1. FAFSA℠ and Application Processing Update Presented by the Illinois Student Assistance Commission January 2014
Adapted from presentations given by at the U.S. Department of Education’s 2013 FSA Training Conference

2. fafsa.gov

4. Pre-pop Functionality
Issue
A number of entities that interact with students have expressed interest in partnering with Federal Student Aid to further simplify the process of completing the FAFSA.
Solution
Approved partners will offer students the opportunity to pre-populate data collected by that partner (for example, a VITA site) into FAFSA on the Web.

6. New Parent Marital Status
Issue
Information about both legal parents is currently included on a dependent student’s FAFSA only if the parents are married to each other, creating an inequity.
Solution
A new parent marital status option of “Unmarried, but both parents living together” will allow for the collection of data from both legal parents when the parents are not married to each other. Mother and Father labels will change to Parent 1 and Parent 2. Help text will be significantly enhanced to provide guidance for parents who file separate tax returns.

7. Change to Definition of “Married”
Issue
The Supreme Court’s recent decision in United States v. Windsor changed the federal definition of marriage.
Solution
Text that defines marriage will be updated. Mother and Father labels will change to Parent 1 and Parent 2.

8. Parent Updates (paper)

9. Parent Updates (paper)

10. Parent Updates (paper)

11. Student Updates (paper)

15. Conflicting Asset Information
Issue
If a student or parent answers “yes” to the asset threshold question but then reports assets that total less than the APA, it appears on the ISIR as conflicting information for the FAA to resolve.
Solution
An edit will be added to FAFSA on the Web that prevents this scenario from occurring.

17. Tax Filing Status Issue Solution
Inability to identify instances where the student’s or parents’ marital status conflicts with the tax filing status, resulting in the possibility that either too much income or not enough income is being reported on the FAFSA.
Solution
Students and parents will begin reporting their tax filing status on the FAFSA. The system will compare the tax filing status with the marital status to determine where potential discrepancies exist, and message accordingly.

18. Tax Filing Status (paper)

21. IRS Display Flags
Issue Some students and parents are not provided with the option to use the IRS DRT, and FAAs don’t know why. This makes it difficult to determine what documentation to ask for when the student is selected for verification. Solution New IRS Display Flags will be included on the ISIR, as well as in FAA Access. These alpha-character flags will identify the specific reason why a student or parent was not eligible to use the IRS DRT.

22. IRS Display Flags - Student
Blank = IRS DRT not available
A = Dependent student skipped the income and asset questions – IRS DRT was not displayed
B = IRS DRT was displayed to student
C = Tax return status not equal to “Already completed” – IRS DRT was not displayed
D = Marital status date greater than or equal to January 2014 – IRS DRT was not displayed
E = First three digits of SSN are 666 – IRS DRT was not displayed
H = Student amended his/her tax return – IRS DRT was not displayed
J = Student filed a Puerto Rican or Foreign tax return – IRS DRT was not displayed
K = Student is married and tax return filing status is Married Filed Separate Return – IRS DRT was not displayed
L = Student is married and tax return filing status is Head of Household – IRS DRT was not displayed
M = Conflict between the student’s marital status and tax return filing status – IRS DRT was not displayed

23. IRS Display Flags - Parent
Blank = IRS DRT not available
A (if student is dependent) = Dependent student has special circumstances – IRS DRT was not displayed
A (if student is independent) = Independent student skipped the parent questions – IRS DRT was not displayed
B = IRS DRT was displayed to parent
C = Tax return status not equal to “Already completed” – IRS DRT was not displayed
D = Marital status date greater than or equal to January 2014 – IRS DRT was not displayed
E = First three digits of SSN are 666 – IRS DRT was not displayed
F = Non-married parent or both married parents entered all zeroes in SSN – IRS DRT was not displayed
G = Neither married parent entered a valid SSN – IRS DRT was not displayed
H = Parent amended his/her tax return – IRS DRT was not displayed
J = Parent filed a Puerto Rican or Foreign tax return – IRS DRT was not displayed
K = Parents are married and tax return filing status is Married Filed Separate Return – IRS DRT was not displayed
L = Parents are married and tax return filing status is Head of Household – IRS DRT was not displayed
M = Conflict between the parents’ marital status and tax return filing status – IRS DRT was not displayed
N = Parents’ marital status is “Unmarried and both parents living together” – IRS DRT was not displayed

24. Messaging for Corrections
Issue Some students and parents return to FAFSA on the Web to use the IRS DRT, add a school code, or make other corrections, but don’t submit those corrections. Solution Messaging that displays will be modified when a user returns to FAFSA on the Web after transferring data from the IRS. Additionally, an will be sent to students with a saved correction after seven days of inactivity, encouraging them to return to FAFSA on the Web and submit the corrections.

26. Increased Field Lengths
Issue The number of characters allowed in the student and parent financial fields needs to be changed in order to accurately report income and EFC for high cost institutions with high income students. Solution Increase lengths of all income and asset fields and calculated EFC values to allow for more characters.

27. 150% Subsidy Loan Limit Issue Challenges
On July 6, 2012 President Obama signed into Public Law , the elimination of the subsidy on Direct Subsidized Stafford Loans when a “new borrower’s” enrollment exceeds 150% of the published program length (DCL: GEN-13-13).
Challenges
Upon receipt of a Direct Loan actual disbursement with a first disbursement date on or after July 1, 2013, COD must determine if the borrower meets the definition of a “new borrower” to confirm that the 150% subsidy limit applies to the borrower.

28. 150% Subsidy Loan Limit Solution
Identify “new borrowers” starting July 1, 2013 (Phase 1)
Identify when a borrower reaches the 150% threshold and take appropriate actions (Phase 2)
Continuously monitor “new borrowers” enrollment to evaluate future enrollment impacts to students’ 150% limitations (Phase 2)
A “new borrower” is defined as any borrower without an outstanding loan balance on July 1, 2013 or thereafter (Direct Subsidized, direct unsubsidized, PLUS loan [parent PLUS and grad PLUS], FFEL, consolidation and/or converted TEACH).

29. 150% Subsidy Loan Limit
The following NSLDS fields will be added to the ISIR:
These fields will be passed from NSLDS to CPS starting with at the borrower level during pre-screening
A SAR Comment 267 will be triggered when SULA Flag is set to Y
New NSLDS Post-Screening Reason Code 25 value will be added: Subsidized Usage Applies Flag Status Change
(DCL: GEN-13-13)
Added
Value
Subsidized Usage Limit Applies Flag (SULA)
Y/N
Subsidized Loan Eligibility Used (SLEU)
000v000

30. 150% Subsidy Loan Limit SAR Comment 267
There is a limit to the total amount of subsidized federal student loans that you may receive. Please visit Studentaid.gov and select Types of Aid/Loans for more information.
Reason Code 25 will be added to the NSLDS Post-screening for a Subsidized Usage Limit Applies Flag status change.

31. Update NSLDS Fraud Loan Flag
Issue
NSLDS receives records from the Office of Inspector General (OIG) that indicate someone has been convicted of fraudulently obtaining federal loans and is no longer eligible for aid.
Solution
Beginning January 1, 2014:
NSLDS records that receive a flag value of “Y” in the NSLDS Fraud Loan Flag field will no longer have a SAR C Code
Records will now receive Reject Reason 24 and SAR Comment 272
Effective for and

32. Update NSLDS Fraud Loan Flag
SAR Comment 272:
The National Student Loan Data System (NSLDS) indicates that you have one or more student loans that may have been obtained fraudulently. You are not eligible to receive any federal student aid until this issue is resolved.

33. Applicants Younger than 13
Issue
Provide a COPPA-compliant process to allow students younger than 13 to apply for Title IV.
The Computer Online Protection Program Act imposes requirements on operators of websites or online services directed to children under 13 years of age and on operators of websites or online services that have actual knowledge that they are collecting personal information online from a child under 13 years of age.
Solution
Implement a special-handling paper process that:
Will bypass the Date of Birth edit
Will not allow the student to provide an address
Student will receive a paper SAR and the school will receive an ISIR
The Renewal Process will not be available for these applicants

34. Applicants Younger than 13
Correction Process
If corrections are required,
the student/parent can submit them via the paper SAR correction process
The FAA can make corrections, except they cannot provide an address

35. IRS Data Retrieval Tool

36. IRS Data Retrieval Tool
Embedded link within FAFSA on the Web
Applicants must successfully authenticate using information from the filed tax return
Tax return data is available only after the return has posted to the IRS system
Retrieves specific tax return data from an originally filed tax return and displays data on applicants’ browser
Upon request, transfers the displayed data directly in response to specific questions on the FAFSA
IRS Transcript usually not required if data is successfully transferred and not modified by applicant
2014 changes include Language toggle link, display of filing status and “per computer” values 36

37. IRS Transcripts Tax Return transcripts Tax Account transcripts
- Anyone who filed a tax return, including first time filers
Tax Account transcripts
Anyone who filed a tax return/amended return, including first time filers
Record of Account
Anyone who filed a tax return/amended tax return, including first time filers
Verification of Non-filing
Non-filer; letter not a transcript
Information Returns Transcripts (W-2, 1099, 1098, 5498)
Anyone who has income that was reported to the IRS
Tax Return Database View (TRDBV)
Taxpayer who filed an original tax return and can not get a normal transcript through other methods because of duplicate tax return posting 37

38. IRS Transcripts Basic information from tax return
Line by line presentation of tax return 38

39. IRS Transcripts: Availability
Electronically filed Tax Returns
$0 balance/refund returns: Generally available 2-3 weeks after the return has been accepted by IRS
Balance due/partial pay returns: Generally available by end of June or 3-4 weeks after the IRS receives the full/final payment
Paper Tax Returns
$0 balance/refund returns: Generally available 8-11 weeks after the IRS receives the return
Balance due/partial pay returns: Generally available by end of July
Amended Returns
Must be filed as a paper return
Generally available 12 weeks after the IRS receives the amended return
ID Theft Cases
Generally available 8-11 weeks after the IRS receives the duplicate return 39

40. IRS Transcripts – Get Transcript
Get Transcript is a new IRS online service that will provide an electronic PDF version of official IRS Transcripts, launching early in the filing season 2014
Key features:
For individual filers
Delivers all available Transcript types and/or Letters of Non-Filing
Accessible after taxpayers authenticate
Provides immediate display of transcript via PDF file; users can view, print, and save the file
Get Transcript is IRS’s preferred Transcript delivery channel 40

41. Get Transcript
Step 1 (Optional): Choose reason for requesting transcript. Receive suggestion
Step 2: Access available Transcripts and/or Letters of Non-Filing, organized by type 41

42. Other IRS Transcript Options
Transcript Toll free telephone line
Self service; 5-10 calendar day delivery to the address on file
IRS2Go
Self service; mobile app; 5-10 calendar day delivery to the address on file
Available for Android and iOS (Apple) mobile devices
Order a Transcript
Self service; web app; 5-10 calendar day delivery to the address on file
Form 4506-T
Manual process; up to 10 business days to process request and send transcript to the specified address
Third party address identified on Line 5 must be very specific 42

43. Verification

44. Verification
Federal Register Notice, published June 13, 2013, Free Application for Federal Student Aid (FAFSA) Information To Be Verified for the Award Year
Dear Colleague Letter GEN-13-16, Published June 13, 2013, Award Year: FAFSA Information to be Verified and Acceptable Documentation

45. Verification
Retained all items subject to verification in
Added one new item--
Other untaxed income and benefits

46. 2014-15 Verification Groups V1 V2 V3 V4 V5 V6
Verification Tracking Flag
Verification Tracking Group
Verification Description V1
Standard Verification
Record selected because conditions based on statistical analysis error-prone risk model were met V2
Reserved for FSA Use Only
N/A V3
Child Support Paid Verification
Record selected for Child Support Paid criteria only V4
Custom Verification Group
Record selected for Identity criteria and SNAP/Child Support Paid V5
Aggregate Verification Group
Record selected for Identity criteria, “Standard Verification” criteria and SNAP/Child Support Paid V6
Household Resources Verification Group
Record selected for Other untaxed income,
“Standard Verification” and SNAP/Child Support Paid

47. 2014-15 Verification Documentation of untaxed income and benefits
Untaxed income information reported in Question 45 for the student and spouse and Question 94 for the dependent student’s parents
If the verified income does not appear to provide sufficient financial support, the student or parents must explain how the family was supported during the 2013 calendar year

48. Verification
Small number of students will be selected to verify household resources
Provided extensive sample verification text that may be used for verification
Three pages that collect more detailed information on Q45 and Q94
One page that collects optional additional information
Rely on the FAA to make the determination that the family had sufficient resources

49. Verification Data from January 1, 2013 to November 1, 2013
Verification Selection
Indicate of the 5,722,505 selected for verification from the 18,827,577 who applied to date
.9% (51,533) were placed in the V4 – Customized Verification Group
1.45% (82,889) were placed in the V5 – Aggregate Verification Group
Unusual Enrollment History (Not part of Verification)
Indicate of 18,827,577 who applied to date
.93% (175,567) were placed in the UEH Flag #2 category
.14% (26,496) were placed in the UEH Flag #3 category

50. Verification
Issue
FSA continues the process of refining verification selection efforts related to Identity criteria (V4 and V5) based on data analysis, resources and reporting tools.
Enhancements
New Reject Reason 23 will be applied when certain conditions related to identity issues are met
SAR Comment 281 will be generated
Reject 23 can only be overridden by FSA
A system-generated SAR will be sent with SAR Comment 283

51. Verification SAR Comment 281
We cannot process your FAFSA because of issues related to your eligibility. Contact Federal Student Aid at for assistance within 30 days from the date of this letter.
SAR Comment 283
Issues related to your FAFSA have been resolved and processing of your FAFSA may continue.

52. Verification
Issue Provide an efficient method for FAAs to report the verification results for records selected with the V4 and V5 Verification Tracking Groups. Solution FAA Access will be updated to add Identity Verification Results functionality to allow FAAs to enter results individually or by file upload.

53. Verification
FAA Access will be updated to add Identity Verification Results to the home page

54. Verification
The FAA will enter SSN, Name ID, and Verification Results from a dropdown menu on this page
Click “Add SSNs” and enter additional ones

55. Verification Dropdown options will be
Verification completed in person, no issues found
Verification completed remotely, no issues found
Verification attempted, issues found with identity
Verification attempted, issues found with HS completion
No response from applicant or unable to locate

56. Verification FAAs will be able to create and upload a flat file
Coming in April 2014
FAAs will be able to create and upload a flat file

57. Verification
FAAs will get a confirmation page with the results submitted and can print the page for their records

58. Important Dates January 1, 2014 FAFSA on the Web available to students
FAA Access to CPS Online available to financial
aid administrators
January 3, 2014
CPS begins processing

59. Excerpts from ED’s 2014-2015 FAFSA on the Web Preview Presentation
See December 2, Electronic Announcement at ifap.ed.gov for complete set of PowerPoint slides

62. Based on the answers to the questions on this page, the system will determine if the user is eligible to use the IRS Data Retrieval Tool. If they are eligible, the system will provide the option to link to the IRS.

63. Note: The IRS pages are the same for the student and parent
Note: The IRS pages are the same for the student and parent. If the parent and/or student are eligible to use the IRS DRT, they will follow the same process outlined in this slide.

64. Note: If the parent and/or student are eligible to use the IRS DRT, they will follow the same process outlined in this slide. This page is dynamic and the information that displays is variable, depending on whether parent data or student data is displayed. The data is also dynamic; the type of tax form that is filed will determine what type of tax information is displayed.

65. This slide displays the top half of the “Parent Finances 3” page
This slide displays the top half of the “Parent Finances 3” page. Note the “Transferred from the IRS” labels for the data was transferred from the IRS. The bottom half of the “Parent Finances 3” page is continued on the next slide.

66. This slide displays the bottom half of the “Parent Finances 3” page
This slide displays the bottom half of the “Parent Finances 3” page. Again, note the “Transferred from the IRS” labels for the data was transferred from the IRS.

67. Based on the answers to the questions on this page, the system will determine if the user is eligible to use the IRS Data Retrieval Tool. If they are eligible, the system will provide the option to link to the IRS.
Note: The IRS pages are the same for the student and parent. If the parent and/or student are eligible to use the IRS DRT, they will follow the same process outlined in slides

68. This slide shows the messaging that displays when a user indicates they “Will File” their taxes.
In addition, the income estimator is also displayed on this page.

69. The confirmation page includes links to transfer parental data into a new FAFSA for another student.
In addition, some states allow users to transfer FAFSA information into their state’s aid application. The link is included on the confirmation page. The states that allow this transfer are:
New York
New Jersey
Pennsylvania
Vermont
California
Iowa
Mississippi
Minnesota
Indiana

70. MY FAFSA Pages
The My FAFSA page is a navigation tool for the student when accessing the FAFSA on the Web site.
This page will provide the following options and dynamic messaging based on the status of the students FAFSA:
Start FAFSA
File a FAFSA Renewal
Make FAFSA Corrections
View the Student Aid Report
View Correction History
Provide Missing Signatures

72. Resources

73. The red arrows on this page show the helpful resources on the FAFSA on the Web home page. These include:
Link to the StudentAid.gov web site
Link to the Help Page (shown on the next slide)
Link to the State and Federal Deadlines
Link to the Federal School Code search (helps students find their school codes)
Link to the FAFSA Filing Options.
The PDF FAFSAs for and are available on this page.
Link to FAFSA4caster
Announcements

74. This is the FAFSA Help page on FAFSA on the Web
This is the FAFSA Help page on FAFSA on the Web. In addition to the categories of help on this page, a Trending Questions section is available for students to view the most current trending questions or applicable help topics. The Trending Questions section on this page is updated throughout the year to reflect questions the Federal Student Aid Information Center (FSAIC) receives from students and applicants.

75. Demo Sites
FAFSA on the Web and FAA Access to CPS Online are now available
To access sites, go to
Enter:
User Name: eddemo
Password: fafsatest
Notes:
Beginning with the version of the demo system, users will have access to both the current and prior cycle.
The demo system version of the ISIR Analysis Tool will be made available in June 2014 when the production version of the ISIR Analysis Tool is released.

76. FSA Conference Presentations
Available at fsaconferences.ed.gov/
Or link to from ifap.ed.gov home page
FAFSA and Application Processing Sessions
Welcome & Federal Update (General Session 1)
FAFSASM & Application Processing Update (General Session 2)
Verification (General Session 3)
Consumer Information: FSA & IRS Expand Collaboration! (Session 35)
FAFSA on the Web Skip Logic (Session 37)

79. ifap.ed.gov

82. DCL ID: GEN-13-25 Publication Date: December 13, 2013
Subject: Supreme Court Ruling on the Defense of Marriage Act and the Implications for the Title IV Student Financial Assistance Programs
Summary: This letter provides important information on the use of "marriage" and "spouse" in the Title IV Student Financial Assistance Programs and on completion of the Free Application for Federal Student Aid (FAFSA), under the Supreme Court’s decision invalidating Section 3 of the Defense of Marriage Act (United States v. Windsor).

83. Excerpt from DCL ID: GEN-13-25
For purposes of the Title IV HEA programs, a student or a parent is considered married if the student or parent was legally married in any domestic or foreign jurisdiction1 that recognizes the relationship as a valid marriage, regardless of where the couple resides. The Department is applying a “place of celebration” rule and, accordingly, has determined that any legal marriage that is recognized by the jurisdiction in which the marriage was celebrated will be recognized for Title IV HEA program purposes without regard to whether the marriage is between persons of the same sex or opposite sex, and without regard to where the couple resides. This determination applies to both a student and to the parents of a dependent student. It also applies to a student attending an institution located in a jurisdiction that recognizes same-sex marriage and in a jurisdiction (e.g., a state) that does not recognize same-sex marriage. Further, this determination applies only to marriages and does not apply to registered domestic partnerships, civil unions, or similar formal relationships recognized under state law. 2 Finally, this determination is relevant to all questions concerning marriage and marital status on the FAFSA.

84. DCL ID: GEN-13-26 Publication Date: December 13, 2013
Subject: Financial Aid Shopping Sheet
Summary: This letter provides updates, HTML specifications, and the Institutional Metric Data file for the Financial Aid Shopping Sheet

88. QUESTIONS?