VERIFICATION 2017-2018 COMMENT CODE 399

APPLICATION PROCESSING 2017-2018 No longer printing FAFSA as a color packet Medicaid added as federal means-tested benefit ISIR sent to College will only contain that college’s information. Student’s SAR will still contain all schools listed. State agencies will still receive all schools listed Randomization will be delayed until the 2018-2019 FAFSA

Early FAFSA/PPY: Items Electronic Announcement #4 March 18, 2016 Outlines income related items on FAFSA that will be based on 2015 data Tax filing status, tax return status, type of return, return eligibility, AGI, taxes paid, exemptions, income earned from work, income exclusions, untaxed income. FAFSA items current at time FAFSA completed or for current award year (not PPY data) Dislocated worker, household size, number in college, assets, certain means-tested benefits

Early FAFSA/PPY: Q & A Will FAFSA applicants have an option to use tax year 2016 income and tax information? NO. Students and parents are required to use 2015n tax data. FA Administrators may use PJ to change any of the income or tax items by using 2015 (or any other recent 12 month period) income and tax information, if the FAA determines that there are extenuating circumstances that justify the use of information other than the 2015 tax year ***The fact that the student might be eligible for more aid based upon use of 2016 information is NOT, by itself, sufficient reason for an FAA to make a PJ decision to use 2016 income.

Early FAFSA/PPY: Q & A Will the 2017-2018 FAFSA (either initial or renewal) be pre-populated with information from the applicant’s 2016- 2017 FAFSA since the information should be the same? NO. There are too many instances where such pre-populating would result in incorrect information being included on the 2017-2018 FAFSA (changes in dependency status, changes in marital status, PJ. Institutions should encourage use of the IRS DRT. Use of IRS DRT should help to reduce students selection for verification.

Early FAFSA/PPY: Outreach Materials and Resources for Outreach FAFSA: FinancialAidToolkit.ed.gov/fafsa Resources: FinancialAidToolkit.ed.gov/resources FAFSA Changes: FinancialAidToolkit.ed.gov/fafsa-changes Talking points Table of FAFSA launch dates and tax years Fact sheets for counselors and parents & college students Outreach calendar PowerPoint presentations Information about upcoming webinars

Early FAFSA/PPY: PJ Professional Judgement (GEN-16-03) Encouraged to use PJ as appropriate and properly documented Likely to see an increase in use of PJ Set PJ flag to 1 (EFC adjustment processed) to indicate that the CPS submission was the result of a PJ determination

COMMENT CODE 399 Result of PPY & Early FAFSA A one time situation where two aid years (16-17 & 17-18) will use the same tax information (2015) Comment Code 399 is a new ISIR comment code Comment Code 399 will be used by ED to identify students whose tax info conflicts across aid years. School is responsible for resolving conflicting information.

C Code 399 is generated if: A student completes a 16-17 & 17-18 FAFSA ED determines there is a significant difference in financial information and no excluding event

C Code 399 is NOT generated if: The student is not expected to be Pell Grant-eligible based on 2017-2018 ISIR Between the two FAFSA years there was a change in: The student’s dependency status The student’s or parent’s marital status On either transaction a Professional Judgment flag exists.

What C Code 399 means to you: Added administrative burden Research Outreach Documentation Negative student experience Students may Receive less aid Have to pay back previous disbursements

What C Code 399 means to you: Increased attrition Students may withdraw if funds are held If unable to resolve conflicting information all disbursements for 16/17 & 17/18 are held

ACTIONS SCHOOLS SHOULD TAKE C CODE 399 APPEARS IDENTIFY HOLD RESEARCH RESOLVE UPDATE