowtheEFCisdetermined
foreachoftheformulas.ForitemstakenfromtheFAFSAform,theworksheetsindicatethecorrespondingFAFSA/SARline
numbers.Ontheworksheetsforthesimplifiedformula,thepartsofthecalculationthataren’tusedaregrayedout.
ThefollowinginformationprovidesadditionalinsightintotheEFCcalculationprocessandmayprovehelpfulwhen
reviewingtheEFCworksheetsintheEFCFormulaGuide.
NegativeAGIorzero?
TheFAFSAformasksfortheAGI(thatappearsonthetaxreturn),whichcanbeanegativenumber.Ifyouaredoinga
handcalculationoftheEFC,you’llnoticethatthefirstlineoftheworksheetforFormulaAcitestheFAFSAlinenumberand
instructsyoutosubstituteazeroiftheAGIisnegative.Thisdoesnotmeanthatthestudentorparentshouldreporta
negativeAGIasazeroontheFAFSAform.TheCPSwillchangethevaluetozero,anditmakesassumptionsthatyouwill
notmakewhencompletinganEFCworksheetbyhand.WhenfillingouttheFAFSAform,theapplicantshouldusetheAGI
asitappearsonthetaxreturn,evenifitisanegativenumber.
FormulaA-DependentStudents
TheEFCforadependentstudentiscalculatedusingtheFAFSAdataforthestudentandhisorherparents.TheCPS
calculatestheparents’contribution(whichincludestheirassets),thestudent’scontributionfromincome,andthe
student’scontributionfromassets;theEFCisthesumofthesethree.
Underthesimplifiedformula,theparents’contributiondoesn’tincludeassets,noristhestudent’scontributionfrom
assetscounted.
Parents’contribution
Theparents’availableincomeandcontributionfromassetsarefirstdetermined,andthentheseareusedwiththe
numberincollegetocalculatetheparents’contribution.
Parents’availableincome.Theparents’availableincomeiscalculatedbysubtractingcertainallowancesfromthe
parents’totalincome.Theseallowancesaccountforcertainnondiscretionaryexpenses,suchastaxesandbasicliving
expenses.Onceaminimumlevelofsupporthasbeenoffsetforthoseexpenses,theformulaassumesthattheremaining
incomeisavailablefordiscretionarypurposes,includingpayingforapostsecondaryeducation.Theavailableincomecan
beanegativenumber.
Thetotalincomeisthesumofthetaxableanduntaxedincome,minusamountsreportedintheincomebutexcludedfrom
theformula.Iftheparentsaretaxfilers,theparents’AGIasreportedontheFAFSAformistheamountoftheparents’
taxableincomeusedinthecalculation.Iftheparentsarenottaxfilers,thecalculationusestheparents’reportedincome
earnedfromwork.Totalincomecanbeanegativenumber.
Thesumofthefollowingallowancesreducestheparents’totalincome:
U.S.incometaxpaid.UsetheamountreportedontheFAFSAform.Non-taxfilersdon’treceivethisallowance.If
thisisanegativeamount,itissettozero.
Stateandothertaxallowance.UseTable1.Thisallowanceisapercentageofparents’totalincomeand
approximatestheaverageamountpaidinstateandothertaxes.Thepercentagevariesaccordingtothestateand
accordingtowhethertheparents’totalincomeisbelow$15,000oris$15,000ormore.Thestateusedisthe
parents’stateoflegalresidencereportedontheFAFSAform.Ifthisitemisblankorinvalid,thestudent’sreported
stateoflegalresidenceisused.Ifbothareblankorinvalid,thestateinthestudent’smailingaddressisused.Ifall
threeareblankorinvalid,the"Other"rateshowninTable1forablankorinvalidstateisused(2%fortotalincome
below$15,000;1%fortotalincomeof$15,000ormore).Iftheallowanceisanegativeamount,it’ssettozero.
Parents’SocialSecuritytaxallowance.Theparents’SocialSecuritytaxesarecalculatedseparatelybyapplying
theratesshowninTable3tobothparents’incomeearnedfromworkin2020(asreportedontheFAFSAform).The
totalallowanceforSocialSecuritytaxesisneverlessthanzero.
Incomeprotectionallowance.UseTable4.Thisallowanceisforthebasiclivingexpensesofafamily.Itvaries
accordingtothenumberintheparents’householdandthenumberincollegein2022-2023,asreportedonthe
FAFSAform.Ingeneral,aschoolcanassumethat30%oftheincomeprotectionallowanceamountisforfood,22%
forhousing,9%fortransportationexpenses,16%forclothingandpersonalcare,11%formedicalcare,and12%for
otherfamilyconsumption.Theincomeprotectionallowanceusedforaparticularstudentisprovidedasoneofthe
intermediatevaluesintheFAAInformationSectionoftheoutputdocument(labeledas“IPA”).
Employmentexpenseallowance.Familieswithtwoworkingparentsandone-parentfamilieshaveextraexpenses
thatmustbeconsidered,suchashousekeepingservices,transportation,clothingandupkeep,andmealsawayfrom
home.Thisallowancerecognizesthoseextraexpenses.Fortwoworkingparents,theallowanceis35%ofthelesser
ofthefirstorsecondparent’sincomeearnedfromwork(questions86and87),butmaynotexceed$4,000.Forone-
parentfamilies,theallowanceis35%oftheparent’sincomeearnedfromwork,alsonottoexceed$4,000.Ifa
student’sparentsaremarriedandonlyoneparentreportsanincomeearnedfromwork,theallowanceiszero.The
employmentexpenseallowanceisneverlessthanzero.
Parents’contributionfromassets.Thefullformulausestheassetsofparentsofadependentstudentanddetermines
a“contributionfromassets.”Thisamountiscombinedwithavailableincometogiveanaccuratepictureofthefamily’s
financialstrength.Inthesimplifiedformulaassetsaren’tcounted.
First,theparents’networthiscalculatedbyaddingassetsreportedontheFAFSAform.Thenetworthofabusinessora
farmisadjustedtoprotectaportionoftheseassets.UseTable6tocalculatetheamounttobeused.
Second,theparents’discretionarynetworthiscalculatedbysubtractingtheeducationsavingsandassetprotection
allowance(Table7)fromtheparents’networth.Aswithincome,thisisdonetoprotectaportionoftheassets.The
allowancesforages40through65approximatethepresentcostofanannuitythat,whencombinedwithSocialSecurity
benefits,wouldprovideamoderateleveloflivingforaretiredcoupleorsinglepersonatage65.AsshowninTable7,the
allowanceincreaseswiththeageoftheolderparentasofDecember31,2022(asreportedontheFAFSAform)toindicate
thecostofpurchasingsuchanannuityatagivenage.Discretionarynetworthmaybelessthanzero.
Finally,thediscretionarynetworthismultipliedbytheconversionrateof12%togettheparents’contributionfrom
assets,whichrepresentstheportionofparentalassetsconsideredavailabletohelppayforthestudent’scollege
education.Ifthecontributionfromassetsisnegative,itissettozero.
Calculationofparents’contribution.Thisisthefinalstepindeterminingtheparents’contribution.Theparents’
availableincomeandcontributionfromassetsareaddedtogethertodeterminetheparents’adjustedavailableincome,
whichcanbeanegativenumber.Thetotalparents’contributionfromadjustedavailableincomeiscalculatedfromthe
amountsandratesinTable8andisthetotalamountparentsareexpectedtocontributetowardalloftheirfamily’s
postsecondaryeducationalcosts.TheratesinTable8increasefrom22%to47%astheadjustedavailableincome
increases.Thisisbasedontheprinciplethatasincomeincreasesbeyondtheamountneededtomaintainabasic
standardofliving,theportionusedforfamilymaintenancedecreasesandtheportionavailablefordiscretionarypurposes
increases.Therefore,aprogressivelylargeramountofincomemaybecontributedtowardpostsecondaryeducational
costs.Ifthetotalparents’contributionfromadjustedavailableincomeisnegative,itissettozero.
Theparents’contributionfortheindividualstudentisthencalculatedbydividingthetotalparents’contributionfrom
adjustedavailableincomebythenumberincollegein2022-2023,asreportedontheFAFSAform.Parentsarenot
includedinthenumberattendingcollege.
Student’scontributionfromincome
Todeterminethestudent’scontributionfromincome,thestudent’savailableincome(AI)isfirstcalculatedbysubtracting
totalallowancesfromthestudent’stotalincome.TheAIisthenassessedatarateof50%toobtainthestudent
contributionfromavailableincome.Ifthestudentcontributionfromavailableincomeislessthanzero,it’ssettozero.
Aswiththeparents’incomeinformation,thestudent’stotalincomeiscalculatedusinginformationfromhisorherFAFSA
form.Thestudent’stotalincomeisthesumoftheirtaxableanduntaxedincome,minusamountsreportedintheincome
butexcludedfromtheformula(seeChapter2formoreontheseexclusions).Ifthestudentisataxfiler,hisorherAGIas
reportedontheFAFSAformistheamountoftaxableincomeusedinthecalculation.Ifthestudentisnotataxfiler,the
calculationuseshisorherreportedincomeearnedfromwork.Thetotalincomemaybeanegativenumber.
Theallowancesarecalculatedbyaddingthefollowing:
U.S.incometaxpaid.UsetheamountreportedontheFAFSAform.Non-taxfilersdon’treceivethisallowance.If
thisisanegativeamount,it’ssettozero.
Stateandothertaxallowance.UseTable2.Thisallowanceisapercentageofthestudent’stotalincomethat
variesaccordingtothestate.Thestatetobeusedisthestudent’sstateoflegalresidencereportedontheFAFSA
form.Ifthatitemisblankorinvalid,thestateinthestudent’smailingaddressisused.Ifbothitemsareblankor
invalid,theparents’stateoflegalresidenceisused.Ifallthreeitemsareblankorinvalid,the"Other"rateforablank
orinvalidstateinTable2isused(1%).Iftheallowanceisanegativeamount,it’ssettozero.
SocialSecuritytaxallowance.Thestudent’sSocialSecuritytaxesarecalculatedbyapplyingtheratesshownin
Table3tothestudent’sincomeearnedfromworkin2020(asreportedontheFAFSAform).Thetotalallowancefor
SocialSecuritytaxesisneverlessthanzero.
Incomeprotectionallowance.Theincomeprotectionallowanceforadependentstudentis$7,040.
Parent’snegativeAAI.Torecognizethatastudent’sincomemaybeneededtohelpsupportthefamily,theEFC
calculationallowsaparent’snegativeadjustedavailableincome(AAI)toreduceadependentstudent’scontribution
fromincome.Becausethestudent’scontributionfromincomecannotbenegative,thiswillnotaffectthestudent’s
contributionfromassets.
Student’scontributionfromassets
Thestudent’sassetsaretreatedthesamewayastheparents’assetswiththreedifferences:thereisnoadjustmenttothe
networthofabusinessorfarm,thereisnoeducationsavingsandassetprotectionallowance,andnetworthisassessed
attherateof20%.Rememberthatunderthesimplifiedformulathereisnostudentcontributionfromassets.
Thestudent’snetworthiscalculatedbyaddingassetsreportedontheFAFSAform(negativeamountsareconvertedto
zeroforthiscalculation).Thenetworthismultipliedby20%toobtainthestudent’scontributionfromassets,whichisthe
portionofassetsconsideredavailabletohelppayforhisorherpostsecondaryeducation.
Calculationofstudent’sEFC
Thestudent’sEFCisdeterminedbyaddingtheparents’contribution,thestudent’scontributionfromavailableincome,
andhisorhercontributionfromassets.Ifthestudentqualifiedforthesimplifiedformula,hisorhercontributionfrom
assetsisnotcounted,andtheparents’contributionisdeterminedwithoutusingtheirassets.
AlternateEFCsforotherthannine-monthenrollment
Thestandardparents’contributionisforanine-monthenrollmentperiod.Forashorterperiod,theparents’contributionis
proratedaccordingtothenumberofmonthsofenrollment.Thestudent’scontributionfromavailableincomeisalso
proratedandthenaddedtothestudentassetcontribution,whichisnotprorated.Foranenrollmentofmorethannine
months,theparents’contributioniscalculatedbyadjustingthestandardnine-monthformulaonpage3ofWorksheetAof
theEFCworksheets,andthestudent’scontributionremainsatthenine-monthamount.
FormulaB—IndependentStudentWithoutDependentsOtherThanA
Spouse
TheEFCforanindependentstudentwithoutdependentsotherthanaspouseiscalculatedusingFAFSAdataforthe
studentandspouse.TheCPScalculatesacontributionfromavailableincomeandacontributionfromassets.Thesumof
thesetwoisdividedbythenumberincollegein2022-2023,asreportedontheFAFSAform.TheresultistheEFCforthe
2022-2023awardyear.Underthesimplifiedformula,thecontributionfromassetsisnotused.
Contributionfromavailableincome
Thestudent’savailableincome,whichcanbeanegativenumber,iscalculatedbysubtractingthetotalallowancesfrom
thetotalincome.Theseallowancesaccountforcertainnondiscretionaryexpenses,suchastaxesandbasicliving
expenses.Onceaminimumlevelofsupporthasbeenprovidedtomeetthoseexpenses,theformulaassumesthatthe
remainingincomeisavailablefordiscretionarypurposes,includingpayingforapostsecondaryeducation.Theavailable
incomeisthenassessedatarateof50%toobtainthestudent’scontributionfromavailableincome.
Totalincome.Thetotalincomeisthesumofthestudent’sandtheirspouse’s(ifthestudentismarried)taxableand
untaxedincome,minusamountsreportedintheincomeontheFAFSAformbutexcludedfromtheformula(seeChapter2
formoreontheseexclusions).Ifthestudentandspousearetaxfilers,theirAGIasreportedontheFAFSAformisthe
amountoftaxableincomeusedinthecalculation.Iftheyarenottaxfilers,thecalculationusesreportedincomeearned
fromwork.Untaxedincomeisincludedintheformulabecauseitmayhaveaconsiderableeffectonthefamily’sfinancial
strengthand,insomecases,maybethefamily’smainsourceofincome.Thetotalincomecanbeanegativenumber.
Allowancesagainstincome.Totalallowancesarecalculatedbyadding:
U.S.incometaxpaid.UsetheamountreportedontheFAFSAform.Non-taxfilersdon’treceivethisallowance.If
thisisanegativeamount,it’ssettozero.
Stateandothertaxallowance.UseTable2.Thisallowanceisapercentageofthestudentandspouse’stotal
income.Thepercentagevariesaccordingtothestate.Thestatetobeusedisthestudent’sstateoflegalresidence
reportedontheFAFSAform.Ifthatitemisblankorinvalid,thestateinthestudent’smailingaddressisused.Ifboth
itemsareblankorinvalid,the"Other"rateforablankorinvalidstateisused(1%).Iftheallowanceisanegative
amount,it’ssettozero.
SocialSecuritytaxallowance.Thestudentandspouse’sSocialSecuritytaxesarecalculatedseparatelyby
applyingthetaxratesshowninTable3tothestudent’sandspouse’sincomeearnedfromworkin2020(asreported
ontheFAFSAform).ThetotalallowanceforSocialSecuritytaxesisneverlessthanzero.
Incomeprotectionallowance.Theincomeprotectionallowanceis$10,950forsinglestudentsandformarried
studentswhosespouseisenrolledatleasthalftime.Theallowanceis$17,550formarriedstudentswhosespouse
isn’tenrolledatleasthalftime.
Employmentexpenseallowance.Familieswithtwoworkingspouseshaveextraexpensesthatmustbe
considered,suchashousekeepingservices,transportation,clothingandupkeep,andmealsawayfromhome.This
allowancerecognizesthoseextraexpenses.Ifthestudentisn’tmarriedorisseparated,theemploymentexpense
allowanceiszero.Ifthestudentismarriedbutonlyonepersonisworking(eitherthestudentorthestudent’s
spouse),theallowanceiszero.Ifboththestudentandhisspouseareworking,theallowanceis35%ofthelesserof
thestudent’sincomeearnedfromwork(Question38)orthespouse’sincomeearnedfromwork(Question39),butit
maynotexceed$4,000.
Contributionfromassets
Forstudentswhoqualifyforthesimplifiedformula,thereisnocontributionfromassets.Inthefullformula,theassetsof
anindependentstudentwithnodependentsotherthanaspouseareconsideredinordertofullymeasurethefamily’s
abilitytocontributetowardpostsecondaryeducationalcosts.
First,thenetworthofthestudentandspouse’sassetsiscalculatedbyaddingassetsreportedontheFAFSAform.The
networthofabusinessorafarmisadjustedtoprotectaportionofthenetworthoftheseassets.UseTable6tocalculate
theamounttobeused.
Second,thestudentandspouse’sdiscretionarynetworthiscalculatedbysubtractingtheassetprotectionallowance
(Table7)fromthenetworth.TheallowanceincreaseswiththeageofthestudentasofDecember31,2022,whichmay
bedeterminedfromthestudent’sdateofbirthasreportedontheFAFSAform.Thisisdonetoprotectaportionofassets
thatmaybeneededforpurposesotherthaneducation,suchasemergenciesorretirement.Discretionarynetworthcan
belessthanzero.
Finally,thediscretionarynetworthismultipliedbytheconversionrateof20%toobtainthestudentandspouse’s
contributionfromassets,whichrepresentstheportionofthevalueoftheassetsthatisconsideredavailabletohelppay
forthestudent’scollegeeducation.Ifthecontributionfromassetsislessthanzero,it’ssettozero.
Calculationofstudent’sEFC
Thestudent’sEFCisdeterminedbyaddingthestudentandspouse’scontributionfromavailableincometotheir
contributionfromassetsandthendividingthesumbythenumberincollegein2022-2023,asreportedontheFAFSA
form.Ifthestudentqualifiedforthesimplifiedformula,thecontributionfromassetsisexcludedfromthecalculationof
theEFC.
AlternateEFCsforotherthannine-monthenrollment
ThestandardEFCisforanine-monthenrollmentperiod.Ifthestudentwillbeenrolledforlessthanninemonths,theEFC
issimplyproratedbydividingitbynineandthenmultiplyingtheresultbythenumberofmonthsthestudentwillbe
enrolled.Foranenrollmentofmorethanninemonths,however,theEFCremainsatthenine-monthamount.
FormulaC—IndependentStudentWithDependentsOtherThanASpouse
TheEFCforanindependentstudentwithdependentsotherthanaspouseiscalculatedusingtheinformationforthe
studentandspouseprovidedontheFAFSAform.Theformulaisalmostthesameastheformulafortheparentsofa
dependentstudent.Therearethreebasicsteps.First,thestudent’savailableincomeisdetermined.Then,thestudent’s
contributionfromassetsiscalculated.Finally,theEFCiscalculatedusingtheavailableincome,thecontributionfrom
assets,andthenumberincollege.
Availableincome
Availableincomeiscalculatedbysubtractingallowancesfromthestudent’stotalincome.Theseallowancesaccountfor
certainnondiscretionarycosts,suchastaxesandbasiclivingexpenses,andrepresentaminimumlevelofsupport.The
formulaassumesthattheremainingincomeisavailablefordiscretionarypurposes,includingpayingforapostsecondary
education.Theavailableincomecanbeanegativenumber.
Student’stotalincome.Thestudent’stotalincomeisthesumofthestudent’sandtheirspouse’s(ifthestudentis
married)taxableanduntaxedincome,minusamountsreportedintheincomeontheFAFSAformbutexcludedfromthe
formula(seeChapter2formoreinformationontheseexclusions).Ifthestudentandspousearetaxfilers,AGIasreported
ontheFAFSAformistheamountoftaxableincomeusedinthecalculation.Iftheyarenottaxfilers,thecalculationuses
reportedincomeearnedfromwork.Thetotalincomecanbeanegativenumber.
Allowancesagainstincome.Totalallowancesarecalculatedbyadding:
U.S.incometaxpaid.UsetheamountreportedontheFAFSA.Non-taxfilersdon’treceivethisallowance.Ifthisisa
negativeamount,itissettozero.
Stateandothertaxallowance.UseTable1.Thisallowanceisapercentageofthetotalincomeandapproximates
theaverageamountpaidinstateandothertaxes.Thepercentagevariesaccordingtothestateandaccordingto
whetherthetotalincomeisbelow$15,000oris$15,000ormore.Thestatetobeusedisthestudent’sstateoflegal
residencereportedontheFAFSAform.Ifthisitemisblankorinvalid,thestateinthestudent’smailingaddressis
used.Ifbothitemsareblankorinvalid,the"Other"rateforablankorinvalidstateisused(2%fortotalincome
below$15,000;1%fortotalincomeof$15,000ormore).Iftheallowanceisanegativeamount,it’ssettozero.
SocialSecuritytaxallowance.Thestudent’sandspouse’sSocialSecuritytaxesarecalculatedseparatelyby
applyingthetaxratesshowninTable3tothestudent’sincomeearnedfromworkandthespouse’sincomeearned
fromworkin2020(asreportedontheFAFSAform).ThetotalallowanceforSocialSecuritytaxesisneverlessthan
zero.
Incomeprotectionallowance.UseTable5.Thisallowanceprovidesforthebasiclivingexpensesofafamily.It
variesaccordingtothenumberinthestudent’shouseholdandthenumberincollegein2022-2023,asreportedon
theFAFSAform.Ingeneral,aschoolcanassumethat30%oftheincomeprotectionallowanceisforfood,22%for
housing,9%fortransportationexpenses,16%forclothingandpersonalcare,11%formedicalcare,and12%for
otherfamilyconsumption.Theincomeprotectionallowanceusedforaparticularstudentisprovidedasoneofthe
intermediatevaluesintheFAAInformationSectionoftheoutputdocument(labeledas“IPA”).
Employmentexpenseallowance.Familieswithtwoworkingparentsandone-parentfamilieshaveextraexpenses
thatmustbeconsidered,suchashousekeepingservices,transportation,clothing,upkeep,andmealsawayfrom
home.Thisallowancerecognizesthoseextraexpenses.Whenboththestudentandspousework,theallowanceis
35%ofthelesserofthestudent’sincomeearnedfromwork(Question38)orthespouse’sincomeearnedfromwork
(Question39),butmaynotexceed$4,000.Ifthestudentisn’tmarried,theallowanceis35%ofthestudent’sincome
earnedfromwork,or$4,000,whicheverisless.Ifastudentismarriedandonlythestudentorthespouse(butnot
both)reportsanincomeearnedfromwork,theallowanceiszero.Theemploymentexpenseallowanceisneverless
thanzero.
Contributionfromassets
Inthefullformula,theassetsofanindependentstudentwithdependentsotherthanaspouseareconsideredinorderto
fullymeasurethefamily’sabilitytocontributetowardpostsecondaryeducationalcosts.Theformuladeterminesa
“contributionfromassets,”anamountthatiscombinedwithavailableincometogiveanaccuratepictureofthefamily’s
financialstrength.Inthesimplifiedformula,theassetsarenotcountedatall.
First,thenetworthofastudentandspouse’sassetsiscalculatedbyaddingassetsreportedontheFAFSAform.Thenet
worthofabusinessorfarmisadjustedtoprotectaportionoftheseassets.UseTable6tocalculatetheamounttobe
used.
Second,thestudentandspouse’sdiscretionarynetworthiscalculatedbysubtractingtheassetprotectionallowance
(Table7)fromthenetworth.TheallowanceincreaseswiththeageofthestudentasofDecember31,2022,whichmay
bedeterminedfromthestudent’sdateofbirthasreportedontheFAFSAform.Thisisdonetoprotectaportionofassets
thatmaybeneededforpurposesotherthaneducation,suchasemergenciesorretirement.Discretionarynetworthcan
belessthanzero.
Finally,thediscretionarynetworthismultipliedby7%toobtainthecontributionfromassets,whichistheportionof
thevalueofthestudent’sandspouse’sassetsconsideredtobeavailabletohelppayforthestudent’spostsecondary
education.Ifthecontributionfromassetsislessthanzero,itissettozero.
Calculationofstudent’sEFC
ThisisthefinalstepindeterminingtheEFCfortheindependentstudentwithdependentsotherthanaspouse.The
availableincomeandthecontributionfromassetsareaddedtogethertoobtaintheadjustedavailableincome.The
adjustedavailableincomecanbeanegativenumber.Thetotalcontributionfromadjustedavailableincomeiscalculated
fromusingTable8.Thisisthetotalamountthestudent’sfamilyisexpectedtocontributetowardfamilypostsecondary
educationalcosts.TheratesinTable8increasefrom22%to47%astheadjustedavailableincomeincreases.Therateis
basedontheprinciplethatasincomeincreasesbeyondtheamountneededtomaintainabasicstandardofliving,the
portionusedforfamilymaintenancedecreases,whiletheportionavailablefordiscretionarypurposesincreases.The
largertheincome,theeasieritisforafamilytocontributetowardpostsecondaryeducationalcostswithlesseffectonthe
maintenanceofthefamily.Ifthetotalcontributionfromadjustedavailableincomeisnegative,itissettozero.
Dividingthetotalstudent’scontributionfromadjustedavailableincomebythenumberincollege,asreportedonthe
FAFSAform,yieldstheEFCforthe2022–2023awardyear.
AlternateEFCsforotherthannine-monthenrollment
ThestandardEFCisforanine-monthenrollmentperiod.Ifthestudentwillbeenrolledforlessthanninemonths,theEFC
issimplyproratedbydividingitbynineandthenmultiplyingtheresultbythenumberofmonthsthestudentwillbe
enrolled.Foranenrollmentofmorethanninemonths,however,theEFCremainsatthenine-monthamount.
Reminder
Toviewand/orworkthroughtheEFCworksheetsandtablesinordertomanuallycalculatea2022-2023EFCfor
anyoftheformulas(A,B,orC),pleaseremembertoreviewthe2022-2023EFCFormulaGuide(locatedinFSA’s
KnowledgeCenterintheLibrarysectionunderResourceType>Handbooks,Manuals,orGuides>2022-2023
ExpectedFamilyContribution(EFC)FormulaGuide).
Chapter4
Verification,Updates,andCorrections
Becausestudentssometimesmakeerrorsontheirapplication,thereisaprocessforverifyingapplicationsandmaking
corrections.TheCentralProcessingSystem(CPS)selectswhichapplicationsaretobeverified,butyoualsohavethe
authoritytoverifyadditionalstudents.
YoumustverifyapplicationsselectedbytheCPSofstudentswhowillreceiveorhavereceivedsubsidizedstudent
financialassistance,asdefinedbelow.Verificationisnotrequiredforstudentswhoareonlyeligibleforunsubsidized
studentfinancialassistance(however,seeVerificationexclusionslaterinthischapterforanimportantcaveat).While
graduatestudentsareineligibleformosttypesofsubsidizedTitleIVaid,theyareeligibleforFederalWorkStudyand
wouldneedtocompleteverificationiftheyareselectedandreceivethataid.Studentswhoareeligibleforbothsubsidized
andunsubsidizedTitleIVaidmaynotavoidverificationbyacceptingonlyunsubsidizedaid;theymustcomplete
verificationtoreceiveanyTitleIVaid(seethe“Disbursingunsubsidizedaid”sectionlaterinthischapterformore
information).
RequiredPoliciesandProcedures
Yourschoolmusthavewrittenpoliciesabout
thetimeperiodinwhichstudentsmustsubmitverificationdocumentation,
theconsequencesforfailingtosubmitthosedocumentsintime,
themethodyouusetonotifystudentsiftheirexpectedfamilycontribution(EFC)andTitleIVaidamountschange,
theproceduresyouorstudentsfollowtocorrectFAFSAdata,and
theprocedureyoufollowtoreferastudenttotheOfficeofInspectorGeneral(OIG)(seeChapter5).
Yourschoolmustprovide,inatimelymanner,studentsselectedforverificationaclearexplanationoftheirrole,including
whatdocumentstosubmit,deadlinestheymustmeet,andtheconsequencesoffailingtomeetthem.
TheFSAAssessments,locatedintheKnowledgeCenterunderthe“ResourceType”subpartoftheLibrarysection,
includesvariousverificationactivitiesundertheverificationassessmentthatyoucanusetohelpyouevaluateyour
verificationprocess.Inaddition,theDepartmenthasalistofquestionsandanswersaboutverificationlocatedwithinour
ProgramIntegrityQ&Awebsite.
Subsidizedstudentfinancialassistanceprograms
TitleIVprogramsforwhicheligibilityisdeterminedbytheEFC:thePellGrant,FederalSupplementalEducational
OpportunityGrant(FSEOG),FederalWork-Study(FWS),andDirectSubsidizedLoanprograms.
Unsubsidizedstudentfinancialassistanceprograms
TitleIVprogramsforwhicheligibilityisnotbasedontheEFC:theTeacherEducationAssistanceforCollegeand
HigherEducation(TEACH)Grant,DirectUnsubsidizedLoan,andDirectPLUSLoanprograms.
TheIraqandAfghanistanServiceGrantisanon-need-basedgrantandisnotsubjecttoverification.
Verificationselectionandprofessionaljudgement(PJ)
Youmustcompleteverificationforaselectedstudentbeforeyouexerciseprofessionaljudgment(PJ)toadjustanyvalues
usedtocalculatetheEFC.ButaPJadjustmentdoesnotrequireyoutoverifyanapplicationnotselected.
OncetheDepartmentselectsaFAFSAapplicationforverification,everysubsequenttransactionforthatawardyear,even
oneresultingfromPJ,willindicatethatthestudentisselectedforverification.
IfaFAFSAthatisnotselectedforverificationislatercorrected,thatcanresultintheapplicationbeingselected.However,
whenPJisused(andcodedcorrectly)toadjustanapplicationthatisnotselectedforverification,theCPSpreventsthe
subsequenttransactionfrombeingselectedforverification.
ApplicationsandInformationtobeVerified
TheDepartment’slong-termgoalisforacustomizedapproachtoverification.Amenuofpotentialverificationitemsfor
eachawardyearwillbepublishedintheFederalRegister,andtheitemstoverifyforagivenapplicationwillbeselected
fromthatmenuandindicatedontheSAR/ISIR.Thoseoutputdocumentswillcontinuetoincludeonlyoneverificationflag
toshowstudentswhowereselected,andtheywillneedtoverifyalltheFAFSAitemsbelowthatapplytothem.
SeetheSeptember1,2021,FederalRegisterfortheverificationitemsfor2022–2023.Pleasenotethatallofthe
verificationitemsarethesameaslastyear’sitemsexcepthighschoolcompletionstatushasbeenremoved:
Adjustedgrossincome(AGI)
U.S.incometaxpaid
Educationcredits
UntaxedportionsofIRAdistributions
Untaxedportionsofpensions
IRAdeductionsandpayments
Tax-exemptinterestincome
Incomeearnedfromwork
Householdsize
Numberincollege
Identity/statementofeducationalpurpose
Theverificationflagwillhaveavalueof“Y,”andnexttotheEFCwillbeanasteriskreferringtoacommentinthestudent
sectionoftheSARthattellsapplicantstheywillbeaskedbytheirschoolstoprovidedocumentation.Averification
trackingflagwillbesetontheapplicant’sInstitutionalStudentInformationRecord(ISIR)toindicateplacementinoneof
the2022–2023verificationtrackinggroups.
Policiesandprocedures
34CFR668.53
VerificationandPJ
34CFR668.53(c)
School-selectedverification
Insomecasesyou,nottheCPS,willselectastudentforverification.Youmustverifyanyinformationyouhavereasonto
believeisincorrectonanapplication.Also,youmayatyourdiscretionrequireastudenttoverifyanyFAFSAinformation
andprovidereasonabledocumentationaccordingtoconsistentlyappliedschoolpolicies.Ineithercaseyoumay,butare
notrequiredto,includeanyoftheCPSverificationitemsnotalreadyincluded.Whetheryoudothatornot,studentswith
theseapplicationsareconsideredselectedforverificationand,aswithCPS-selectedapplications,allotherverification
requirements,suchasdeadlines,allowabletolerances,andinterimdisbursementrules,apply.
WhenschoolschoosetoverifyanitemotherthanthosetheDepartmentselects,theymaydelaydisbursingTitleIVaid
untilverificationiscompletediftheschool-selecteditemcanaffectthestudent’sTitleIVeligibility,suchasanitemabout
dependencystatus.ButschoolscannotdelaydisbursingTitleIVfundswhentheitemhasnobearingonTitleIVaid,for
example,iftheschoolisverifyinghomeequitytodeterminestudenteligibilityforschoolorstateaid.
Verificationtrackinggroups
StudentswhoareselectedforverificationwillbeplacedinoneofthefollowinggroupstodeterminewhichFAFSA
informationmustbeverified.
V1—StandardVerificationGroup.Studentsinthisgroupmustverifythefollowingiftheyaretaxfilers:
Adjustedgrossincome
U.S.incometaxpaid
UntaxedportionsofIRAdistributions
Untaxedportionsofpensions
IRAdeductionsandpayments
Tax-exemptinterestincome
Educationcredits
Householdsize
Numberincollege
Studentswhoarenottaxfilersmustverifythefollowing:
Incomeearnedfromwork
Householdsize
Numberincollege
V4—CustomVerificationGroup.Studentsmustverifyidentity/statementofeducationalpurpose(SEP).
V5—AggregateVerificationGroup.Studentsmustverifyidentity/SEPinadditiontotheitemsintheStandard
VerificationGroup(V1).
GroupsV2,V3,andV6arereservedforfutureusebytheDepartment.
Formoreinformationrelatedtotheremovalofthehighschoolcompletionstatusstartingin2022–2023,pleaseseeGEN-
21-06.
Changingtrackinggroups
AstudentmaymovefromVerificationTrackingGroupV1orV4togroupV5basedoncorrectionsmadetohisorherCPS
Verificationitems
34CFR668.56
recordoronotherinformationavailabletotheDepartment.Ifverificationwasalreadycompletedforthepreviousgroup,
thestudentisonlyrequiredtoverifytheV5informationthatwasnotalreadyverified.Ifverificationwasnotcompletedfor
thepreviousgroup,thestudentneedstoverifyalloftheV5information.
NodisbursementsofTitleIVaidmaybemadeuntiltheV5verificationissatisfactorilycompleted.Ifthestudentdoesn’t
completeverification,theschoolisnotliableforanyTitleIVaiditdisbursedpriortoreceivingthegroupV5ISIR.The
studentisliableforthefullamountbecausewithoutverificationthereisnoevidenceheorshewaseligibleforthataid.
SeetheOctober31,2016,announcementformoreinformationaboutdisbursementsandpotentialreturnoffundswhen
studentsareselectedforverification.
ReportingresultsforgroupsV4andV5
Youmustreporttheverificationresultsofidentityforanystudentforwhomyou(1)receiveanISIRwithtrackingflagV4
orV5—asselectedbytheCPS,notyourschool—and(2)requestverificationdocumentation.Youreportthisinformation
ontheFAAAccesstoCPSOnlinewebsite:selecttheIdentityVerificationResultsoptionfromthemainmenu,enteryour
schoolidentifiers,theawardyear,andthestudentidentifiers.Forthe2022–2023awardyear,youwillthenenteroneof
thefollowingnumericcodesthatmostapplies:
1-Verificationcompletedinperson,noissuesfound
2-Verificationcompletedremotely,noissuesfound
3-Verificationattempted,issuesfoundwithidentity.(YoudidnotreceiveacceptabledocumentationfortheSEPor
identity.)
4-Nolongervalid–donotusefor2022–2023andbeyond.(Valueusedpriorto2022–2023awardyeartoidentify
whenhighschoolcompletionstatusissuesexistedbuttherewerenoissueswithidentity.)
5-Noresponsefromapplicantorunabletolocate
6-Nolongervalid–donotusefor2022–2023andbeyond.(Valueusedpriorto2022–2023awardyeartoidentify
whenbothhighschoolcompletionstatusandidentityissuesexisted.)
Formoreinformationregardingtheimplementationoftheremovalofhighschoolcompletionstatusfromthe2022–2023
verificationprocess,pleaseseetheSeptember1,2021electronicannouncement.
Youarerequiredtoreportresultsnomorethan60daysfollowingyourfirstrequesttothestudentfordocumentationof
identity.Inaccurateanduntimelyreportingmaysubjectyourschooltofindingsasaresultofyourannualcompliance
auditoraprogramreview.Ifthereisachangeinaresultyouhavealreadysubmitted,youcansubmitthenewcodeusing
theaboveprocess,andmustmakethatchangewithin30daysofbecomingawarethatachangeoccurred.Themost
recentsubmissionwillsupplantpriorawardyearsubmissions.BecausetheFAAAccesswebsitedoesnotstorealistof
theseverificationresultsforyoutoretrieve,werecommendyouprintandkeeptheconfirmationpageforyourrecords.
Insteadofusingthisindividualmethod,youcansubmitverificationresultsbyuploadingaflatfilewiththedataforupto
2,000students.Eachrecordmustcontainonlythenine-digitSSN,thetwo-characternameID,andtheappropriate
numericresultcodefromabove.Eachlineofdatamustcontainonlyonerecord.Donotusehyphens,emptylines,or
spaces(unlessthestudentdoesnothavealastname,inwhichcaseentertwospaces).Thisisanexampleoftworecords
reportedviatheflatfile:
111223333BE1
222334444OL5
Verificationexclusions
Therearetimeswhenyoudon’tneedtoverifyastudent’sapplication.Exceptinthecaseofthestudent’sdeath,
however—orpost-enrollmentsituationswherethestudentalsodoesnotintendtoreenroll—noneofthe
exemptionsexcuseyoufromtherequirementtoresolveconflictinginformation(seeChapter5).Youshould
documentthebasisforanexclusion.Otherinformationnotexcludedmuststillbeverifiedaccordingtoallother
requirements.
Youdon’thavetoverifyFAFSAinformationofastudentinthefollowingsituations:
Deathofthestudent.Youdon’thavetocontinueverificationifyoumadeaninterimdisbursementandthestudent
diedbeforeverificationwascompleted.Youcannotmakeanyadditionaldisbursements,exceptforFWSfunds
alreadyearned,toanyofthestudent’sbeneficiaries.YoucannotoriginateordisbursehisorherDirectSubsidized
LoanorconsideranyinterimdisbursementyoumadeofPellorFSEOGfundsorprovisionalFWSemploymenttobean
overpayment.
Notanaidrecipient.Thestudentwon’treceiveTitleIVaidforreasonsotherthanafailuretocompleteverification.
Thisincludesbeingineligibleforthataidandwithdrawingwithoutreceivingit.
Theapplicantiseligibletoreceiveonlyunsubsidizedstudentfinancialassistance.However,studentsselectedforV4
orV5verificationshouldcompleteitinaccordwiththeanswertoDOC-Q18ontheverificationQandApage.
Applicantverifiedbyanotherschool.Thestudentcompletedverificationforthecurrentawardyearatanotherschool
beforetransferring.HisorherFAFSAdatamustbethesameasitwasatthepreviousschool,andyoumustgeta
letterfromthatschoolstatingthatitverifiedthestudent'sapplicationandprovidingthetransactionnumberofthe
pertinentvalidISIR.
Postenrollment.Thestudentwasselectedforverificationafterceasingtobeenrolledatyourschool,heorshedoes
notintendtoreenrollfortheawardyear,andnofurther(includinglate)disbursementswillbemade.
Unlessyouhavereasontobelieveitisinaccurate,youdon’thavetoverifythereportedFAFSAinformationoftheparents
ofadependentstudentifanyofthefollowingapply(includingincaseswherethereisonlyoneparent):
Bothoftheparentsarementallyincapacitated.
Bothparentsorthecustodialparenthasdied.
TheyareresidinginacountryotherthantheUnitedStatesandcan’tbecontactedbynormalmeans.
Theycan’tbelocatedbecausethestudentdoesnothaveandcannotgettheircontactinformation.
Unlessyouhavereasontobelieveitisinaccurate,youdon’thavetoverifythereportedFAFSAinformationofthespouse
ofanindependentstudentifanyofthefollowingapply:
Thespousehasdied.
Thespouseismentallyincapacitated.
ThespouseisresidinginacountryotherthantheUnitedStatesandcan’tbecontactedbynormalmeans.
Thespousecan’tbelocatedbecausethestudentdoesnothaveandcannotgethisorhercontactinformation.
Example:UrsulaisattendingLemCommunityCollege,andherapplicationisselectedforverification.Sheprovided
herhusband’sinformationontheapplicationbutnowexplainsthatherecentlymovedoutandshecan’tlocatehim.
ShealsogivesLemdocumentstoshowthatshe’striedtolocateherhusband.LemdeterminesthatUrsuladoesn’t
needtoverifyherhusband’staxandincomeinformation.Ofcourse,shestillneedstoverifyherowninformation.
Verificationfollowingdisasters
TheDearColleagueLetter(DCL)GEN-17-08givesgeneralguidanceforawardingaidinfederallydeclareddisasters.It
statesthattheSecretarywillnotenforcetheverificationrequirementsduringtheawardyearforapplicantswhoserecords
werelostordestroyedbecauseofadisasteraslongastheschoolhastriedtopreserveandreconstructanyrecords.The
schoolmustdocumentwhenitdoesnotperformverificationforthisreasonandusestatuscode“S”whenreportingthe
disbursementofPellGrantstoaffectedstudents.Also,therequirementfordependentstudentstosubmitastatement
signedbyaparentregardinghouseholdsizeandnumberincollegeiswaivediftheparentscannotprovidethesignature
duetothedisaster.Theschoolmustnotewhynoparentwasabletoprovidethestatement.
Schoolsthatexperiencealocaldisaster(ratherthanafederallydeclaredone)thataffectsTitleIVadministrationshould
Verificationexclusions
34CFR668.54(b)
consulttheirregionalschoolparticipationdivision.
RefertotheresourcesforhighereducationinstitutionsontheDepartment’sCoronaviruswebpageforguidancepertaining
totheon-goingCOVID-19nationalemergency,includingvariousverificationflexibilities.
HigherEducationReliefOpportunitiesforStudents(HEROES)Act
ThereliefdescribedinGEN-17-08appliesspecificallytodisastersandisseparatefromreliefundertheHEROESAct,which
allowstheSecretarytomodifyorwaivesomestatutoryandregulatoryrequirementsforthosewho
areservingonactivedutyorperformingqualifyingNationalGuarddutyduringawar,othermilitaryoperation,or
nationalemergency;
resideorareemployedinanareadeclaredadisasterbyafederal,state,orlocalofficialinconnectionwithanational
emergency;or
sufferedeconomichardshipasadirectresultofawar,othermilitaryoperation,ornationalemergency,as
determinedbytheSecretary.
Readtheelectronicannouncement,andtheFederalRegisternoticeforthewaiversandmodificationsduetoexpireon
September30,2022.
Documentation
TheSeptember1,2021,FederalRegistergivesthedocumentationrequiredforverifying2022–2023applicationdata,
whichdependsontheitemverified,asexplainedinthissection.TheDepartmentencouragesstudentsandparentstouse
theIRSDataRetrievalTool(DRT)toimportdatafromtheirtaxreturnandnotchangeit.Itisthefastest,easiest,andmost
securemethodofmeetingverificationrequirements.Inaddition,theDepartmenthasdevelopedsuggestedtextthat,if
youchoose,youcanusetocreateaverificationdocumentandtoverifynon-taxitems,suchashouseholdsizeand
numberincollege.Toreviewthesuggestedtextfor2022-2023,pleaseseeGEN-21-06(postedonSeptember1,2021).
Ifyouuseaverificationdocument,besurethatitissigned,thatallrequiredsectionsarecompleted,andthatany
relevanttaxoralternativedocumentsareattached.Copiesareacceptable,andunlessspecificallynotedinthischapter,a
signatureonacopyisasvalidasanoriginalsignature(i.e.,ahandwrittenor“wet”signature).Ifacopyofthetaxreturn
isused,thefiler(oratleastoneofthefilersofajointreturn)mustsignitorthetaxpreparermustprovidehisorher
nameandSSN,EIN,orPTIN.
Thefollowingchartshowsthetaxformlinenumbersforthemostcommonlyreporteditems.Thischartisareferenceonly;
itisnotalistofalltheitemstheschoolmustcheckonataxreturn.
Lineitemsfromthe20201040taxreturn
AGI 11
Incometaxpaid 22minusSchedule2line2
DeductibleIRA/SEP Schedule1line15plus19
Tax-exemptinterestincome 2a
UntaxedportionsofIRAdistributionsandpensions(excludingrollovers) (4a+5a)minus(4b+5b)
Educationcredits Schedule3line3
DocumentingAGI,taxespaid,andothertaxdatawiththeDRT
Asalreadynoted,theimportationofIRStaxdataviatheDRTisthebestwaytodocumentthatinformation.Studentsand
parentsdothiseitherwheninitiallyfillingouttheFAFSAorlaterasacorrection.Fortheretrieveddatatobeacceptable
documentationoftaxdata,itisnecessarythatneitherstudentsnorparentschangethedataafteritistransferredfrom
theIRS—ifthedatawaschangedorifyouhavereasontobelievethedatatransferredisincorrect,thestudentwillneedto
provideataxreturntranscriptorasignedcopyofthetaxreturn.TheIRSrequestfield(s)ontheISIRwillhaveavalueof
“02”whenthedataisunchanged.ThefollowingitemsareimportedfromIRSform1040toastudent’sFAFSAformviathe
DRT:
Typeoftaxreturnfiled
Adjustedgrossincome
Taxespaid
Educationcredits
IRAdeductions
Tax-exemptinterestincome
UntaxedportionsofIRAdistributions
Untaxedportionsofpensions
Incomeearnedfromwork
Taxreturnfilingstatus
Inthefollowingsituations,theIRSDRTisnotavailableintheFAFSAonlineorthemyStudentAidmobileapp(allapplyto
bothstudentsandparentsunlessotherwisenoted):
ThepersondidnotindicateontheFAFSAformthatthetaxreturnhasbeencompleted.
Thepersonfiledanon-U.S.taxreturn.
ThemarriagedateisJanuary2021orlater.
ThepersonansweredmarriedontheFAFSAformandfiledthetaxreturneitherasheadofhouseholdormarriedbut
filingaseparatereturn.
ThefirstthreedigitsoftheSSNare666.
NeithermarriedparententeredavalidSSN.
AnunmarriedparentorbothmarriedparentsenteredallzeroesfortheSSN.
AGIandincometaxdocumentation
34CFR668.57(a)
UsingajointreturntofigureindividualAGIandtaxespaid
Ifthefilerofajointreturnhasbecomewidowed,divorced,orseparatedsincefilingthereturn,itmaybe
necessarytodeterminetheindividual’sincomeandtaxespaidusingthejointreturnandW-2forms.IfaW-2is
notavailable(thefilerisself-employedforexample)orifaduplicatecopyfromtheemployerwhoissuedthe
originalW-2isnotavailableinatimelymanner,theschoolmaypermitthefilertoprovideasignedstatement
thatcertifiesthebaseyearAGIandU.S.taxespaid.Ifhehasdivorcedandmarriedsomeonenew(see“Parent
remarriageafterapplying”sectiondiscussedlaterinthischapterifthisoccurredaftercompletionofthe
application),thenthenewspouse’sincomeandassetswouldalsoneedtobeincluded.
Addtheincomeamountsfromtheindividual’sW-2formstoanyotherincomethatcanbeextractedfromthejoint
Usingthetaxtranscript
IfstudentscannotorwillnotusetheDRT,eitheratinitialFAFSAfilingorthroughonlinecorrections,anotherwayto
documentAGI,taxespaid,anduntaxedincomeisbyprovidinganIRStaxreturntranscriptforthestudentandspouseor
parents,asapplicable.Beforerequestingatranscript,theyshouldallowenoughtimetopassafterfilingthereturn;it
takestheIRS2to4weekstoprocessreturnsfiledelectronicallyand6to8weeksformailedreturns.Taxtranscripts
submittedtoyourschoolforverificationdonotneedtobesignedbythetaxfiler(butitisencouraged)unlessyouhave
reasontodoubttheirauthenticity.
Thereareafewwaystorequestataxreturntranscript:onlineatwww.irs.gov,bycalling1-800-908-9946,orbymailing
thepaperForm4506TEZ,whichcanbeprintedoutfromtheIRSwebsite.Toorderafiscalyeartaxtranscriptfor
verification,Form4506-TmustbeusedratherthanForm4506T-EZ.Phonerequestsareviaanautomatedprocessinstead
return.Anyinterestorbusinessincomeearnedonjointaccountsorinvestmentsshouldbeassessedat50%.The
sameprocedureshouldbeusedtodividebusinessorfarmlosses.Also,iftheAGIlistedonthejointreturnwas
adjusted,youshouldreducetheindividual’sAGIbytheportionoftheadjustmentthatappliessolelytohimor
her.AnAGIfigurecanbecalculatedfortheindividualfiler.Asignedstatementfromthefilercertifyingthatthe
datafromthejointreturnwereaccuratelyassessedissufficientdocumentationforthismethod.
Useoneofthefollowingmethodstofiguretheindividual’staxespaid:
Taxtable(preferredmethod).UsingtheIRSTaxTableorTaxRateSchedulefortheappropriateyear,
calculatetheamountoftaxthatwouldhavebeenpaidifaseparatereturnhadbeenfiled.Usethe
deductionstheindividualcouldhaveclaimedifheorshehadfiledaseparatereturn.(Ifitemizeddeductions
weretaken,countonlytheportionofthosedeductionsthatcouldhavebeenclaimedonaseparatetax
return.)
Proportionaldistribution.DeterminewhatpercentageofthejointAGIwasattributabletotheindividual,
andthenassessthejointtaxespaidbythatsamepercentage.
Example
CalculatingtheindividualAGIfromajointreturn
Eddy’sapplicationisselectedforverification.Heandhiswifefiledajointreturnfor2020andhavesince
divorced.TheAGIonEddy’sFAFSAmatchestheAGIof$56,500onthe2020taxreturn,whichmeansit’swrong
becauseitincludeshiswife’sincome.
Eddy’sW-2showsthathisincomefor2020was$25,900,andthetaxreturnshows$400ininterest.Becauseit
wasinterestonajointsavingsaccount,theaidadministratoradds$200ofittoEddy’sincomeandsubmits
$26,100asthecorrectedincomeviaFAAAccess.
Calculatingtheindividualtaxfromajointreturn
TheaidadministratordeterminesthatEddy’spartofthe$56,500AGIheandhiswifereportedis$26,100.Ifhe
hadfiledhistaxreturnassingle,hisstandarddeductionwouldhavebeen$12,400(insteadof$24,800for
marriedfilers).Eddy’sincomeof$26,100minus$12,400forthestandarddeductionresultsin$13,700intaxable
income.
TheaidadministratorusesthetaxtabletodeterminehowmuchtaxEddywouldhavepaidonthisamount,taking
intoaccountanyapplicablecreditsreportedontheoriginalreturn.Withataxableincomeof$13,700,thetax
amountfromthetaxscheduleis$1,450.
Tousetheproportionaldistributionmethodinstead,theaidadministratorfiguresoutwhatpercentageofthejoint
AGIEddy’sincomerepresents.Thepercentageis46%(26,100÷56,500is.4619).Theaidadministratorthen
multipliestheincometaxpaidasreportedonthetaxreturn($3,412forthisexample)bythispercentage.Eddy’s
incometaxbyusingthismethodis$1,570(.46x$3,412).
ofanIRSrepresentative.Withonlinerequests,taxfilerscangetanelectronictranscript(seebelow)ortheycanhavethe
IRSmailthemapapertranscript;nononlinerequestsyieldamailedtranscript.Schoolscanacceptandcopytranscripts
originallyobtainedfromtheIRS.
TheGetTranscriptOnlinefeatureallowsuserstogetthetranscriptinrealtimeasaportabledocumentformat(PDF)file,
whichtheycansubmitelectronicallytoaschoolorprintandsubmitasahardcopy.TousetheGetTranscriptOnlinetool,
usersmusthave(1)accesstoavalidemailaddress,(2)atext-enabledmobilephoneintheirname,and(3)specific
financialaccountnumbers,suchasacreditcardnumberoranaccountnumberforahomemortgageorautoloan.The
processwillnotcausechargestothecardortheaccount.SeetheIRS.govwebsiteformoreinformationontheGet
TranscriptService.
TheIRS’sIncomeVerificationExpressService(IVES)allowsathirdpartytoreceiveataxfiler’stranscript.TheIVES
participantsubmitsa4506-Tor4506T-EZform,signedbythetaxfiler,andreceivesthetranscriptfromtheIRS,which
chargesasmallfeefortheservice.SchoolsmayapplytoparticipateinIVES.Theymayalsouseatranscriptfromanother
IVESparticipant(whichisnotconsideredathird-partyservicerinthiscase)forverificationaslongastheyhavenoreason
todoubtitsauthenticity.Schoolsmaynot,however,passonthechargeforusingthisservicetothestudent.
Tocombatidentitytheft,theIRSmasksmuchofthepersonallyidentifiableinformationonthetranscript.Forexample,
onlythelastfourdigitsofanySSNoraccountortelephonenumberaredisplayed.Theoptiononforms4506-Tand4506T-
EZtodesignateathird-partyrecipientofthetranscripthasbeeneliminated.Asnotedabove,schoolscanelectto
participateinIVESasawayofreceivingtranscriptsdirectlyfromtheIRS.Taxpayerswillbeabletohavea“customerfile
number”oftheirchoosingappearonarequestedtranscript,whichwillfacilitateidentification.Thiscanbesomethinglike
astudent’scollegeIDnumberorsomeothernumber(butnotanSSN).SeetheOctober4,2018,announcementandthe
IRSnewsreleaseformore.
EachyeartheDepartmentprovidesataxreturntranscriptmatrixtoassistschoolswithreviewingtaxdata.Specifically,
thetaxreturntranscriptmatrixconsistsofachartoftheFAFSAandISIRtaxitemsusedforverificationandtheir
correspondinglineitemsfromthevariousIRStaxreturnsandthetaxtranscriptfortheappropriateawardyear.Atthe
timethe2022–2023ApplicationandVerificationGuidewaspublished,the2022–2023taxreturntranscriptmatrixhadnot
beenpostedtoFSA’sKnowledgeCenter.PleasestaytunedtotheelectronicannouncementsectionintheKnowledge
Centerforthelatestinformation.
Thetaxreturntranscriptmayshowapercomputeramountforsometaxdatathatisdifferentfromwhatthefiler
reportedtotheIRS.Thepercomputeramountshouldbeusedbecauseitcorrectsmathematicalerrorsandismore
accuratethanwhatappearsontheoriginalreturnorwastransferredviatheDRT.Thisguidancestillholds,butbecause
theDRTreportspercomputervaluesforAGI,incometaxpaid,andeducationtaxcredits,thereshouldnotbemany
discrepanciesbetweenDRTdataandthetranscript.Also,ifatranscriptindicates“recomputed<taxreturnitem>per
computer,”thatamountmaybeignoredforverification.
SchoolsmayacceptforverificationanyIRStaxtranscriptthatincludesallofthenecessaryinformation:adjustedgross
income,U.S.incometaxpaid,untaxedIRAdistributions,untaxedpensions,educationcredits,IRAdeductionsandtax-
exemptinterest.BecausetherecordofaccountandtheReturnTranscriptforTaxpayer(RTFTP)includealloftheabove
information,eithermaybeusedforverification.TheInformationReturnsProcessingTranscriptRequest—Wages(IRPTR-
W)onlyprovideswageinformationandthereforecanonlybeusedinlieuofaW-2form.SeetheFebruary23,2017,
announcementforinformationaboutthedocumentsobtainedfromtheIRSthatareusedforverification:thetaxreturn
transcript,therecordofaccount,theaccounttranscript,andthewageandincometranscript.Theannouncementalso
explainsForm13873,whichstudentsorparentsmightreceivewhenrequestingdocumentsfromtheIRS.
Rolloversandverification
Qualifiedrolloversfromoneretirementaccounttoanotherarenottaxable,andtheyshouldnotbecountedasuntaxed
income(asindicatedinChapter2).SinceneithertheDRTnorataxtranscriptidentifiesrollovers,youmustget
documentationfromthetaxfiler.Thiscouldbeasignedstatementwiththerolloveramountoranotationbythefileron
thetaxtranscriptthatincludestheword“rollover”besideanyapplicableitem,similartotheinstructiontheIRSgivesfor
Form1040.Theannotationmustbesignedanddatedbythefiler.ForthosewhousedtheDRT,asignedconfirmationthat
theIRAorpensiondistributionincludedarolloverwouldsuffice;ataxtranscriptwouldonlybeneededifotherIRStax
informationwaschanged.SeeVI-Q4ontheQandApage.
Usingthetaxreturn
AlthoughtheDRTandtaxtranscriptarepreferableforcompletingverification,studentscanalsosubmitacopyofthetax
returnandanyapplicableschedules.However,seetheguidanceundervictimsofidentitytheftlaterinthisvolumeforan
importantcaveat.Thetaxreturnwilllikelyhavebeenfiledelectronicallywithoneofavarietyofmethods.Theseinclude
do-it-yourselfmethodsaswellascompletionbyataxpreparer.Eachmethodshouldpermitprintingofapapercopyofthe
return,thoughthee-fileformatmightnotcontaineverylineitem,showinginsteadonlythedatathetaxfilerprovided.For
example,ifItem2b,“Taxableinterest,”doesnotappearonsuchareturn,thatmeansnotaxableinterestincomewas
reported.
Youcanacceptapaperorelectroniccopyofthereturnaslongasitcontainsasignature.Acceptableexampleswould
include,butarenotlimitedto:
1. Asignedpaperreturnthatthestudenteithermailedorbroughttotheschool.
2. Asignedpaperreturnthatthestudentfaxedorscannedandemailed.
3. Anelectroniccopythatthestudentsignedwithastylusorfinger.
4. Anelectroniccopythatweconsidersignedbecauseithasanimageofthestudent’ssignatureattached.
However,asignatureonForm8879,theIRSe-fileSignatureAuthorization,isnotanacceptablesubstituteforasignature
onthetaxreturn.
Forpersonswhohaveataxprofessionalpreparetheirreturn,insteadofacopyofthereturnwiththefiler’ssignature,you
mayacceptonethathasthenameandPTINofthepreparerorhashisorherSSNorEINandhasbeensigned,stamped,
typed,orprintedwithhisorhernameandaddress.NotethattheIRSrequirespaidpreparerstohaveaPTIN.
Ifapersondidnotretainacopyofhisorher2020taxinformationanditcannotbelocatedbytheIRSortherelevant
governmentagency,heorshemustsubmitasignedstatementindicatingthattheydidnotkeepacopyoftheirtax
informationaswellasdocumentationfromthetaxingauthorityindicatingthatthatinformationcannotbelocated.Also,
youmustacceptforanIRSfilereitheracopyofFormW–2foreachsourceofemploymentincomereceivedfor2020or,if
heorsheisself-employed,asignedstatementcertifyingtheamountofAGIandtaxespaid.Forsomeonewhofiledan
incometaxreturnwithagovernmentofaU.S.territoryorcommonwealthoraforeigncentralgovernment,acceptacopy
ofawageandtaxstatementorasignedstatementcertifyingtheamountofAGIandtaxespaidfor2020.
IfaW-2isnotavailable
IfanindividualwhoisrequiredtosubmitanIRSFormW-2didnotsaveacopy,heorsheshouldrequestareplacementW-
2fromtheemployerwhoissuedtheoriginal.AW-2transcriptfromtheIRSisalsoacceptablethoughitgenerallyisnot
availableuntiltheyearaftertheW-2informationisfiledwiththeIRS(e.g.,2022for2020informationfiledin2021).Ifhe
orsheisunabletoobtainoneinatimelymanner,youmaypermithimorhertoprovideasignedstatementthatincludes
theamountofincomeearnedfromwork,thesourceofthatincome,andthereasonwhytheW-2isnotavailableina
timelymanner.
Immigrantsandtaxfil ing
Immigrantsarenotexemptfromtaxfiling.TheIRSismoreconcernedwhetherapersonisaresidentornonresident—
ratherthanlegalorillegal—alien.AnalienisanyonewhoisnotaU.S.citizenornational.Aresidentalienisonewho
eitherisapermanentresidentorhasresidedintheU.S.foraspecificminimumamountoftime(hasmetthesubstantial
presencetest).Allothersarenonresidentaliens.Residentaliens’incomeisgenerallysubjecttotaxinthesamemanner
asU.S.citizens’,andtheyfileForm1040.NonresidentalienswhoarerequiredtofileareturnsubmitForm1040NRor
1040NR-EZ;bothformsareacceptabledocumentationforverification.
ImmigrantswhodonothaveanSSNandareunabletogetonecanapplywiththeIRSforanindividualtaxpayer
identificationnumber(ITIN).TheITINisonlyfortaxpurposes.Itdoesnotauthorizeapersontowork,endorsehisorher
legalstatus,orentitlehimorhertotheearnedincomecreditorSocialSecuritybenefits.Itisnottobeusedasan
identifierinplaceoftheSSNontheFAFSAform.
SeetheIRS’sPublication519,U.S.TaxGuideforAliensatwww.irs.govformoreinformation.
Specialsituations
Filingextensions.BecausetheFAFSAformusesprior-prioryeartaxdata,evenindividualswhohaveanautomatic
six-monthextensionbytheIRSshouldhavecompletedtheirtaxreturnbythetimeofverification.Therefore,they
mustverifyincomeandtaxinformationeitherbyusingtheIRSDataRetrievalToolorbysubmittingtotheinstitution
anIRSTaxReturnTranscript.Onlystudents(andspousesifapplicable)andparentsgrantedanextensionbeyondsix
monthsmaysubmitthefollowingforverification:
acopyoftheIRS’sapprovalofanextensionbeyondtheautomaticsix-monthextensionfortaxyear2020;
verificationofnon-filing(seenon-taxfilersformoreinformation)fromtheIRSdatedonorafterOctober1,2021;
copiesofalltheirW-2forms(orequivalent)for2020employmentincome;and
ifself-employed,asignedstatementwiththeamountsoftheirAGIandU.S.incometaxpaid2020.
YoumayrequirethosewithafilingextensiontousetheDRTorsubmittoyourschoolataxtranscriptorreturnafter
ithasbeenfiled.Ifyoudothat,youmustreverifytheincomeinformation.IfthestudentdoesnotusetheDRTor
submitataxtranscriptorreturn,seetheguidancedescribedunderthe“DeadlinesandFailuretoSubmit
Documentation”sectionlaterinthischapteronfailingtocompleteverification.SeeDOC-Q16ontheQandApage.
ForapersoncalledupforactivedutyorqualifyingNationalGuarddutyduringawar,anothermilitaryoperation,ora
nationalemergency,aschoolmustacceptastatementfromthepersoncertifyingthatheorshehasnotfiledan
incometaxreturnorarequestforafilingextensionbecauseofthatservice.
Jointreturnfilerswhoarenolongermarried.Whenadependentstudent’sparentsfiledajointreturnandhave
separated,divorced,marriedsomeoneelse,orbeenwidowed,thestudentmustsubmitataxtranscriptorreturn
andacopyofeachW-2formfortheparentwhosetaxinformationisontheFAFSAform.Similarly,anindependent
studentmustsubmitataxtranscriptorreturnandacopyofhisorherW-2formsifheorshefiledajointreturnand
isseparated,divorced,orawidow.
Fornon-taxfilersyoumustreceiveaW-2formforeachsourceof2020employmentincomeandasigned
statementcertifyingthatthepersonhasnotfiledandisnotrequiredtofilea2020taxreturn.Youmustalsogeta
signedstatementgivingthesourcesandamountsoftheperson’sincomeearnedfromworknotfoundonW-2s.
Studentsmaysignonanonfilingspouse’sbehalf.
ForresidentsoftheFreelyAssociatedStates(theRepublicoftheMar-shallIslands,theRepublicofPalau,orthe
FederatedStatesofMicronesia),acopyofthewageandtaxstatementfromeachemployer(substituteforW-2s)and
asignedstatementidentifyinganyotheremploymentincomefortheyearnotidentifiedonthewageandtax
statementisacceptable.PersonsfromaU.S.territoryorcommon-wealthoraforeigncountrywhoarenotrequired
tofileataxreturncanprovideasignedstatementcertifyingtheirincome.
Youmustalsorequiretheperson(exceptdependentstudents)tosubmita“VerificationofNonfiling(VNF)Letter”
fromtheIRSdatedonorafterOctober1,2021,attestingthatheorshedidnotfilea2020IRStaxreturn.The
nonfilercangetthisbysendingIRSForm4506-Tandcheckingbox7.AlsoacceptableisotherIRSdocumentation
thatclearlystatestheIRSdoesnothaveataxrecordfortheyear,suchasareturntranscriptwiththemessage“no
recordofreturnfiled”or“notranscriptonfile.”Messagesthataren’tasclear,suchas“couldnotbeprocessed,”are
notacceptablealternatives.SeetheFebruary23,2017,electronicannouncementformoreinformation.
Personssubjecttoforeigntaxcodeswouldsubmitacomparabledocument;seeDOC-Q30ontheQandApage.Note
thatverificationofnonfilingonlyshowsthatapersondidnotfileataxreturn,notthatheorshewasnotrequiredto
fileone.SeeChapter5ifapersonwhosefinancialinformationwasontheFAFSAformdidnotfileataxreturnwhen
itappearsheorshewasrequiredto,andseeDOC-Q29ontheQandApageaboutnon-taxfilerswholackany
identifyingnumber(e.g.,SSN)neededtogetaconfirmationofnonfilingfromtheIRS.
Individualswhocan’tgetaVNFletterfromtheIRS(orothertaxauthority)mayinsteadsubmitasigned
statementaslongastheschoolhasnoreasontoquestionthestudent’sorfamily’sgood-faithefforttoacquirethe
letter.Form4506-Tstatesthatmostrequestsareprocessedwithin10businessdays,soatleastthatamountoftime
shouldelapsebeforeschoolsresorttoasignedstatement.Also,sinceaVNFmustbedatedonorafterOctober1,
2021,thestatementcannotbesignedandusedbeforethatdate.
ThestatementmustassertthatthepersonattemptedbutwasunabletogettheVNF.Fornon-taxfilers,the
statementmustalsoconfirmthattheyhavenotfiledandarenotrequiredtofileataxreturnfortherelevantyear,
anditmustlistthesourcesandamountsofincomeearnedfromwork.Forextensionfilers,thestatementmustalso
confirmthattheyhavenotyetfiledareturnforthetaxyearandmustlistthesourcesandamountsofincome;if
theyareself-employed,itmustincludetheamountofAGIandU.S.incometaxpaid.Notethatinbothcases—for
non-taxfilersandextensionfilers—theotherrequireddocumentation(e.g.,W-2forms)muststillbeprovided.
Forfilersofnon-IRStaxreturns,youmayacceptatranscriptfromagovernmentofaforeignnationoraU.S.
territoryorcommonwealththathasallofthefiler’sincomeandtaxdatatobeverified.Oryoumayacceptacopyof
thetaxreturn,whichmustbesignedbythefileroroneofthefilersofajointreturn.Usetheincomeandtaxdata
thatmostcloselycorrespondstowhatisontheIRStaxreturn,andconvertmonetaryamountsintoU.S.dollarsas
appropriate.Ifyouquestiontheaccuracyoftheinformationonthesignedcopyofthereturn,thefilermustprovide
youwithacopyofthetaxaccountinformationissuedbythetaxauthority.SeeDOC-Q28ontheQandApage.
Filersofamendedreturns.Studentsorparentswhofileanamendedreturn(IRSForm1040X)canusetheDRT
thoughtheISIRwillshowanIRSRequestFlagvalueof07(formoreinformationreviewthe“IRSDataRetrievalTool”
sectioninChapter2).Becausethetaxreturntranscriptdoesnotreflectchangestotheoriginalreturnbythefileror
theIRS,itisbyitselfnotsufficient.Sowhenanamendedreturnwasfiled,youmustsubmitanychangestonondollar
itemsandtosinglemonetaryitemsof$25ormore.Tocompleteverificationyouwillneedasignedcopyofthe
1040Xformthatwasfiledaswellaseither
IRSDRTinformationonanISIRrecordwithalltheinformationfromtheoriginaltaxreturnor
anyIRStranscript(whichdoesnothavetobesigned)thatincludesalltheincomeandtaxinformationrequired
tobeverifiedorasignedcopyofthetaxreturnandapplicableschedules.
Notethattheremayberarecaseswhenastudent,spouse,orparentdidnotfilea1040XwiththeIRSbuthadtheir
taxandincomeinformationamendedbytheIRS.Insuchacaseaschoolmayacceptoneoftheitemsmentioned
aboveplusdocumentationshowingtheIRS’schange(s).PleasenotethatiftheIRSamendsthereturn,theIRS
RequestFlagvaluewillalsobelabeled07.
VictimsofidentitytheftwhocannotgetareturntranscriptorusetheDRTsubmitaTaxReturnDataBaseView
(TRDBV)transcriptaswellasasignedanddatedstatementindicatingthattheywerevictimsoftax-relatedidentity
theftandthattheIRSisawareofit.TheydothisbycallingtheIRS’sIdentityProtectionSpecializedUnit(IPSU)at
800-908-4490.AftertheIPSUauthenticatesthetaxfiler’sidentity,heorshecanasktheIRStomailtheTRDBV
transcript,whichisanalternatepapertranscriptthatwilllookdifferentthanaregulartranscriptbutthatisofficial
andcanbeusedforverification.Unlessyoudoubtitsauthenticity,youdon’tneedtogetanIRSsignatureorstampor
anyothervalidation.SeeDCLGEN-14-05forasampleTRDBVtranscript.ThosewhocannotobtainaTRDBV
transcriptmayinsteadsubmitacopyofthetaxreturnoranotherofficialIRStranscriptorequivalentIRSdocumentif
itincludesalloftheincomeandtaxinformationrequiredtobeverified.Notethatfilersmustfirstattempttogeta
TRDBVbeforetheycanuseacopyofthetaxreturnoranothertranscript.Then,aslongastheschoolhasnoreason
todoubtthevictimofidentitytheftortheaccuracyofthedocument,itcanbeusedtocompleteverification.
StudentseligibleforanautomaticzeroEFC.Adependentstudentinthiscategorywhoisplacedin
VerificationTrackingGroupV1orV5onlyhastoverifythefollowinginformation:
1. hisorherparents’AGIiftheyweretaxfilers;
2. theirincomeearnedfromworkiftheywerenon-taxfilers(whomustalsofollowtheguidancegivenfornon-
filers);and
3. thestudentmustalsoverifyidentityandsignastatementofeducationalpurposeifingroupV5.
Anindependentstudentonlyhastoverify:
1. hisorherand,ifapplicable,hisorherspouse’sAGIiftheyweretaxfilers;
2. theirincomeearnedfromworkiftheywerenon-taxfilers(whomustalsofollowtheguidancegivenfornon-
filers);
3. identity(student-mustalsosignastatementofeducationalpurposeifingroupV5);and
4. thenumberofhouseholdmemberstodetermineifthestudenthasanydependentsotherthanaspouse.
AllstudentseligibleforanautozeroEFCwhoareplacedinVerificationTrackingGroupV4mustverifyidentityand
signastatementofeducationalpurpose.
Householdsize
Todocumentthehouseholdsize,thestudentneedstoprovideastatementsignedbyhimorherand,ifdependent,at
leastoneparentthatgivesthename,age,andrelationshiptothestudentofeachpersoninthehousehold.
Youdon’thavetoverifyhouseholdsizeinthefollowingsituations:
Foradependentstudent,thehouseholdsizereportedistwowithasingle,divorced,separated,orwidowedparentor
isthreewithparentswhoaremarriedorareunmarriedandlivingtogether
Foranindependentstudent,thenumberreportedistwoifthestudentismarriedoroneifthestudentissingle,
divorced,separated,orwidowed
Keepinmindthathouseholdsizeneedstoalignwiththeanswerstotherelevantdependencystatusquestions,suchas
theoneabouthavingdependentsotherthanaspouse.Ifverificationrevealsthatanswersdonotmatch,theFAFSAform
needstobecorrectedsothattheinformationisinalignment.
Numberincollege
Youcandocumentthisitemwithastatementsignedbythestudent(and,ifheorsheisdependent,atleastoneparent)
thatgivesthenameandageofeachpersoninthehousehold(excludingtheparentsofadependentstudent)whois
enrolledatleasthalftimeinadegreeorcertificateprogramataneligiblepostsecondaryinstitutionalongwiththename
ofeachpostsecondaryinstitution.Thisstatementcanalsobewrittentodocumenthouseholdsizeaswell.Completionof
theDepartment’sverificationsuggestedtextcansatisfybothitemsasoutlinedinGEN-21-06.
Ifyouhavereasontodoubttheenrollmentinformationreported,youmustobtainfromeachschoolastatementthatthe
namedpersonwillattendthereonatleastahalf-timebasis.Youdon’thavetogetsuchastatementifthepersonhasnot
yetregistered,isattendinglessthanhalftime,orwillbeattendingyourschool.
IfyouhavereasontodoubtwhetherareportedschoolisTitleIVeligible,youmustinsureitis,suchasbycheckingtosee
ifithasafederalschoolcodeorcheckingwithyourregionalschoolparticipationdivision.
Youdon’thavetoverifythenumberincollegeifthereportednumberenrolledisone(thestudentonly).
Identityandstatementofeducationalpurpose
Studentsshouldappearinpersonatyourschoolandpresentavalid,unexpired,1government-issuedphotoidentification
(ID)suchasaU.S.passport,adriver’slicenseorotherstate-issuedID.Anunexpiredvalidgovernment-issuedphoto
identificationisoneissuedbytheU.S.government,anyofthe50States,theDistrictofColumbia,theCommonwealthof
PuertoRico,afederallyrecognizedAmericanIndianandAlaskaNativeTribe,AmericanSamoa,Guam,theVirginIslands,
theCommonwealthoftheNorthernMarianaIslands,theRepublicoftheMarshallIslands,theFederatedStatesof
Micronesia,ortheRepublicofPalau.
YoumustmaintainanannotatedcopyofthatIDthatincludesthedateitwasreceivedandthenameofthepersonyour
schoolauthorizedtoreceiveit.2NotethatanIDissuedbyastateuniversityorcollegeisnotsufficientforthispurpose.
NorisamilitaryIDsince18U.S.Code§701prohibitsitfrombeingphotocopied.
Householdsizedocumentation
34CFR668.57(b)
Numberincollegedocumentation
34CFR668.57(c)
Studentsmustalsosign(itmustbea“wet”signature)astatementofeducationalpurposethatcertifieswhotheyareand
thatthefederalstudentaidtheymayreceivewillonlybeusedforeducationalpurposesandforthecostofattendingthe
schoolforthe2022–2023year.UnliketheothersuggestedtextprovidedinGEN-21-06,thetextforthe“Statementof
EducationalPurpose”isnotsuggested—youmustusetheexactlanguagegiven(thestudent’sidentificationnumber
isoptionalthoughifcollectedelsewhereonthesamepageasthestatement).Afterexaminingthestatement,youmay
convertitintoanelectronicrecord.YoumustkeepthatortheoriginalforatleasttherequiredTitleIVrecordretention
period.
Astudentwhoisunabletoappearatyourschoolmustgotoanotarypublicandsignthestatementofeducational
purpose.Heorshemustthensubmittoyourofficethatstatement(again,withthe“wet”signature),acertificationfrom
thenotarythatheorsheappearedbeforethenotaryandpresentedagovernment-issuedphotoIDconfirminghisorher
identity,andacopyofthesameID.CurrentlytheDepartmentdoesnotauthorizetheuseofonlinenotaryservicesasan
alternativetotraditional,in-personnotaryservices.
TheREALIDActaffectspeopleenteringcertainrestrictedareaswhereidentificationisrequired:federalfacilities,
nuclearpowerplants,andfederallyregulatedcommercialairplanes.Becausetherearecurrentlynorestrictionsunderthe
actonagenciesacceptinganIDthatisnotcompliantwiththeact(typicallyonemarked“notforfederalidentification”)
forotherpurposes,suchanIDisacceptableforverificationofidentity/statementofeducationalpurpose.Itmustbea
government-issuedIDthathasnotexpiredandincludesthestudent’sphotoandname.
1TheIDjustneedstobeunexpiredatthetimeitischecked.Forprovingidentity,itdoesnotmatteriftheIDisduetoexpireduringtheawardyear.
2Theschoolmaydeterminewhichofitsstaffareauthorizedtoreviewanapplicant’sidentity.Werecommendthattheperson(s)befull-timestaffand
theschoolkeeparecordofwhotheyare.
InterimDisbursements
Interimdisbursementsareallowedeitherpriortocompletingverificationorafterverificationbutbeforereceivingthe
correctedSARorISIR.IfyouhavenoreasontoquestiontheaccuracyoftheinformationontheFAFSAform,priorto
completingverificationyoumayatyourdiscretion
1. makeonedisbursementofPellandFSEOGfundsfortheapplicant’sfirstpaymentperiod;
2. permitFWSemploymentforthefirst60consecutivedaysafterthestudentenrollsfortheawardyear;or
3. originatebutnotdisburseaDirectSubsidizedLoan.
IfverificationresultsinchangestotheFAFSAinformationthatyoudeterminewillnotalterawardamounts,youmayat
yourdiscretiontakeactions1–3aswellasdisburseaDirectSubsidizedLoanpriortoreceivingthecorrectedvalidSARor
ISIR(definedasaSARorISIRonwhichalltheinformationreportedonastudent’sFAFSAformisaccurateandcomplete
asofthedatetheapplicationissigned;see34CFR668.2).
Overpaymentsfrominterimdisbursements
IfpriortoverificationyoumakeaninterimdisbursementofPellorFSEOGfunds,yourschoolisliableforanyoverpayment
thatresults.Ifyoucan’teliminateitbyreducingsubsequentdisbursementsorhavingthestudentreturnthemoney,your
schoolmustuseitsownfundstoreimbursetheappropriateprogrambytheearlierof60daysafterthestudent’slastday
ofattendanceorthelastdayoftheawardyear.
IfpriortoverificationyourschoolpermitsprovisionalFWSemploymentofstudentsforupto60days,itisliableforany
Interimdisbursements
34CFR668.58
overpaymentitcan’trecoverbyadjustingotheraid,anditmustreimbursetheFWSaccountfromitsownfunds.Students
mustbepaidforallworkperformedoutofyourschool’spayrollaccount—theycan’tberequiredtorepayFWSwages
earnedexceptwhentheyareprovenguiltyoffraud.
IfyoumakeaninterimdisbursementaftercompletingverificationbutpriortoreceivingacorrectvalidSARorISIR,and
youfailtoreceivetheSARorISIRwithinthedeadlinesdiscussedlaterinthischapter,yourschoolmustuseitsownfunds
toreimbursetheappropriateprogramandensurethatthestudentispaidunderitsownpayrollaccountforallwork
performed.
Schoolsthatcan’tmakeinterimdisbursements
SchoolsontheHeightenedCashMonitoring2(HCM2)andReimbursementpaymentmethods(seeVolume4,Chapter1)
must,aspartoftheirrequestforTitleIVfundsfromtheDepartment,submitdocumentationshowingthatstudentswere
eligibletoreceivethefundsdisbursedtothem(andforwhichtheschoolsareseekingreimbursement).Becausefinal
determinationofstudenteligibilityincludescompletingverification,HCM2andreimbursementschoolsarenotableto
makeinterimdisbursements.
UpdatingInformation
Generally,astudentcannotupdateinformationthatwascorrectasofthedatetheapplicationwassignedbecausethe
FAFSAformisconsideredtobea“snapshot”ofthefamily’sfinancialsituationasofthatdate.Forexample,ifthe
student’sfamilysoldsomestockafterthestudentsignedtheFAFSAformandspentthemoneyonanunreportedasset
suchasacar,heorshecan’tupdatetheirinformationtoshowachangeinassets.AftertheFAFSAformissigned,only
certainitemscanbeupdatedunderthefollowingconditions:
1. AllapplicantswhosedependencystatuschangesmustupdatethatandtherelatedFAFSAinformation
throughouttheawardyearexceptwhentheupdateisduetothestudent’smaritalstatuschanging.
2. AllapplicantsselectedbytheDepartmentoraschoolforverificationofhouseholdsizeornumberin
collegemustupdatethosenumberstobecorrectasofthedateofverificationunlesstheupdateisduetoachange
inthestudent’smaritalstatus.Documentinghouseholdsizeornumberincollegeisnotrequiredinasubsequent
verificationinthesameyeariftheinformationhasnotchanged.
Atyourdiscretionyoumayupdateundereither1or2eveniftheupdateisduetoachangeinthestudent’smaritalstatus
ifyoudeemitnecessarytoaddressaninequityortoreflectmoreaccuratelythestudent'sabilitytopay.Suchadecision
mustbeonacase-by-casebasis,andyoumustdocumentyourreasonsforit.Youmustalsoupdateallotherpertinent
information,suchasspousalincomeandtaxespaid,tobeconsistentwiththenewmaritalstatus.Dothisfirstifthe
studentisselectedforverification,andthencompleteverificationoftheupdatedapplication.Ifyouchangethestudent's
statustounmarriedandthatmakeshimorherdependent(becauseheorshewasindependentonlyduetomarriage),his
orherFAFSAformmustbeupdatedwithhisorherparents’information.Yourschoolmayhaveapolicyofnotconsidering
Recoveryoffundsfrominterimdisbursements
34CFR668.61
Updatinginformation
34CFR668.55
suchupdatesafteraspecificcensusdate.
Note,however,thatyoucannotupdatethemaritalstatusofanalreadyindependentstudentwhosedependencystatus
hasnotchangedbecauseofhisorhermarriageordivorceandwhowasnotselectedforverification.Insuchacaseyou
mustselectthestudentforverificationifyouwanttoexerciseyourdiscretiontoupdatetheirmaritalstatusandallother
associatedinformation.
Parentremarriageafterapplying
Whiletheapplicantdoesnottypicallyupdatehouseholdsizeornumberincollegebecauseofachangeinhisorher
maritalstatus,iftheapplicantisadependentstudentandhisorsheparentremarriesbetweenapplicationand
verification,hemustupdatehouseholdsizetoincludethenewstepparent.However,thestudentwouldnotcountthenew
stepparent’sincomeandassets.Aschoolcanuseprofessionaljudgmenttoincludethestepparent’sincomeorto
otherwiseaccountforthechange.SeeHEASec.475(f)(3)and34CFR668.55(b).
CorrectingErrors
Asexplainedinthelastsection,youonlymakeupdatesinspecifiedsituations,butforstudentswhoarenotselectedfor
verification,youortheymustcorrectandsubmitforprocessinganyerrorsreportedontheoriginalFAFSAformthatwould
changetheEFCorthestudents’eligibilityforTitleIVaid.
Forstudentswhoareselectedforverificationandreceivingsubsidizedstudentaid,changestoanynon-dollaritemandto
anydollaritemof$25ormoremustbesubmittedforprocessing.Seethesectionbelowon"changesinaselected
applicant’sFAFSA."
ChangesinaSelectedApplicant'sFAFSA
Toreceivesubsidizedstudentaid,studentsortheschoolmustsubmitforprocessinganychangesresultingfrom
verificationtoanon-dollaritemorasingledollaritemof$25ormore.Also,ifyouarerequiredtosubmitanychange
throughCPSbecauseofverification,youmustsubmitallchanges,includingamountsthatarebelow$25.
Campus-BasedandDirectLoanchanges
WhenstudentsreceivesubsidizedstudentaidotherthanPellGrantsandthereisachange,adjustthepackageonthe
basisoftheEFConthecorrectedvalidSARorISIR.Iftherewasaninterimdisbursement,complywiththerelevantrulesif
thepackagemustbereduced.Iftherewasaregulardisbursementandthepackagemustbereduced,complywithFSEOG
overpaymentrulesorwiththerulesfordealingwithexcessloanproceedsforDirectSubsidizedLoans.
Pellchanges
IfFAFSAdatachange,recalculatethePellGrantaccordingtotheEFConthecorrectedvalidSARorISIR.Youcanonlypay
anincreasedPellGrantifyouhavethatoutputdocumentanditsupportsanincreasedPellaward.
IfthePellGrantisreducedandthestudentreceivedaninterimdisbursement,adjustfollowingdisbursementsas
necessary.Failingthat,thestudentshouldreimbursethePellGrantProgram,or,ifheorshedoesnotreturnthe
overpayment,yourschoolmustreimbursethePellprogramwithitsfunds.IfthestudentreceivedPellGrantmoneyasa
regulardisbursement,heorsheisresponsibleforrepayingtheoverpayment.SeeVolume4,Chapter3forinformationon
ChangestoFAFSAinformation
34CFR668.59Whenthereisanoverawardfromaregulardisbursement,thefollowingindividualprogram
regulationsapply:PellGrants:34CFR690.79FSEOG:34CFR673.5(f)SubsidizedDirectLoan:34CFR685.303(g)
overpayments.
Selectionafterdisbursement
Astudent’sapplicationmightbeselectedforverificationaftercorrectionsaresubmittedandthestudenthasbeenpaid
basedonthepreviousunselectedCPStransaction.Youmustverifyhisorherapplicationbeforemakingfurther
disbursements.Ifverificationdoesnotjustifyaidalreadydisbursed,thenthestudentisresponsibleforrepayingallaidfor
whichheorsheisnoteligible,thoughthestudentmaykeepanyDirectLoanmoneyheorshereceivedandFWSwages
earned.Seetheguidancedescribedunderthe“DeadlinesandFailuretoSubmitDocumentation”sectionlaterinthis
chapterforwhathappensifthestudentfailstocompleteverification.
Example:OwenisattendingGuerreroUniversity.Hisapplicationisn’tselectedforverification,andhereceivesaidinthe
fall.InDecember,OwensubmitsacorrectiononhisSARthatcausestheensuingtransactiontobeselectedfor
verification.TheaidadministratoratGuerrerotellsOwenheneedstosubmitverificationdocumentsifhewantshisaidfor
thespringandifhewantstokeepthePellfundshereceivedforthefall.However,Owendoesn’tturninthedocuments.
Owendoesn’thavetorepaytheDirectLoanhegotinthefall,buthedoeshavetoreturnthePellGrant,andGuerrero
mustcancelhisaidpackageforthespring.
Disbursingunsubsidizedaid
ForstudentswhoareselectedforGroupV1andareeligibleforbothsubsidizedandunsubsidizedaid,aschoolmay,ona
case-by-casebasisandwithproperdocumentation,disburseDirectUnsubsidizedandPLUSloanspriortocompleting
verificationthatwillbedelayed.Toavoidexceedingthestudent’sfinancialneed,theschoolmustconsiderthesubsidized
aidheorshewillreceiveandadjusttheaidamountsafterverificationifnecessary.
IfthestudentnevercompletesV1verification,theDirectUnsubsidizedandPLUSloanaidthatwasdisbursedmaybekept.
Ifit’sdeterminedthatthestudentwasineligiblewhenheorshereceivedaid,seetherelevantguidanceonreturningaid
insuchsituationsinVolume4,Chapter3.
Afterdocumentationiscomplete
Whenyou’veobtainedallnecessaryverificationdocumentsfromthestudent,youshouldcomparethemtotheSARorISIR
youarereviewingforpayment.Ifallthestudent’sinformationiscorrectorhasbeencorrectedandthereareno
outstandingissuesorconflictinginformationthatyouhavenotresolved,youmayawardanddisburseaidforwhichthe
studentiseligible.
SometimesschoolsaskifevenfurtherverificationisneededtoresolvediscrepanciesbetweentheISIRandwhatthe
studentprovidedforverification.Theanswerisno,unlessyouhavereasontodoubttheaccuracyoftheverification
information.AcceptabledocumentationeitherconfirmsthatanitemwasrightontheISIR,oritisusedtocorrectthat
item.Thatisthepurposeofverification;continuedfact-findingisnotnecessary.
HowtoSubmitCorrectionsandUpdates
CorrectionsandupdatescanbesubmittedbythestudentontheSARortheweborbytheschoolusingFAAAccesstoCPS
OnlineortheElectronicDataExchange(EDE).Inadditiontothefollowinginformation,seealso“CorrectionsandUpdates”
inthe2022–2023ISIRGuide.
UsingtheonlineFAFSA
AnystudentwhohasanFSAID—regardlessofhowheorsheoriginallyapplied—maycorrectanyofhisorherowndatain
theonlineFAFSA.Ifdependentstudentsneedtochangeparentaldata,aparentmusteithersignelectronicallywithhisor
herownFSAIDorprintoutandsignasignaturepage.
SubmittingchangesviaFAAAccesstoCPSOnlineorEDE
YourschoolcansubmitcorrectionsandupdateselectronicallythroughFAAAccesstoCPSOnlineorEDExpressevenifthe
originalapplicationwasn’tsubmittedwiththatmethod.Ifyourschoolisn’tlistedonthetransactionyouwanttocorrect,
thestudentwillhavetogiveyoutheDRNprintedontheSARorSARAcknowledgementsothatyoucanaddyourschoolin
thenextavailableinstitutionfieldandthengetelectronicaccesstotheresultingcorrectedtransaction.Ifallthefieldsare
filled,thestudentwillhavetotellyouwhichschooltoreplacewithyours.
Correctionsandupdatessentbyaschoolmustbebasedonreliabledocumentationinitspossessionthatsupportsthe
changestoapplicantdataorsigneddocumentationfromthestudentorparentofadependentstudent.Examplesof
reliabledocumentationincludeapplicationsforadmission,acceptanceletters,courseregistrationinformation,or
academictranscripts.Examplesofsigneddocumentationfromastudentorparentonwhichcorrectionsandupdatesmay
bebasedincludePart2oftheSAR,acopyofthecorrectionorupdate,student/parentstatement,verificationdocuments,
orcopiesoftaxreturnsortranscripts.Unlikethosefortheoriginalapplication,thesedonothavetobewetsignatures.
TheCPSwillprocessthechange,sendanISIRtotheschool,andsendthestudentaone-pageSARacknowledgementor,if
theCPShasthestudent’semailaddress,anemailwithalinktohisorherSARinformationontheweb.
UsingtheSARtomakecorrections
StudentswhoreceivedapaperSARmaymakecorrectionsorupdatesonit,thensignandreturnittotheFAFSAprocessor
attheaddressgivenattheendoftheSAR(ofcourse,studentswithFSAIDscaninsteadusetheonlineFAFSA).One
parentmustalsosignifthestudentisdependentandparentdatawaschanged,unlesstheonlycorrectionsaretothe
institutionorhousingcodes,theaddress,ortelephonenumber.
IfthestudentappliedelectronicallythroughaschoolorreceivedanemaillinktoSARinformationonthewebbutwould
liketomakecorrectionswithapaperSAR,heorshecanhaveonemailedtothembycallingtheFSAICat1-800-4-FED-AID
andprovidinghisorhername,SSN,anddateofbirth.
Addingschoolsandchangingastudent’saddress
Aswithotherchanges,astudentcanaddschoolsorchangehisorheraddress,emailaddress,ortelephonenumber
onlineoronapaperSAR.Butheorshecanalsoupdatetheseitemsoverthephonebycalling1-800-433-3243and
providingtheirDRN.YoucansubmitthosechangesforthestudentthroughFAAAccesstoCPSOnline,although,asnoted
before,ifyourschoolwasnotlistedonthestudent’sapplication,youwillneedhisorherDRNtoaddyourschool.
TheFAFSAformhaslimitedspaceforastudenttolistschoolsthatwillreceivetheapplicationdata:fourschoolscan
appearonthepaperapplication,tenwitheithertheonlineFAFSA,FAAAccess,orEDExpress.Ifthestudentwants
informationsenttomoreschools,heorshecanuseanyofthemethodslistedpreviouslytoreplacesomeorallofthe
originalschools,thoughthereplacedschoolswillnotreceiveanISIR.Forexample,ifthestudentoriginallylisted10
schoolsontheapplicationandthenreplacedtwoschoolswithtwonewones,thosethatwerereplacedwouldnotreceive
anISIRfromthiscorrectionoranysubsequentcorrectiononwhichtheydidnotappear.
Signatures
Anyrequiredsignatures,suchasthoseonworksheetsoroncopiesoftaxreturns,mustbecollectedatthetimeof
verification—theycan’tbecollectedaftertheverificationdeadlineforthatawardyear.
Forverificationdocumentation,aschoolmaycollectanelectronicsignatureforanapplicant,parent,orspouseifthe
processincludesanassuranceoftheidentityofthepersonsigning.ThisisoftenaccomplishedwithaPINorpasswordthat
isassignedonlyaftertheidentityofthepersonreceivingthePINorpasswordhasbeenauthenticated(DOC-Q12ontheQ
andApage).
DeadlinesandFailuretoSubmitDocumentation
Youmustrequirestudentsselectedforverification—eitherbyyourschoolortheDepartment—tosubmitthe
documentationbythedatespecifiedbyyourschool(forCampus-BasedandDirectLoans)ortheDepartment(forPell).
Campus-BasedandDirectLoans
Ifastudentdoesn’tprovideverificationdocumentationwithinareasonabletimeperiodthatyourschoolhasestablished,
youcannot
disbursemoreFSEOGfunds,
employorpermitfurtherFWSemployment,or
originateordisburseanyadditionalDirectLoans(subsidized,unsubsidized,orPLUS).
ThestudentmustrepayanyFSEOGfundsheorshereceivedthatyear.
Ifthestudentfailstocompleteverificationwithinthetimeperiodestablishedbyyourschoolandifyoureceivedany
DirectSubsidizedLoanfundsforthestudentthatyoudidnotdisburse,youmustreturnsomeorallofthosefundsunder
theexcesscashtoleranceregulation[see34CFR668.166(b)andVolume4,Chapter1].
Notwithstandingthis,ifthestudentprovidesthedocumentationafteryourschool’sdeadline,youmay,atyourdiscretion,
stillprovideaidifstillwithintheDepartment’soverallverificationdeadlines.
PellGrants
AstudentselectedforverificationmaysubmitavalidSARoraschoolcanreceiveavalidISIRafterthePelldeadlinebut
beforetheverificationdeadlinepublishedintheFederalRegister.Ifastudentdoesnotprovidetheverification
documentationoryoudonotreceivethevalidSARorISIR(ifnecessary)withinthisadditionaltime,heorsheforfeitstheir
PellGrantfortheawardyearandmustreturnanyPellmoneyalreadyreceivedforthatyear.
Otherconsiderations
TheDepartmentmaydeterminenottoprocesstheFAFSAformofanapplicantwhohasbeenrequestedtoprovide
documentationuntilheorshedoessoortheDepartmentdecidesthereisnolongeraneedforit.
APellapplicantselectedforverificationmustcompletetheprocessbythedeadlinepublishedintheFederalRegister.The
noticefor2021-2022waspublishedonJune24,2021,andthedeadlineforthatyearisSeptember17,2022,or120days
afterthelastdayofthestudent’senrollment,whicheverisearlier.Whenthenoticefor2022–2023ispublished,the
correspondingdeadlinedateisexpectedtobeSeptember16,2023.Campus-BasedandDirectLoanapplicantsmust
completeverificationbythesamedeadlineorbyanearlieroneyouraidofficeestablishes.
VerificationiscompletewhenyouhavealltherequesteddocumentationandavalidISIRorSAR(oneonwhichallthe
informationisaccurateandcomplete).Thisincludesanynecessarycorrections,whichmustbemadebytheFederal
Registerdeadlinesforsubmittingpaperorelectroniccorrections.
Latedisbursements
Generallyastudentceasestobeeligibleforaidonceheorshehasfinishedthepaymentperiodand/orisnolonger
Failuretosubmitdocumentation
34CFRPellGrants668.60(c);34CFRCampus-Based/DirectSubsidizedLoan668.60(b)
VerificationcompletedwithinadditionaltimeperiodforPell
34CFR668.60(c)(1)
enrolled.However,thestudentmaysubmitverificationdocumentationandreceivealatedisbursementafterthattimeif
theDepartmentprocessedaSARorISIRwithanofficialEFCwhileheorshewasstillenrolled.Forinformationonpost-
withdrawaldisbursements,seeVolume5andformoreinformationonlatedisbursements,seeVolume4.
Verificationstatuscodes
WhenyoudisburseaPellGrant,youmustreportthestudent’sverificationstatusthroughtheCommonOriginationand
DisbursementSystem(COD)evenifheorshewasn’tselectedforverification.
V—Youhaveverifiedthestudent.ThisincludesstudentsselectedbytheCPSandthoseyourschoolchosetoverifybased
onitsowncriteria.
W—ThestudentwasselectedforverificationbytheCPSoryourschool,andyouchosetopayafirstdisbursementofPell
withoutdocumentation(interimdisbursement).Thiscodemustbeupdatedonceverificationiscomplete,orCOD
willreducethePellGranttozero.InJuly2021,messagesweresenttoschoolsthatstillreporteda“W”statuscodefor
2020-2021studentrecordswarningthatdisbursementsmadeinthesecaseswouldbeconsideredoverawardsand
reducedto$0.Ofcourse,someofthesestudentsmightnotyethavereachedtheverificationdeadline,inwhichcase
schoolscanresubmittheirdisbursementrecord.SeetheApril8,2021electronicannouncement.
S—TheCPSselectedthestudentforverification,butyoudidnotverifythestudentbecauseheorshesatisfiedoneofthe
exclusionsdescribedearlierinthechapter(exceptthepost-enrollmentexclusion;see“Blank”next).
Blank—Reportablankifyouhavenotperformedverificationforotherreasons,i.e.,becauseneithertheCPSnoryour
schoolselectedthestudentorbecausethestudentwasselectedbytheCPSafterceasingtobeenrolledatyourschool
andall(includinglate)disbursementsweremade.Ablankalsoapplieswhenyoudisbursedaidonaninitialtransaction
notselectedforverification,alatertransactionisselected,andthestudentnevercompletesverification.
SuggestedVerificationText
WearenolongerprovidingthesuggestedtextaspartoftheApplicationandVerificationGuide.Toreviewthesuggested
textforthe2022-2023awardyear,pleaseseetheattachmenttoGEN-21-06.Thesuggestedtextfulfillsverification
requirements,butschoolsdonothavetouseit,exceptasnotedbelow.Instead,theymaydevelopandusetheirown(or
someoneelse’s)text,forms,documents,statements,andcertificationsthatarespecifictotheitemsrequiredtobe
verifiedforaparticularstudentorgroupofstudentsattheschool.However,schoolsmustnotputthesealofthe
DepartmentofEducationonanyverificationdocuments.
Theoneexceptionisthatschoolsmustusetheexactlanguageprovidedinthe“StatementofEducationalPurpose”for
studentswhoareplacedinverificationtrackinggroupsV4orV5.Thisdoesnotincludetheaccompanyingnotary’s
certificateofacknowledgment;forthattheschoolmayusesomeotherform,suchastheoneitsstateuses.
Chapter5
SpecialCases
Thereareunusualsituationswhereyouwillneedtoexerciseyourdiscretionasafinancialaidadministrator:when
modifyingdatausedtocalculatetheexpectedfamilycontribution(EFC),performingdependencyoverrides,resolving
conflictinginformation,reportingcasesoffraud,anddeterminingastudenttobeanunaccompaniedhomelessyouth.
Whilemanyquestionsyougetasafinancialaidadministrator(FAA)willhaveroutineanswers,somesituationswillrequire
extradiscretiononyourpart.Toaccountforspecialcircumstancesofastudent,youmaychoosetoexerciseprofessional
judgment(PJ)toadjustastudent’scostofattendanceorthedatathatdetermineastudent’sEFC.Youmightdecidethat
unusualcircumstanceswarrantmakingadependentstudentanindependentstudent.Ifyoureceiveconflicting
informationforastudent,youwillneedtoresolvethediscrepancy.Insomecasesyoumaydiscoverthatastudenthas
beenguiltyoffraudandshouldbereportedtotheDepartment.Andyoumayneedtodetermineifastudentshouldbe
classifiedasanunaccompaniedhomelessyouth.
ProfessionalJudgment
AnaidadministratormayusePJonacase-by-casebasisonlytoadjustthestudent’scostofattendanceorthedataused
tocalculatehisorherEFC.Thisadjustmentisvalidonlyattheschoolmakingthechange.YousubmitaPJchange
electronically,viaFAAAccesstoCPSOnlineorthird-partysoftware,andmaydosowithoutasignaturefromthestudent
orparent.InFAAAccessorElectronicDataExchange(EDE),youmustselect“EFCadjustmentrequested”forthe
professionaljudgmentfield.ThenextISIRwillindicate“Professionaljudgmentprocessed.”
Thereasonfortheadjustmentmustbedocumented(byathirdpartyifpossible),anditmustrelatetothespecial
circumstancesthatdifferentiatethestudent—nottoconditionsthatexistforawholeclassofstudents.Youmustresolve
anyinconsistentorconflictinginformationshownontheoutputdocumentbeforemakinganyadjustments.AnFAA’s
decisionregardingadjustmentsisfinalandcannotbeappealedtotheDepartment.
Thestatutestatesthatnothingwithinitshallbeconstruedaslimitingtheauthorityofaidadministratorstomakedata
adjustmentsforsomesituations.However,thelawgivesexamplesofspecialcircumstances,suchasmedicalordentalor
nursinghomeexpensesnotcoveredbyinsurance.UseofPJisneitherlimitedtonorrequiredforthesituationslisted(see
thesectionentitled“EntiretextoftheHEAsectiononPJ”laterinthischapter).
AnothersituationwhereyoumightwanttouseprofessionaljudgmentinvolvesRothIRAs.Whensomeoneconvertsa
regularIRAintoaRothIRAbytransferringfunds,theamountconvertedhastobereportedastaxableincomeonthetax
return.Therefore,theincomereportedontheFAFSAformwillbehigherthanwithouttheRothconversion,eventhough
thefamilydoesn’tactuallyhaveadditionalincomeorassetsavailable.YoucanusePJtoreducetheincomeandtaxes
paidtotheamountthatwouldhavebeenreportediftherewasnoRothconversionifyouthinktheadjustmentis
warrantedforastudent.Aswiththespecificspecialcircumstanceslistedinthelaw,youarenotrequiredtomakean
adjustmentinthissituation.
Thelawdoesn’tallowyoutomodifyeithertheformulaorthetablesusedintheEFCcalculation;youcanonlychangethe
costofattendanceorthevaluesofspecificdataelementsusedintheEFCcalculation.Inaddition,youcannotadjustdata
elementsorthecostofattendancesolelybecauseyoubelievethetablesandformulaarenotadequateorappropriate.
Thedataelementsthatareadjustedmustrelatetothestudent’sspecialcircumstances.Forexample,ifafamilymember
isill,youmightmodifytheAGItoallowforlowerearningsinthecomingyearormightadjustassetstoindicatethatfamily
savingswillbespentonmedicalexpenses.
YoualsocannotusePJtowaivegeneralstudenteligibilityrequirementsortocircumventtheintentofthelawor
regulations.Forinstance,youcannotusePJtochangeFSEOGselectioncriteria.Norcanyouincludepostenrollment
activityexpensesinthestudent’sCOA.Forexample,professionallicensingcoststobeincurredaftertheenrollment
periodwouldnotbeincludable(thoughone-timelicensingcostsincurredduringtheenrollmentperiodmaybe—seeCost
ofAttendanceinVolume3,Chapter2).
Occasionallyaidadministratorshavemadedecisionscontrarytotheprofessionaljudgmentprovision’sintent.These
“unreasonable”judgmentshaveincluded,forexample,thereductionofEFCsbasedonrecurringcostssuchasvacation
expenses,tithingexpenses,andstandardlivingexpenses(e.g.utilities,creditcardexpenses,children’sallowances,etc.).
Aidadministratorsmustmake“reasonable”decisionsthatsupporttheintentoftheprovision.Yourschoolisheld
accountableforallprofessionaljudgmentdecisionsandforfullydocumentingeachdecision.
WhenconsideringusingPJ,anFAAshouldkeepinmindthatanincomeprotectionallowance(IPA)isincludedintheEFC
calculationtoaccountformodestlivingexpenses.Beforeadjustingforanunusualexpense,considerwhetheritisalready
coveredbytheIPA.Itisreasonabletoassumethatapproximately30%oftheIPAisforfood,22%forhousing,9%for
transportationexpenses,16%forclothingandpersonalcare,11%formedicalcare,and12%forotherfamily
consumption.TheincomeprotectionallowanceisoneoftheintermediatevaluesintheFAAInformationsectionofthe
outputdocument(labeledas“IPA”).SeeChapter3fortheIPAvaluesandhowtheyimpactthestudent’sEFCcalculation.
Ifyouuseprofessionaljudgmenttoadjustadataelement,youmustusetheresultingEFCconsistentlyforallFSAfunds
awardedtothatstudent.Forexample,ifforawardingthestudent’sPellGrantyouadjustadataelementthataffectsthe
EFC,thatnewEFCmustalsobeusedtodeterminethestudent’seligibilityforaidfromtheCampus-BasedandDirectLoan
programs.
IfyoumakeaPJadjustment,youmustsettheFAAAdjustmentflaginFAAAccesstoCPSOnlineorviathe
ElectronicDataExchange(EDE).
TheDepartmentisawarethattheuseofprior-prioryearincomedataontheFAFSAformmaymakeitmorelikelyforPJs
toapply.Schoolsshouldfollowtheguidelinespresentedhereandbeawarethatwhiletheymayidentifyacategoryof
studentswithsimilarcircumstancestoconsiderforapossibleprofessionaljudgmentadjustment(e.g.,studentswhoquit
jobstostartschool),theymaynot,however,automaticallyprovideidenticaltreatmenttoallstudentsinthatcategory.
EachPJcasemustbedeterminedanddocumentedindividually.
Also,rememberifyouexercisePJforastudentwhowasselectedforverification(byyouortheDepartment),youmust
completeverificationfirst.ThisistoensurethatyouhavecorrectinformationbeforeconsideringaPJadjustment.You
may,however,completeverificationandthenmakethePJadjustmentonthesametransaction.However,youdonot
havetoverifyinformationthatyouwillentirelyremoveduetoPJ.Forexample,ifadependentstudent’sparentshave
separatedaftercompletionoftheFAFSAformandoneparentisnolongerinthehouseholdsizeandyoudecidetousePJ
toremovethatparent’sincomefromtheFAFSAform,youdonothavetofirstverifyhisorherincome.Also,usingPJ
doesnotrequireyoutoverifyastudent’sapplicationifheorshewasnotalreadyselectedforverification
bytheDepartmentoryourschool.
Finally,ithasbeendeterminedthataschoolisnotpermittedtomakeaprofessionaljudgementforastudentafterthat
studenthasceasedtobeeligible.Thisapproachisconsistentwithapplicablestatute(HEASec.479A(a)),whichframes
theauthorityforFAAstomakeprofessionaljudgementsonacase-by-casebasistothecostofattendanceorthevaluesof
thedataitemsrequiredtocalculatetheexpectedstudentorparentcontribution(orboth)asbeingextendedto“allowfor
treatmentofanindividualeligibleapplicantwithspecialcircumstances.”Atthepointwhereastudentisnolonger
enrolledandceasestobeaneligiblestudentforpurposesofthatenrollment,heorsheisnolongerconsideredaneligible
applicant.
TheverificationpageontheFSAAssessmentssitehasguidancetohelpyoureviewyourPJanddependencyoverride
procedures;seeActivity2.
PJexamples
Example1:Kitty’smotherhadincomeearnedfromworkof$25,000in2020butisnolongeremployed.Afterreceiving
documentationconfirmingthis,theFAAatKriegerCollegedecidestoadjusttheAGIreportedforKitty’sparentstotake
intoaccounttheirreducedincome.TheFAAalsoreducestheincomeearnedfromworkforKitty’smothertozero.
Example2:In2020Alanhad$3,550inmedicalexpensesthatwereoutof-pocketcosts.Heismarried,hastwochildren,
andistheonlymemberofhishouseholdincollege,sohisIPAis$41,420.Becausehisexpenseswerelessthanthe
amountformedicalexpensesalreadyprovidedforintheIPA(11%of$41,420is$4,556),theaidadministratoratSarven
TechnicalInstitutedoesnotadjustAlan’sFAFSAform.
Reminder
EntiretextoftheHEAsectiononPJ
HEASec.479A(a)INGENERAL—Nothinginthispartshallbeinterpretedaslimitingtheauthorityofthefinancialaid
administrator,onthebasisofadequatedocumentation,tomakeadjustmentsonacase-by-casebasistothecostof
attendanceorthevaluesofthedataitemsrequiredtocalculatetheexpectedstudentorparentcontribution(orboth)to
allowfortreatmentofanindividualeligibleapplicantwithspecialcircumstances.
However,thisauthorityshallnotbeconstruedtopermitaidadministratorstodeviatefromthecontributionsexpectedin
theabsenceofspecialcircumstances.Specialcircumstancesmayinclude:
tuitionexpensesatanelementaryorsecondaryschool;
medical,dental,ornursinghomeexpensesnotcoveredbyinsurance;
unusuallyhighchildcareordependentcarecosts;
recentunemploymentofafamilymemberoranindependentstudent;
astudentorfamilymemberwhoisadislocatedworker(asdefinedinsection101oftheWorkforceInvestmentActof
1998);
thenumberofparentsenrolledatleasthalftimeinadegree,certificate,orotherprogramleadingtoarecognized
educationalcredentialataninstitutionwithaprogramparticipationagreementundersection487;
achangeinhousingstatusthatresultsinanindividualbeinghomeless(asdefinedinsection103oftheMcKinney-
VentoHomelessAssistanceAct);or
otherchangesinafamily’sincome,afamily’sassetsorastudent’sstatus.
Specialcircumstancesshallbeconditionsthatdifferentiateanindividualstudentfromaclassofstudentsratherthan
conditionsthatexistacrossaclassofstudents.Adequatedocumentationforsuchadjustmentsshallsubstantiatesuch
specialcircumstancesofindividualstudents.
Inaddition,nothinginthistitleshallbeinterpretedaslimitingtheauthorityofthestudentfinancialaidadministratorin
suchcases:
1. torequestandusesupplementaryinformationaboutthefinancialstatusorpersonalcircumstancesofeligible
applicantsinselectingrecipientsanddeterminingtheamountofawardsunderthistitle,or
2. toofferadependentstudentfinancialassistanceundersection428HoraFederalDirectUnsubsidizedStaffordLoan
withoutrequiringtheparentsofsuchstudenttofilethefinancialaidformprescribedundersection483ifthestudent
financialaidadministratorverifiesthattheparentorparentsofsuchstudenthaveendedfinancialsupportofsuch
studentandrefusetofilesuchform.
Nostudentorparentshallbechargedafeeforcollecting,processing,ordeliveringsuchsupplementaryinformation.
Dependentstudentswithoutparentsupport
Dependentstudentswhoseparentsrefusetosupportthemarenoteligibleforadependencyoverride,buttheymaybe
abletoreceivedependentlevelunsubsidizedDirectLoansonly.Forastudenttobeeligibleforthisprovision(thetextof
whichisintheprecedingsection),youmustgetdocumentation(1)thathisorherparentsrefusetocompletetheFAFSA
and(2)thattheydonotandwillnotprovideanyfinancialsupporttohimorher(includethedatesupportended).Ifthe
parentsrefusetosignanddateastatementtothiseffect,youmustgetdocumentationfromathirdparty(thestudentis
notsufficient),suchasateacher,counselor,cleric,orcourt.
Asnotedinthenextsection,thissituationdoesnotjustifyadependencyoverride.Butaswithoverrides,resolvingthe
situationisatyourdiscretion.Ifyoudecidethatastudentfallsintothiscategory,youmustdocumentyourdecisionand
UnderGEN-21-02,theDepartmentremindedfinancialaidadministratorsoftheirabilitytoexercisedocumented
professionaljudgmentwhendeterminingeligibilityofstudentsforfederalstudentaidandencouragedaid
administratorstoconsiderthespecialcircumstancesthatmayariseforstudentsandfamiliesduringtheongoing
COVID-19pandemic,especiallyastheyrelatetounemploymentorreductioninwork.
ensurethatthestudentsubmitsaFAFSAformandpassesalltheeligibilitymatches.Theresultwillbearejected
applicationwithnoEFC.YoucanthenawardthestudentunsubsidizedDirectLoansuptothemaximumthestudentwould
normallybeeligiblefordependingonhisorhergradelevel(butnottheamountastudentcangetwhenhisorherparent
isunabletogetaPLUSloan).SeeDCLGEN-08-12formoreinformation.
Refusingorreducingaloan
RememberthatthediscretionofFAAsextendstorefusingorreducingDirectLoanfundsaslongasthereasonis
documentedandretainedinthestudent’sfile,thedeterminationisdoneonacase-by-casebasis,giveninwritingtothe
student,andnotduetodiscriminationagainsthimorheronthebasisofrace,nationalorigin,religion,sex,income,age,
ordisability.
DependencyOverrides
AnFAAmayconductdependencyoverridesonacase-by-casebasisforstudentswithunusualcircumstances.IftheFAA
determinesthatanoverrideisappropriate,heorshemustmaintainthedeterminationwithanysupporting
documentation.However,noneoftheconditionslistedbelow,singlyorincombination,qualifyasunusual
circumstancesmeritingadependencyoverride:
1. Parentsrefusetocontributetothestudent’seducation.
2. ParentswillnotprovideinformationfortheFAFSAorverification.
3. Parentsdonotclaimthestudentasadependentforincometaxpurposes.
4. Studentdemonstratestotalself-sufficiency.
Unusualcircumstancesdoinclude(andmaycauseanyoftheaforementionedconditions)parentabandonment,an
abusivefamilyenvironmentthatthreatensthestudent’shealthorsafety,orthestudentbeingunabletolocatehis
parents.Insuchcasesanoverridemightbewarranted.
Theseconditionswouldalsonotdisqualifyastudentfrombeingahomelessunaccompaniedyouthorself-supportingand
atriskofhomelessness.
Anaidadministratormayoverrideonlyfromdependenttoindependent(thoughassuggestedearlier,ifanindependent
studentreceivessubstantialsupportfromothers,aschoolmayusePJtoadjusttheCOAorFAFSAdataitemssuchas
untaxedincome).
Documentationiscritical—itmustsupport,andincludethereasonfor,thedecisionandshouldinalmostallcases
originatefromathirdpartywithknowledgeoftheunusualcircumstancesofthestudent.
AnFAAmay,withoutgatheringdocumentation,useanoverridethatanotherschoolgrantedinthesameawardyear.
Refusingorreducingaloan
34CFR685.301(a)(8)
Dependencyoverrides
HEASec.480(d)(1)(I)and(d)(2).AlsoseeDearColleagueLettersGEN-03-07andGEN-11-15.
However,overridesdonotcarryoverfromoneyeartothenext;theFAAmustreaffirmeachyearthattheunusual
circumstancespersistandanoverrideisstilljustified.
Athirdpartythatknowsthestudent’ssituation—e.g.,ateacher,counselor,medicalauthority,memberoftheclergy,
prisonadministrator,governmentagency,orcourt—shouldestablishtheunusualcircumstances.Evidencecanbea
signedletteroranofficialdocument,suchasacourtorder.Ifthirdpartydocumentationisnotavailable,theschoolmay
(itisnotrequiredto)acceptasignedanddatedstatementfromthestudentorafamilymemberdetailingtheunusual
circumstances.Suchastatementshouldbealastresort.
Tooverridethestudent’sdependentstatusonaninitialapplicationthroughFAAAccesstoCPSOnline,theFAAshoulduse
theDependencyOverridecodeof“1”(seetheEDETechnicalReferenceformoreinformation).
ToauthorizeadependencyoverrideonapaperFAFSAform,theFAAmarksthebubbleforanoverride,labeled“D/O,”in
the“CollegeUseOnly”area,fillsintheschool’sfederalcode,andsigns.Aseparateletterattachedtotheapplicationin
lieuofmakingtheoverrideisnotacceptable.
Ifthestudenthasalreadyapplied,youcanuseFAAAccesstoauthorizeorcancelanoverride;overridescannotbedone
ontheSAR.Ifheorshehadanoverridedoneatanotherschoolinthecurrentyear,thatwillbenotedwiththeschool’s
federalcodeonFAAAccess.Onlytheschoolperformingtheoverridewillreceivethattransaction.Ifthestudentaddsyour
schooltothetransactionorifheorshegivesyouhisorherdatareleasenumber(DRN),youcanaccesstherecord.
Overrideexample:SaidisarefugeefromSyriawhoqualifiesforfederalstudentaidasaneligiblenoncitizen.Buthis
FAFSAformwasrejectedbecauseheisadependentstudentanddidnotprovidedataforhisparents.Whentheaid
administratoraskshimforhisparents’information,hesaystheyareinSyriaandhavebeendisplacedduetothe
upheavalthere,andhedoesn’tknowhowtocontactthem.TheFAAaskshimfordocumentationofthis,andSaidsays
thathehasanunclelivingintheU.S.whocanattesttohissituation.TheFAAasksforSaid’suncletoeitherappearin
personandsignastatementconfirmingSaid’saccountortosendtheaidofficeanotarizedstatement.Said’suncle,who
worksnotfarfromtheschool,comestotheaidoffice,signsthestatement,andtheFAAgrantsSaidadependency
override.
Unabletoprovideparentdata
StudentscanindicateintheonlineFAFSAthattheybelievetheyhavespecialcircumstancesthatpreventthemfrom
providingparentaldata.Thosewhoindicatethisarethoroughlyinformedaboutwhatwarrantsadependencyoverrideand
whattheresultswillbefortheirapplication.Iftheypersistthroughthosescreensanddonotincludeparentaldata,they
willgetarejectedISIRwiththespecialcircumstancesflagset.Youwillhavetoreviewsuchastudent’ssituationand
determineifheorshe:(1)isunaccompaniedandhomeless,(2)meritsadependencyoverride,(3)mustinsteadprovide
parentaldata,or(4)shouldbepermittedtoborrowonlyunsubsidizedloansbecauseheorshecandocumentthathisor
herparentshaverefusedtosupporthimorherandtoprovidetheirinformationonhisorherFAFSA.
Overridesandprofessionaljudgment
Thephrase“professionaljudgment”islooselyusedforthediscretionFAAsapplytodependencyoverridesandtodata
adjustmentsintheapplication.TheprovisionsforthesetwotypesofchangesareinseparateplacesintheHEA.The
citationfordependencyoverridesisSec.480(d)(1)(I);andiscopiedintotoearlierinthischapterunderthesection
entitled“EntiretextoftheHEAsectiononPJ.
ConflictingInformation
InadditiontoreviewingapplicationanddatamatchinformationfromtheCPS,aschoolmusthaveanadequateinternal
systemtoidentifyconflictinginformation—regardlessofthesourceandregardlessofwhetherthestudentisselectedfor
verification—thatwouldaffectastudent’seligibility,suchasinformationfromtheadmissionsofficeastowhetherthe
studenthasahighschooldiplomaorinformationfromotherofficesregardingacademicprogressandenrollmentstatus.
Theschoolmustresolveallsuchconflictinginformation,exceptwhenthestudentdiesduringtheawardyearorwhenhe
orsheisnolongerenrolledandwillnotre-enroll;ifthestudentlaterenrolls,youareagainobligatedtoresolvethe
conflictinginformation.
Ifyourschoolhasconflictinginformationconcerningastudent’seligibilityoryouhaveanyreasontobelievehisorher
applicationinformationisincorrect,youmustresolvethediscrepanciesbeforedisbursingFSAfundsand,aswith
verification,beforemakinganyPJadjustment.IfyoudiscoverdiscrepanciesafterdisbursingFSAfunds,youmuststill
reconciletheconflictinginformationandtakeappropriateactionunderthespecificprogramrequirements(dependingon
theoutcome,fundsmayhavetobereturned).
SubsequentISIRs
Youaregenerallyrequiredtoreviewallsubsequenttransactionsforastudentfortheentireprocessingyearevenifyou
verifiedanearliertransaction.Anexceptiontothisrequirementisifalatertransactioncomesinafterthestudentisno
longerenrolledatyourinstitution.FirstdetermineiftheEFCortheCflaghaschangedoriftherearenewcommentsor
NSLDSinformationthatimpactseligibilityforaid.Also,checkanyupdatesorcorrectionsorwhethertheverification
trackinggrouphaschanged.IftheEFChasnotchangedandtherearenochangesintheCflag,trackinggroup,orNSLDS
information,noactionisgenerallyrequired.IftheEFCdoeschangebutiteitherdoesn’taffecttheamountandtypeofaid
receivedorthedataelementsthatchangedwerealreadyverified,noactionisrequired.ButiftheEFCchangesandthe
pertinentdataelementswerenotverified,thenyoumustinvestigate.Ofcourse,anytimetheCflagchangesorNSLDS
datahavebeenmodified,youmustresolveanyconflicts.
Discrepanttaxdata
Financialaidadministratorsdonotneedtobetaxexperts,yettherearesomeissuesthatevenalaypersonwithbasictax
lawinformationcanevaluate.Becauseconflictingdataofteninvolvesuchinformation,FAAsmusthaveafundamental
understandingofrelevanttaxissuesthatcanconsiderablyaffecttheneedanalysis.Youareobligatedtoknow(1)
whetherapersonwasrequiredtofileataxreturnand(2)whatthecorrectfilingstatusforapersonshouldbe.TheIRS’s
onlineInteractiveTaxAssistantisausefultoolthatcanhelpwiththeseandotherissuesbywalkingtheuserthrougha
seriesofquestions.
Publication17oftheIRS,YourFederalIncomeTax(2020),isausefulresource.Itaddressespertinenttaxissues:thefiling
Requirementtoidentifyandresolvediscrepantinformation
34CFR668.16(f)
Requirementtoverifyquestionabledata
34CFR668.54(a)(2)“Ifaninstitutionhasreasontobelievethatanapplicant’sFAFSAinformationisinaccurate,it
mustverifytheaccuracyofthatinformation.”
requirements—i.e.,whoisrequiredtofileareturn—areonpages5–9ofthePDFversionandthefilingstatusrequirements
areonpages20–25.
Forexample,anFAAwhonoticesthatadependentstudent’sparents,whoaremarriedandlivetogether,haveeachfiled
asheadofhousehold(whichoffersagreatertaxdeductionthanfilingassingleormarried)mustaskifthatistheright
status.Publication17explainsonpages23–25thecriteriaapersonmustmeettofileasheadofhousehold.Resolutionof
theconflictcouldbetheparentsrefilingandsubmittingacopyoftheamendedreturnorareasonableexplanationofwhy
therereallyisnoconflictunderIRSrules.
Maritalandtaxfil ingstatus
TheISIR/SARcommentcodes361–368indicateapossibleerrorwhenthefilingstatusandmaritalstatusdonotmatch.
Thisisnotconsideredtobeconflictinginformationsubjecttotheresolutionrequirementsof34CFR668.16(f),butwedo
encourageschoolstoreviewtheapplicationformistakeswhenthesecommentsappear.NotethattheFAFSA’suseof
priorprioryeartaxdatacanincreasethenumberofthesecommentcodes.Seethe2022-2023SARCommentCodesand
TextGuideformoreinformation.
Resolutionofconflictinginformation
Youmaynotdisburseaiduntilyouhaveresolvedconflictinginformation,whichyoumustdoforanystudentaslongashe
orsheisatyourschool.Eveniftheconflictconcernsapreviousawardyear,youmuststillinvestigateit.Youhave
resolvedthematterwhenyouhavedeterminedwhichdataarecorrect;thismightsimplybeconfirmingthatanearlier
determinationwastherightone.Ofcourse,youmustdocumentyourfindingsandincludeanexplanationthatjustifies
yourdecision.
TheverificationpageontheFSAAssessmentssitehasguidancetohelpyoureviewyourconflictinginformation
procedures;seeActivity1.
ReferralofFraudCases
Ifyoususpectthatastudent,employee,orotherindividualhasmisreportedinformationoraltereddocumentationto
fraudulentlyobtainfederalfunds,youmustreportyoursuspicionsandprovideanyevidencetotheOfficeofInspector
General(OIG).SeealsoVolume2.
OIGAddressandPhoneNumbers
NationalHotline
InspectorGeneral’sHotlineOfficeofInspectorGeneralU.S.DepartmentofEducation400MarylandAvenue,SW
Washington,DC20202-1500
Fax:(202)245-7047
1-800-MIS-USED(1-800-647-8733)Hours:M,W9–11a.m.T,Th1–3p.m.
Tosubmitacomplaintonlineatanytime,gotohttps://www2.ed.gov/about/offices/list/oig/hotline.htmlandclickonthe
appropriatelink.
RegionalOffices TelephoneNo.
Boston,MA 617-289-0174
NewYork,NY 646-428-3861
Philadelphia,PA 215-656-6900
Pittsburgh,PA 412-395-4528
Atlanta,GA 404-974-9430
PembrokePines,FL 954-450-7346
Chicago,IL 312-730-1630
Dallas,TX 214-661-9530
AnnArbor,MI 734-330-2059
Denver,CO 303-844-0058
Nashville,TN 615-736-2205
KansasCity,MO 816-268-0500
LongBeach,CA 562-980-4141
Phoenix,AZ 602-507-6180
SanJuan,PR 787-773-2746
Washington,DC 202-245-8467
ReportingFraudRings(DistanceEducation)
TheOIGfraudringemailaddresshasbeendisabledandisnolongerinuse.Institutionsnowsubmitfraudringcomplaints
throughtheDepartment’sOIGencryptedcomplaintwebportalattheURLaddresshttps://oighotlineportal.ed.gov.
Becausetheportalisencrypted,institutionsnolongerneedtoencryptsubmitteddocuments.
Inaddition,institutionswillsubmitaFraudRingReportingSpreadsheetthroughtheIG’scompliantprocess.Formore
informationonhowtoreportfraudringsorforacopyoftheFraudRingReportingSpreadsheet,pleasereviewtheAugust
21,2020electronicannouncement.
FSAFeedbackCenter
OIGreferrals
34CFR668.16(g)
ThroughtheFSAFeedbackCenter,students,parents,andotherscansubmittotheDepartmentthefollowingfeedback:
complimentsaboutapositiveexperiencetheyhavehadwiththeDepartment,aschool,orafederalloanservicer;
allegationsofsuspiciousactivitybyaschoolorpersonthatmighthaveviolatedfederallawsregardingfederal
studentaid;or
complaintsabout
applyingforandreceivingfederalloans,grants,andworkstudy;
experienceswithfederalloanservicers,collectionagencies,ortheDepartment;and
schools—theiradministrationoftheFSAprograms,marketingandrecruitmentpractices,ormisrepresentations
offacts.
UnaccompaniedHomelessYouth
Ifastudentdoesnothaveandcannotgetdocumentationfromanyoftheauthoritieslistedunderthe“Unaccompanied
homelessyouth”sectioninChapter2,you(theFAA)mustdetermineifheorsheisanunaccompaniedyouthwhois
homelessorisself-supportingandatriskofbeinghomeless.Anystudentwhoisnotyet24mayqualifyforahomeless
youthdetermination.Itisimportanttomakehomelessyouthdeterminationsonacase-by-casebasis.
Asdefinedlater,astudentisconsideredhomelessifheorshelacksfixed,regular,andadequatehousing.Thisisbroader
thanjustliving“onthestreet.”Itincludesliving
withotherpeopletemporarilybecauseheorshehadnowhereelsetogo;
insubstandardhousing(ifitdoesn’tmeetlocalbuildingcodesortheutilitiesareturnedoff,itisgenerallynot
adequate);
inemergencyortransitionalshelters,forexample,trailersprovidedbytheFederalEmergencyManagementAgency
afterdisasters;
inmotels,campgrounds,cars,parks,abandonedbuildings,busortrainstations,oranypublicorprivateplacenot
designedforhumanstolivein;and
intheschooldormitoryifthestudentwouldotherwisebehomeless.
Astudentlivinginanyofthesesituationsandfleeinganabusiveparentmaybeconsideredhomelesseveniftheparent
wouldprovidesupportandaplacetolive.
ThedocumentationforanFAA’sevaluationofthelivingarrangementsofastudentmustdemonstratethatheorshe
meetsthedefinitionofthiscategoryofindependentstudent.Thedeterminationmaybebasedonadocumentedinterview
withthestudentifthereisnowrittendocumentationavailable.
Whenyouaremakingadeterminationofhomelessness:
Askforhelpfromlocalschooldistricthomelessliaisons,statehomelesseducationcoordinators,theNationalCenter
forHomelessEducationhttps://nche.ed.gov/,ortheNationalAssociationfortheEducationofHomelessChildrenand
Youthwww.naehcy.org.
Useschooldistricthomelessliaisonsandshelterproviderstohelpdevelopandimplementproceduresforverification.
Rememberthatrelevantinformationcancomefromrecognizedthird-partiessuchasprivateorpubliclyfunded
homelesssheltersandserviceproviders,financialaidadministratorsfromanothercollege,collegeaccessprograms
suchasTRIOandGEARUP,collegeorhighschoolcounselors,othermentalhealthprofessionals,socialworkers,
mentors,doctors,andclergy.
Usediscretionwhengatheringinformation,andrespectthestudent’sprivacy.Someinformation,suchasthat
Homelessyouthdeterminations
DCLGEN-15-16
protectedbydoctor-patientprivilege,isconfidential.Also,documentssuchaspoliceorChildProtectiveServices
reportsarenotnecessary.Don’tfocusonwhythestudentishomelessorunaccompaniedbutonwhetherthe
evidenceshowsheorsheisanunaccompaniedhomelessyouthasdefinedinsection725oftheMcKinney-Vento
HomelessAssistanceAct.
Determineeligibilitybasedonthelegaldefinitionsprovided.
RecallthatunaccompaniedhomelessyouthmayusetheaddressofyourschoolastheirownontheFAFSAform.
Forstudentsyoudeterminetobeunaccompaniedhomelessyouthsorunaccompanied,self-supportingyouthsatriskof
beinghomeless,selectthehomelessyouthdeterminationoption(#4)inthedependencyoverridefieldinFAAAccessto
CPSOnlineorEDE.OnthepaperFAFSA,fillintherelevantbubbleinthe“CollegeUseOnly”box(seethegraphicunder
the“DependencyOverrides”sectionearlierinthischapter),includeyourschoolcode,andsign.Forstudentswhohave
alreadyfiledtheirFAFSAformsubmitaFAFSAcorrectionusingtheHomelessYouthDeterminationflagonthe
“dependencydetermination”page(SpecialCircumstancesflagontheISIR).Tocancelahomelessyouthdetermination,
youusethesamemethodaswhencancelingadependencyoverride:changethedependencyoverridevalueto“2—FAA
overridecanceled”inFAAAccessorEDE.
YoumayrelyonadeterminationbyanotherschoolthatastudentwasinthiscategoryonorafterJuly1,2021.Also,a
newdeterminationmustbemadeeachyearforanapplicantwhoishomelessoratriskofbeinghomeless.
Confirmationnotrequired
Youarenotrequiredtoconfirmtheanswerstothehomelessyouthquestionsunlessyouhaveconflictinginformation.A
documentedphonecallwith,orawrittenstatementfrom,oneoftherelevantauthoritiesissufficientverificationwhen
needed.
Inmostcasestheofficialsauthorizedtomakeanunaccompaniedhomelessyouthdetermination(thoselistedunderthe
“Unaccompaniedhomelessyouth”sectioninChapter2)willonlyprovidedocumentationofthatstatusforpersonsthey
aredirectlyprovidingservicesto.However,theremaybeafewcase-by-caseinstanceswheresuchanofficialwillprovide
documentationforapersonwhoisnolongerofficiallyreceivingservices.Also,localliaisonsmaywritesubsequent-year
lettersofverificationforunaccompaniedhomelessyouththroughage23forwhomtheyhavethenecessaryinformation
towritesuchletters.Thisdocumentationisacceptableforverifyingunaccompaniedhomelessness.
Itisnotconflictinginformationifyoudisagreewithanauthority’sdeterminationthatastudentishomeless.Ifyoubelieve
theauthorityisincorrectorabusingtheprocess,accepthisorherdeterminationbutcontactthefollowingoversightparty,
asrelevant,toevaluatetheauthority’sdeterminations:
Schooldistricthomelessliaison:contactthecoordinatorofeducationforhomelesschildrenandyouthprogramsof
thestate’seducationalagency.Youcanfindstatecoordinatorcontactinformationathttps://nche.ed.gov/data/.
Directorofanemergencyshelterortransitionalhousingprogram:youshouldcontactthelocalContinuumofCare
(CoC)administeringtheHUDhomelessassistanceprogram.Gotohttps://www.hudexchange.info/programs/coc/and
clickon“ContactaCoC”ontherightsideofthepage.
Directorofarunawayorhomelessyouthbasiccenterortransitionallivingprogram:contacttheNational
ClearinghouseonFamiliesandYouthbyphoneat301-608-8098orbyemailatncfy@acf.hhs.gov.
McKinney-VentoAct
42U.S.C.11434a
Homelessyouthdefinitions
Atriskofbeinghomeless—whenastudent’shousingmayceasetobefixed,regular,andadequate,for
example,astudentwhoisbeingevictedandhasbeenunabletofindfixed,regular,andadequatehousing
Homeless—lackingfixed,regular,andadequatehousing
Self-supporting—whenastudentpaysforhisorherownlivingexpenses,includingfixed,regular,andadequate
housing
Unaccompanied—whenastudentisnotlivinginthephysicalcustodyofaparentorguardian
Housing
Fixed—stationary,permanent,andnotsubjecttochange
Regular—usedonapredictable,routine,orconsistentbasis
Adequate—sufficientformeetingboththephysicalandpsychologicalneedstypicallymetinthehome