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Award Year: 2006-2007
Chapter: --What's
New in the 2006-2007 Federal Student Aid Handbook
Section: --What's
New in the 2006-2007 Federal Student Aid Handbook
Posted on 03-14-2007
![handbook cover](https://webarchive.library.unt.edu/eot2008/20090507191943im_/http://www.ifap.ed.gov/images/library/0607handbookcover.jpg) |
What's
New in the 2006-2007 Federal Student Aid Handbook
This page lists
the items that changed from last year's edition of the FSA Handbook.
For questions about the Handbook contents, contact the Schools Publications
staff at: fsaschoolspubs@ed.gov
For information
about ordering the Handbook, please see the Publications
and How to Order Web page.
Please
note that the 2006-07 edition of the FSA Handbook does not include
guidance pertaining to the HERA legislation, so some changes below
might have been superseded by the HERA.
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Application
and Verification Guide
Chapter
1 The Application Process
P. AVG-3 We reworded the second paragraph to make it clearer
that the FAFSA is the only application a student must fill out to apply
for Title IV aid. We also noted that if you require students to provide
you with information other than what appears on the FAFSA in order to
apply for institutional or private aid, you must take that additional
information into account in your awarding of Title IV aid. Also on this
page is a margin note about the new FAFSA on the Web worksheet.
P. AVG-4 The paper renewal FAFSA has been discontinued.
Chapter 2 Filling Out the Application
P. AVG-19 In the margin note we have added a paragraph on
how to count rental units as an asset when the family lives in the structure.
This derives from Dear Colleague Letter GEN-05-16.
P. AVG-23 We added a paragraph on students applying after
the award year has begun and counting as dependents persons other than
their children. We also added references to this on page 30 in the instructions
on household size.
P. AVG-24 For the question on veteran status, we have added
the note that persons who fraudulently entered the service can be considered
veterans if they were released under other than “dishonorable” conditions
and their entire period of service was not voided.
P. AVG-26 At the bottom of the page is guidance in the example
of a student who is receiving support from her boyfriend for her child.
We received questions about whether the example meant that the support
could be in-kind, if, for instance, the student and boyfriend were living
together and he were paying all the bills. The answer is no; the topic
sentence for the paragraph provides the correct context by indicating
that the discussion is about a student receiving money for her child from
any source other than her parents. We rewrote the text to make this clearer.
Chapter 3 Expected Family Contribution
P. AVG-36 The maximum adjusted gross income permitted for
qualification for the auto zero EFC has been increased to $16,000.
Chapter 4 Verification
P. AVG-79 Last year Dear Colleague Letter GEN-04-04 was released
just as the AVG went to the Web and so was not included. We have added
a reference to the DCL in the margin of the page.
P. AVG-82 We noted that the IRS’s TeleFile option is no
longer available.
P. AVG-89 There was a misleading example about students receiving
an initial aid disbursement, making a change to their application, and
then being selected for verification based on the new transaction. The
implication of the example was that any aid received in the first disbursement
need not be repaid if the student failed to complete verification. While
Stafford loans and Federal Work Study fall into that category, other types
of aid must be repaid by the student. We clarified the example and the
accompanying text in the body of the page and moved the discussion to
page 89, where it is better placed. We also reorganized the rest of the
section where the above example now appears, “Completing the Process,”
at the end of Chapter 4 to make the guidance more logical and readable.
Volume
1: Student Eligibility
We
have moved several sections to other volumes of the Handbook where they
are more relevant. In Chapter 1 the satisfactory academic progress information
on transfer students and change of program was moved to or was already
contained in Volume 2. In Chapter 6, in the Stafford and PLUS section,
“Refusing to originate or certify a loan” and “FFEL lender of last
resort” were moved to Volume 4; in the Federal Work Study section, all
of the paragraphs except for the first one pertaining to student eligibility
were moved to Volume 6.
Chapter 1 School-Determined Requirements
P. 1-10 We added a note that schools must include as part
of their written policies what the enrollment equivalent is for the work
portion of a co-op program.
Chapter 2 Citizenship
P. 1-17 We moved the statement under “Losing eligibility”
about checking citizenship status once per year from the end of Ch. 1
to the first page of Ch. 2.
P. 1-23 et al. There have been significant changes in the
documentation used by the Department of Homeland Security for immigrants.
Accordingly, we have revised Chapter 2. In particular note that the new
machine readable immigrant visas (MRIVs) are placed in the passport of
the holder and function as temporary evidence of permanent residence.
There is also the new travel document for permanent residents, refugees,
and asylees. Both of these are qualifying documents for receiving aid.
Also note that determinations involving aliens who are permanently residing
under color of law are no longer conducted by the Department of Homeland
Security, but the pertinent section on the current G-845S does not reflect
that.
Chapter 3 Financial Aid History
P. 1-42 We added a margin note explaining that real-time corrections
won’t occur when a school is added to the FAFSA. Rather, the application
will be sent through the NSLDS match again to ensure that the new school
receives the latest financial aid history information.
Chapter 5 Selective Service System
P. 1-59 We added the code RH. See this page for the explanation
of the RH status information letter sent by the Selective Service System.
Volume
2: School Eligibility and Operations
Chapter
9 Record Keeping and Disclosure
P. 2-158 to 2-160 We have added information on the information
security requirements of the Gramm-Leach-Bliley Act.
Volume
4: Disbursing & Managing FSA Funds
Chapter
1 MPN & Stafford/PLUS Loan Process
The section on Additional Unsubsidized Stafford Loans was moved to Volume
3, chapter 4.
Chapter 2 Disbursing FSA Funds
We informed schools that if they use an electronic process to provide
notifications and obtain authorizations, they must provide individual
notice to students on the use of that process.
We expanded our guidance on the application of the E-Sign Act to FSA Transactions.
We added stored-value and prepaid debit cards as a form of electronic
funds transfer (EFT), and we add a discussion of the conditions under
which schools may use those cards to disburse FSA credit balances.
We added a discussion on using FSA credit balances to pay pass-through
charges.
We remind schools that do not award credits as work is completed that
they may be prohibited from making second disbursements of Title IV educations
loans until they have determined that students are making satisfactory
academic progress.
We added a discussion on disbursing FSEOG and Pell funds to students enrolled
in correspondence courses.
Chapter 3 Requesting and Managing FSA Funds
We added a discussion on returning FSA funds.
Volume
6: Campus-Based Programs
Chapter
1 Participation, Fiscal Procedures, and Records
p. 6-4 Added reallocation guidance and added DCL cite on same
p. 6-14 Updated DCL cite on meeting nonfederal share with
state grant and scholarships
Chapter 4 Perkins Repayment, Forbearance, Deferment,
and Cancellation
p. 6-91 Updated Child or Family Services cancellation guidance
and added DCL cite to Child or Family Services sidebar (GEN 05-15) and
added HEA cite
p. 6-94 Updated Perkins cancellation reimbursement DCL cite
Chapter 5 Perkins Billing, Collection, and Default
p. 6-117 Updated DRAP participation procedure guidance, and
added Campus-Based call center telephone # to sidebar (they take DRAP
calls)
p. 6-118 Added Perkins Cohort Default Rate Guide link
p. 6-118 Revised sidebar heading “In default” to “Loans
included in cohort default rate”
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