Application and Verification Guide 2019–2020 Introduction ................................................................................................. 1 CHANGES FOR 2019–2020 .............................................................................................................................. 1 Chapter 1: The Application Process: FAFSA to ISIR .............................. 3 TYPES OF APPLICATIONS................................................................................................................................ 3 fafsa.gov, myStudentAid mobile app featuring myFAFSA, FAA Access to CPS Online, Paper (PDF) FAFSA, FAFSA on the phone, FSA ID, Renewal FAFSA PROCESSING THE FAFSA ................................................................................................................................. 5 OUTPUT DOCUMENTS: THE SAR AND ISIR ................................................................................................. 6 DEADLINES ......................................................................................................................................................... 7 Chapter 2: Filling Out the FAFSA ............................................................. 9 STEP ONE: GENERAL STUDENT INFORMATION ......................................................................................... 9 Questions 1–31, IRS Data Retrieval Tool STEPS TWO AND FOUR: INCOME AND ASSETS .......................................................................................14 Questions 32–45 (and questions 80–94 for parents), Zero income, Married filing separately, Qualified education benefits, Reporting “take-back” mortgages, Reporting trust funds, Ownership of an asset STEP THREE: DEPENDENCY STATUS ...........................................................................................................22 Questions 47–58, Veteran match, Documentation of foster youth, Who does and does not count as a parent on the FAFSA?, Other sources of support for children and other household members STEP FOUR: PARENTS’ INFORMATION (DEPENDENT STUDENTS ONLY) ............................................28 Questions 59–79, 84 (see Step Two for discussion of questions 80–83, 85–94); Reporting information in cases of death, separation, divorce, and remarriage STEP FIVE: INDEPENDENT STUDENT DATA ..............................................................................................32 Questions 95–102 STEP SIX: SCHOOL INFORMATION ..............................................................................................................33 STEP SEVEN: SIGNATURE(S) .........................................................................................................................33 Questions 104–108, Signatures for electronic applications, Signature requirements chart AVG-i Chapter 3: Expected Family Contribution (EFC) ................................. 37 GENERAL INFORMATION ..............................................................................................................................37 SIMPLIFIED FORMULA ...................................................................................................................................37 AUTOMATIC ZERO EFC ..................................................................................................................................38 DEPARTMENT OF DEFENSE MATCH AND IRAQ AND AFGHANISTAN SERVICE GRANT ..................38 ALTERNATE EFCS .............................................................................................................................................39 THE EFC WORKSHEETS ..................................................................................................................................39 FORMULA A—DEPENDENT STUDENTS .....................................................................................................39 Parents’ contribution, Student’s contribution from income, Student’s contribution from assets, Alternate EFCs for other than nine-month enrollment FORMULA B—INDEPENDENT STUDENT WITHOUT DEPENDENTS OTHER THAN A SPOUSE ...............................................................................................................................43 Contribution from available income, Contribution from assets, Alternate EFCs for other than nine-month enrollment FORMULA C—INDEPENDENT STUDENT WITH DEPENDENTS OTHER THAN A SPOUSE ...............................................................................................................................45 Available income, Contribution from assets, Calculation of student’s EFC, Alternate EFCs for other than nine-month enrollment EFC WORKSHEETS ..........................................................................................................................................49 Formula A, Formula B, Formula C Chapter 4: Verification, Updates, and Corrections ............................... 77 REQUIRED POLICIES AND PROCEDURES ..................................................................................................77 APPLICATIONS AND INFORMATION TO BE VERIFIED .............................................................................78 Verification tracking groups, Reporting results for groups V4 and V5, Verification exclusions DOCUMENTATION ..........................................................................................................................................81 Documenting AGI, taxes paid, and other tax data with the DRT; Using the tax transcript; Using the tax return; Special situations; Using a joint return to figure individual AGI and taxes paid; Household size; Number in college; High school completion; Identity and statement of educational purpose UPDATING INFORMATION ............................................................................................................................90 CORRECTING ERRORS ....................................................................................................................................91 INTERIM DISBURSEMENTS ...........................................................................................................................91 Overpayments from interim disbursements AVG-ii CHANGES IN A SELECTED APPLICANT’S FAFSA ......................................................................................92 Campus-based and DL changes, Pell changes, Selection after disbursement, After documentation is complete HOW TO SUBMIT CORRECTIONS AND UPDATES.....................................................................................93 Using fafsa.gov, Submitting changes via FAA Access to CPS Online or EDE, Using the SAR to make corrections, Adding schools and changing a student’s address DEADLINES AND FAILURE TO SUBMIT DOCUMENTATION ...................................................................94 Campus-Based and DL, Pell Grants, Other considerations, Late disbursements, Verification status codes SUGGESTED VERIFICATION TEXT ................................................................................................................96 2019–2020 Suggested verification text Chapter 5: Special Cases .........................................................................111 PROFESSIONAL JUDGMENT .......................................................................................................................111 Students without parent support DEPENDENCY OVERRIDES ..........................................................................................................................113 CONFLICTING INFORMATION ....................................................................................................................115 Subsequent ISIRs, Discrepant tax data, Resolution of conflicting information REFERRAL OF FRAUD CASES ......................................................................................................................116 Office of Inspector General address and phone numbers UNACCOMPANIED HOMELESS YOUTH ....................................................................................................117 AVG-iii Introduction C i This guide is intended for college financial aid administrators and counselors who help students begin the aid process—filing the Free Application for Federal Student Aid (FAFSA®) form, verifying infor- mation, and making corrections and other changes to the informa- tion reported on the FAFSA. hroughout the Federal Student Aid Handbook we use “college,” “school,” Tand “institution” interchangeably unless a more specific use is given. Similarly, “student,” “applicant,” and “aid recipient” are synonyms. “Parents” in this volume refers to the parents of dependent students, and “you” refers to the primary audience of the Handbook: financial aid administrators at colleges. “We” indicates the U.S. Department of Education (the Department, ED), and “federal student aid” and “Title IV aid” are synonymous terms for the financial aid offered by the Department. We appreciate any comments that you have on the Application and Verification Guide, as well as all the volumes of the FSA Handbook. We revise the text based on questions and feedback from the financial aid com- munity, so please write us at [email protected] about how to improve the Handbook so that it is always clear and informative. CHANGES FOR 2019–2020 We added a paragraph on page 3 introducing a new electronic method for filling out and submitting the application: myFAFSA, which is one feature of the new myStudentAid app that is