Application
and Verification Guide
Reorganization.
We have moved the chapter on the Expected Family Contribution (EFC) from Volume
1: Student Eligibility to this volume, and we have removed the EFC examples
since schools told us that they prefer to use actual data when explaining the
EFC to staff or students.
- Aid administrators who
want to submit application data for a student electronically via EDExpress
will be connected to the FAA Access to CPS Online website.
- The verification tracking
flag on the ISIR has been expanded to 4 characters. As before, the higher
the number, the greater the chance that the student has made significant errors
on the application.
- The EFC calculation will
use the updated tables as published in the Federal Register on May 30, 2003,
with one exception: the state and other tax tables for 03-04 will be used
in the 04-05 calculation by the central processing system.
- At the request of many
financial aid administrators, we have added guidance on their responsibility
to resolve conflicting information. See the end of Chapter 5.
- Because of questions
regarding students who only receive PLUS loan money from the FSA programs,
we have added the statement on p. 3 in the margin note that states that such
students must still meet all the normal eligibility criteria if they do not
file a FAFSA.
- There is an additional
paragraph under the sidebar note The SSN and Pacific Island residents
on p. 10.
- Guidance on use of ISIRs
with dependency overrides that were done at other schools. While this is not
a typical occurrence, there are circumstances in which it can happen. See
the new margin note on p. 25.
- ADDED: Guidance on schools
now being required to use the primary EFC when a secondary EFC is also given,
in cases where the student appears to qualify for the simplified needs calculation.
(First paragraph on p. 38)
- ADDED: explanatory first
paragraph under the section Late disbursements and failure to submit documentation
in the Verification chapter. We have also added a reference to the temporary
waivers and modifications due to the HEROES Act, which concerns students who
have been called up to duty or who reside or work in an officially declared
disaster area. See the margin note on p. 82.
Volume
1: Student Eligibility
Reorganization.
The
EFC, Packaging, and Overpayment chapters have been moved to the Application
& Verification Guide, Volume 3 (Awarding & Packaging), and Volume
5, respectively. A new chapter was added that gives the student eligibility
requirements that are limited to specific FSA programs.
- The name of the agency
formerly known as the Immigration and Naturalization Service (INS) has changed
from the Bureau of Citizenship and Immigration Services (BCIS) to United States
Citizenship and Immigration Services (USCIS). It is a part of the Department
of Homeland Security (DHS), and the data match for citizenship status is referred
to as the DHS match. However, since the match is actually done with the USCIS,
and since it is that agency's field offices with which you may need to interact,
we refer to both the DHS and USCIS in the chapter on citizenship and eligible
noncitizens.
- ADDED: Also in the chapter
on citizenship, we have added a statement that for lawful permanent residents
whose LPR card has expired and who receive an indication of this on a G-845S
response, you should not report the student to the Inspector General if the
only problem is that the student needs to update his card. See 'G-845S response
item 12' in chapter 2.
- MOVED: Parts of the satisfactory
progress discussion that are pertinent to school requirements (rather than
student eligibility) have been moved to Volume 2, Chapter 10.
- ADDED: margin note on
p. 11 that distinguishes between the drug question on the FAFSA and the longer-standing
drug abuse hold that is a consequence of the 1988 Anti-Drug Abuse Act.
- DELETION: The Test of
Adult Basic Education (TABE) was removed from the list of accepted ability-to-benefit
tests but will continue to be valid through September 8, 2004. See p. 5.
- ADDED: margin note pertaining
to the Compact Act and its effect on FSEOG and FWS eligibility for citizens
of the Republic of the Marshall Islands and the Federated States of Micronesia.
See p. 34.
- With the addition of
the chapter on program-specific requirements, the guidance that only pertains
to one of the broad types of program (DL and FFEL, the Campus-Based programs,
Pell) now appears in the program-specific chapter, while guidance that spans
program types would stay in the appropriate chapter. For example, the instruction
on preparatory coursework, because it only applies to (DL and FFEL) Stafford
and PLUS loans, is now in chapter 6, and the instruction on teacher certification
programs, because it applies to Perkins, FWS, and Stafford and PLUS loans,
remains in chapter 1.
Volume 2: School
Eligibility
Reorganization.
Two
major topics have moved to other volumes. The material covered in the former
Chapter 5: Cash Management is now included in Volume 4: Processing
Aid and Managing FSA Funds. The material covered in the former Chapter
6: Return of Title IV Funds will now be included in Volume 5: Overawards,
Overpayments, and Withdrawal Calculations.
Chapter
2, Applying for Participation
- Notes
that when ED approves a school application, we will send an electronic notice
to the president and financial aid officer informing them that the school's
PPA is available to print, review, sign, and return.
Chapter 4,
Program Eligibility
- Clarifies that
your school's Satisfactory Academic Progress policy must define the effect
of noncredit remedial courses (including ESL courses).
Chapter 5,
Updating Application Information
- Clarifies that
a school wishing to add a program of at least 300 clock hours but less than
600 clock hours must apply for and wait for written approval from the Department
before awarding FSA funds to students in the program.
- We have added a chart
summarizing the sections of the E-App you need to update when changes occur.
Chapter 6,
Providing Consumer Information
- Loan Counseling
has been added to the topics covered in this chapter.
- Clarifies that you may
release personally identifiable information on an F, J, or M nonimmigrant
student to the Department of Homeland Security without violating FERPA.
Chapter 7,
Written Agreements Between Schools
- Clarifies that
credits earned through a study abroad or exchange program must be acceptable
toward graduation in the student's program by the home school.
Chapter 9,
Recordkeeping and Disclosure
- Notes disclosures
of student information that may be made under FERPA without disclosure to
or authorization by the student.
- Clarification regarding
differing IRS and FSA definitions of dependence if a student is a dependent
as defined by the IRS: disclosure may be made to either parent, regardless
of which parent claims the student as a dependent.
- Clarifies that schools
are not required to notify a student in advance, or keep a record of the disclosure
when the disclosure of education records is made in compliance with subpoenas
or court orders issued for certain law enforcement purposes.
- Clarification re: when
redisclosure is prohibited and when it is allowed under FERPA.
Chapter 10, Administrative
Capability Topics moved to this chapter: Enrollment Reporting with NSLDS
and the Roster file, Providing borrower information at separation,
Exchanging information about delinquency and default, and much of the
discussion about Satisfactory Academic Progress (from Volume 1).
- We have expanded the
discussion of consistency of information.
- Reminder: schools must
define in their SAP policies the effect of both ESL courses (not part of an
ESL program) and remedial courses on both the qualitative and maximum timeframe
components of their SAP.
- Added the discussion
of Enrollment Status Monitoring and the school's responsibility to complete
the Student Status Confirmation Report. (This information previously appeared
in Volume 8, FFEL and Direct Loans, but the enrollment status reporting
requirement is not limited to schools participating in those loan programs.)
- Clarifies that a school
may not have a policy that excludes courses in which a student has remained
past the drop/add period and earned a grade of 'W' (or its equivalent) from
its calculation of a student's maximum time frame.
- Reminder: Schools must
register for the Transfer Monitoring Process to receive students' financial
aid history.
Chapter 11,
Financial Standards
- New guidance
on the treatment of long-term and other debt in calculating primary reserve,
equity, and net income ratios.
Chapter 12,
Program Integrity Topics moved to this chapter: Quality Assurance Program,
FSA Assessment Tools, ISIR Analysis Tool, and Experimental Sites Initiative.
- Reminder: the criteria
that require schools to submit a A-133 audits changed for fiscal years ending
after December 31, 2003.
- Reminder: a school that
converts from a for-profit to a nonprofit status must report its compliance
with the 90/10 revenue test for the first year after its conversion.
Volume
3: Awarding & Packaging
Reorganization.
This Volume describes award calculations for Pell Grants and Stafford/PLUS loans,
selection of recipients and amounts that can be awarded in the Campus-based
programs, and the rules that must be followed when packaging FSA funds for a
student.
Chapter
1: Academic Calendar This chapter contains materials from the 2003-2004
Volume 2, pgs. 32-42, and Volume 3, pgs. 33-39.
- Deleted language
stating that a school may have different academic years for different "cohorts
of students in programs." Retained language that a school may have different
academic years for different programs, and must use the same academic year
definition for calculating all FSA awards for students in a particular program.
- Added a calendar
graphic that illustrates how to properly count weeks of instructional time.
- Added a graphic
example on combining concurrent and consecutive terms, as well as a graphic
example of treatment of modules.
Chapter 2:
Cost of Attendance. This chapter contains materials from the 2003-2004
Volume 1 Student Eligibility, pgs 1-17 and following, and Volume 3,
Pell Grants, pages 3-21 and following.
- Revised language
describing allowable costs in general, page 3-16.
- Added a note
that backend loan fees for nonfederal loans may only be included in the student's
cost of attendance if they are charged to the borrower during the period of
enrollment for which the loan is made.
- Discussion
of WIA reimbursement contracts expanded to include all FSA programs (sidebar,
page 3-18).
Chapter 3:
Pell Grant Calculations. This chapter contains materials from the 2003-2004
Volume 3, Chapter 2.
- Formula 2 (calculations
for standard-term programs with less than 30 weeks in fall through spring)
and Formula 5 (calculations for correspondence study programs) were moved
to Appendix A and Appendix B, respectively, because they are very rarely used.
- New "Ground
Rules for Pell Calculations" graphic/example added describing how to
handle fractions and rounding in Pell calculations.
- Added graphic
box on enrollment standards for standard terms.
- New graphic
box summary of Formula 1 Pell calculation.
- New examples
of enrollment status change and Formula 1 alternate calculation added.
- Short Term
between two standard terms example added.
- Combined term
example updated and made discrete from "overlapping terms."
- Formula 4
now introduced as covering "Clock hour and non-term credit-hour programs."
- Updated calculation
example of prorating under formula 4.
- Added graphic
box on payments for credit-hour non-term programs and payments for clock-hour
program (formula 4).
- Consolidated
and expanded discussion of summer terms and crossover payment periods
- Added graphic
box on scheduled award limit for summer terms.
- Revised and
expanded graphic examples on combined minisessions in both standard and non-standard
terms
- Added discussion
of re-entry after 180 days.
- Expanded transfer
student example to graphic boxes on both one remaining term and two remaining
terms at new school.
- Appendix A:
Formula 2 calculation example updated.
- Appendix C
covers Formula summaries for all 5 Pell formulas.
Chapter 4:
Stafford/PLUS Loan Periods and Amounts. This chapter is based on 2003-2004
Volume 8, Chapter 2.
- Page 3-58: We have revised the example of Springfield Academy to note that
if the first 900 hours are completed in less than 30 weeks, it will affect
the payment periods for the remainder of the program.
Chapter 5:
Awarding Campus-Based Aid. This chapter is based on the rules for awarding
C-B funds that were presented in 2003-04 Volumes 4-7.
- Chapter 5, sidebar on awarding FWS in advance of study abroad: Deleted "in
an American company abroad" from the list of qualified positions in which
a student may be employed.
Chapter 6:
Packaging. This chapter is based on 2003-2004 Volume 8, Chapter
2.
- Deleted the sentence "If the student is eligible for a Pell Grant,
you cannot certify a loan until the student has applied for a Pell Grant for
the same enrollment period that will be covered by the loan."
- We have expanded the
examples on "Offsetting
the EFC" to show how the aid package is developed.
Volume
4: Disbursing & Managing FSA Funds
Reorganization.
This Volume consolidates information concerning the processing of aid, particularly
the use of the MPN, disbursing aid, and managing FSA funds.
Note that Chapters
2 and 3 may be of particular interest to your business office.
Chapter 1
(MPN & Stafford/PLUS Loan Process) is essentially the same material
that appeared in Volume 8 of the 03-04 FSA Handbook.
- P.
4-1: The discussion of notifications and authorizations has been rewritten
to clarify the requirements and to provide more information on the use of
electronic MPNs, including school and borrower options to require a "wet
signature."
- P. 4-2: New guidance
on the use of power of attorney for MPNs (sidebar).
- P. 4-6: The PLUS MPN
discussion has been moved here, so that it follows the discussion of the Stafford
MPN.
- The discussion of Enrollment
Reporting and the Student Status Confirmation Report that formerly appeared
in the Stafford/PLUS chapter has been moved to Volume 2, Chapter 10, because
the reporting requirement is a general requirement for all schools that participate
in the FSA programs.
Chapter 2
(Disbursing FSA Funds) combines information that formerly appeared in Volume
2, Chapter 5 (Cash Management) and each of the program-specific chapters
of last year's Handbook.
- P. 4-13: Consolidated the discussions of required disbursement notifications
to the student & parent.
- P. 4-20: Added sidebar
on prohibition against escheating of unclaimed FSA funds.
- P. 4-20: Added language
on use of power of attorney for check endorsement or EFT for students engaged
in foreign study.
- P. 4-21: Added sidebar
concerning disbursements to students on a leave of absence.
- P. 4-22: Consolidated
the discussions of timing of disbursements for each of the FSA programs.
- P. 4-23: Added example
of 30-day delayed disbursement in the case of a sudent enrolled in a program
using modules. (The example that appeared in the last sidebar on page 8-62
of the 03-04 FSA Handbook has been removed.)
- The discussion
of "Retaking hours and courses" that appeared on page 3-79 of the
03-04 FSA Handbook (Pell Grants) has been removed.
- The second full paragaph
on page 8-62 of the 03-04 FSA Handbook has been removed. ("When
you report the student's change in enrollment status but expect the student
to resume enrollment within a time period that is less than an academic year...")
- The paragraph discussing
the time limit for returning Stafford/PLUS funds to a lender if a student
does not register for classes has been removed. (Appeared on page 8-66 of
the 03-04 FSA Handbook.)
Chapter 3
(Requesting and Managing FSA Funds) is material that formerly appeared
in Volume 2, Chapter 5 (Cash Management). There have been no substantive
changes to this information.
Volume
5: Overawards, Overpayments, and Withdrawals
Reorganization.
This Volume consolidates information concerning the treatment of FSA funds when
a student has received an overaward or overpayment, or the student has withdrawn
from school.
Chapter 1
(Overawards and Overpayments) Combines information on overawards and overpayments
that formerly appeared in Volumes 2 and 3 of the Handbook. There have been no
substantive changes to this information.
Chapter 2
(Withdrawals and the Return of Title IV Funds) In previous editions of
the Handbook, this chapter appeared as Chapter 6 of Volume 2.
- Explains the treatment of a student selected for verification when the
student has ceased attendance.
- Clarifies the date of determination that a student has ceased attendance
at an institution required to take attendance.
- Discusses the treatment of Title IV credit balances when a student withdraws.
- Expands the discussion of treatment of LEAP program funds in a Return calculation.
- Clarifies when students enrolled in programs measured in credit hours without
academic terms who have breaks in attendance must be considered withdrawals
or placed on leave of absence.
- Expands the discussion of funds that can be included as aid that could have
been disbursed.
- Describes the treatment of inadvertent overpayments.
- Clarifies the requirements for determining a withdrawal date for a student
who earns all “F” grades at institution that is not required to
take attendance.
- Reminder that although a student’s withdrawal date for an unofficial
withdrawal from a clock-hour program may be the midpoint, the hours that the
student actually completed will not vary.
- Explains how to determine the percentage of Title IV aid earned when a student
withdraws from a credit-hour nonterm program.
- Explains that a student who changes programs may be treated as one who withdraws
and reenters or as one merely changing majors.
- Revises the discussion of institutional charges.
- Clarifies the charges that must be entered in Step 5 of the Return calculation
when a student withdraws from a program offered in a nonterm, credit-hour
format.
- Clarifies that the de minimus amounts of grant funds students
are exempted from returning are program specific.
- Reminder that when returning fund by check, you must note your schools DUNS
number and Document Award Number on the check.
- Clarifies when a student enrolled in a program measured in credit hours
without academic terms who has a break in attendance must be treated as withdrawal
or placed on leave of absence.
- Clarifies the costs that must be included in Step 5 of a Return calculation
when a student enrolled in a nonterm, credit-hour format ceases attendance.
Volume 6: Campus-Based Programs
Reorganization.
This Volume describes requirements for managing Federal Work-Study and Perkins
Loan programs at your school, including the rules for creating jobs, collecting
loans, and deferment, cancellation, and default provisions. Note that the eligibility
rules for Campus-Based aid have been moved to Volume 1 -- Student Eligibility
and award limits and the rules for selecting recipients have been moved to Volume
3 -- Awarding & Packaging FSA Funds.
- Updated loan documentation
recordkeeping guidance. When a Perkins loan is assigned to ED due to total
and permanent disability, the school must retain related documentation that
it does not submit until ED approves a final discharge or the loan is paid
in full.
- Clarified guidance on
the limitations on carrying back FSEOG funds for summer use.
- Chapter 3 Clarified
guidance on Perkins aggregate loan limits. All borrowing, including graduate
level borrowing, counts against the undergraduate aggregate limit of $20,000.
Master MPN guidance/FAQs added.
- Chapter 4 For
purposes of Perkins cancellation & deferments, references to the Action Program
have been replaced with the Americorps*VISTA Program.
