Free Application for Federal Student Aid (FAFSA®) Information To Be Verified for the 2016-2017 Award Year

Federal Register, Volume 80 Issue 123 (Friday, June 26, 2015)

Federal Register Volume 80, Number 123 (Friday, June 26, 2015)

Notices

Pages 36783-36788

From the Federal Register Online via the Government Publishing Office www.gpo.gov

FR Doc No: 2015-15782

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DEPARTMENT OF EDUCATION

Free Application for Federal Student Aid (FAFSAsupreg) Information To Be Verified for the 2016-2017 Award Year

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice.

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CFDA Numbers: 84.007, 84.033, 84.038, 84.063, and 84.268.

SUMMARY: For each award year, the Secretary publishes in the Federal Register a notice announcing the FAFSA information that an institution and an applicant may be required to verify, as well as the acceptable documentation for verifying FAFSA information. This is the notice for the 2016-2017 award year.

FOR FURTHER INFORMATION CONTACT: Jacquelyn C. Butler, U.S. Department of Education, 1990 K Street NW., Room 8053, Washington, DC 20006. Telephone: (202) 502-7890.

If you use a telecommunications device for the deaf (TDD) or a text telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-

800-877-8339.

Individuals with disabilities can obtain this document in an accessible format (e.g., braille, large print, audiotape, or compact disc) on request to the program contact person listed under FOR FURTHER INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION: The Secretary will include on the applicant's Institutional Student Information Record (ISIR) flags that will indicate that the applicant has been selected by the Secretary for verification and the Verification Tracking Group that the applicant has been placed in, which in turn indicates which FAFSA information needs to be verified for that applicant and, if appropriate, the applicant's parent(s) or spouse. The Student Aid Report (SAR) provided to the applicant will indicate that the applicant's FAFSA information has been selected for verification and direct the applicant to the institution for further instructions for completing the verification process.

The following chart lists, for the 2016-2017 award year, the FAFSA information that an institution and an applicant and, if appropriate, the applicant's parent(s) or spouse, may be required to verify under 34 CFR 668.56. The chart also lists the acceptable documentation that must be provided under Sec. 668.57 to an institution for that information to be verified.

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FAFSA information Acceptable documentation

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Income information for tax filers...... For income information listed

1. Adjusted Gross Income (AGI)......... under items a through g for

2. U.S. Income Tax Paid................ tax filers--

3. Untaxed Portions of IRA (1) Tax year 2015 information

   Distributions.. that the Secretary has

4. Untaxed Portions of Pensions........ identified as having been

5. IRA Deductions and Payments......... obtained from the Internal

6. Tax Exempt Interest Income.......... Revenue Service (IRS) through

7. Education Credits................... the IRS Data Retrieval Tool

   \1\ and that has not been

   changed after the information

   was obtained from the IRS;

   (2) A transcript \1\ obtained

   from the IRS that lists tax

   account information of the tax

   filer for tax year 2015; or

   (3) A transcript \1\ that was

   obtained at no cost from the

   relevant taxing authority of a

   U.S. territory (Guam, American

   Samoa, the U.S. Virgin

   Islands) or commonwealth

   (Puerto Rico and the Northern

   Mariana Islands), or a foreign

   central government that lists

   tax account information of the

   tax filer for tax year 2015.

   Page 36784

8. Other Untaxed Income............ For tax filers required to

   verify other untaxed income--

   (1) A statement signed by the

   applicant and, if the

   applicant is a dependent

   student, by one of the

   applicant's parents that lists

   sources of other untaxed

   income as provided under

   section 480(b) of the Higher

   Education Act of 1965, as

   amended (HEA), and the amount

   of income from each source for

   tax year 2015; and

   (2) A copy of IRS Form W-2 \2\

   for each source of employment

   income received for tax year

   2015 or an equivalent

   document.\2\

   Income information for tax filers with (1) For a student or the

   special circumstances. parent(s) of a dependent

1. Adjusted Gross Income (AGI)......... student who filed a 2015 joint

2. U.S. Income Tax Paid................ income tax return and whose

3. Untaxed Portions of IRA income is used in the

   Distributions.. calculation of the applicant's

4. Untaxed Portions of Pensions........ expected family contribution

5. IRA Deductions and Payments......... and who at the time the FAFSA

6. Tax Exempt Interest Income.......... was completed was separated,

7. Education Credits................... divorced, widowed, or married

   to someone other than the

   individual included on the

   2015 joint income tax return--

   (a) A transcript \1\ obtained

   from the IRS or other relevant

   taxing authority that lists

   tax account information of the

   tax filer(s) for tax year

   2015; and

   (b) A copy of IRS Form W-2 \2\

   for each source of employment

   income received for tax year

   2015 or an equivalent

   document.\2\

   (2) For an individual who is

   required to file a 2015 IRS

   income tax return and has been

   granted a filing extension by

   the IRS--

   (a) A copy of IRS Form 4868,

   ``Application for Automatic

   Extension of Time to File

   U.S. Individual Income Tax

   Return,'' that the

   individual filed with the

   IRS for tax year 2015;

   (b) If applicable, a copy of

   the IRS's approval of an

   extension beyond the

   automatic six-month

   extension if the individual

   requested an additional

   extension of the filing

   time for tax year 2015;

   (c) A copy of IRS Form W-2

   \2\ for each source of

   employment income received

   for tax year 2015 or an

   equivalent document; \2\

   and

   (d) If self-employed, a

   signed statement certifying

   the amount of AGI and U.S.

   income tax paid for tax

   year 2015.

   Note: An institution may

   require that, after the income

   tax return is filed, an

   individual granted a filing

   extension submit tax

   information using the IRS Data

   Retrieval Tool \1\ or by

   obtaining a transcript \1\

   from the IRS that lists tax

   account information for tax

   year 2015. When an institution

   receives such information, it

   must be used to reverify the

   FAFSA information included on

   the transcript.\1\

   (3) For an individual who was

   the victim of IRS tax-related

   identity theft--

   (a) A Tax Return DataBase

   View (TRDBV) transcript

   obtained from the IRS; and

   (b) A statement signed and

   dated by the tax filer

   indicating that he or she

   was a victim of IRS tax-

   related identity theft and

   that the IRS has been made

   aware of the tax-related

   identity theft.

   Note: Tax filers may inform the

   IRS of the tax-related

   identity theft and obtain a

   TRDBV transcript by calling

   the IRS's Identity Protection

   Specialized Unit (IPSU) at 1-

   800-908-4490. Tax filers who

   cannot obtain a TRDBV

   transcript may instead submit

   another official IRS

   transcript or equivalent

   document provided by the IRS

   if it includes all of the

   income and tax information

   required to be verified.

   Unless the institution has

   reason to suspect the

   authenticity of the TRDBV

   transcript or an equivalent

   document provided by the IRS,

   a signature or stamp or any

   other validation from the IRS

   is not needed.

8. Other Untaxed Income............ (4) For tax filers with special

   circumstances who are required

   to verify other untaxed

   income, a statement signed by

   the applicant and, if the

   applicant is a dependent

   student, by one of the

   applicant's parents, that

   lists the sources of other

   untaxed income as provided

   under section 480(b) of the

   HEA and the amount of income

   from each source for tax year

   2015.

   Page 36785

   Income information for nontax filers... For an individual who has not

1. Income earned from work............. filed and, under IRS or other

2. Other Untaxed Income................ relevant taxing authority

   rules (e.g., the Republic of

   the Marshall Islands, the

   Republic of Palau, the

   Federated States of

   Micronesia, a U.S. territory

   or commonwealth or a foreign

   central government), is not

   required to file a 2015 income

   tax return--

   (1) A signed statement

   certifying--

   (a) That the individual has not

   filed and is not required to

   file an income tax return for

   tax year 2015;

   (b) The sources of income

   earned from work and the

   amount of income from each

   source for tax year 2015;

   (c) For nontax filers required

   to verify other untaxed

   income, the source of income

   as provided under section

   480(b) of the HEA and the

   amount of income from each

   source for tax year 2015; and

   (2) A copy of IRS Form W-2 \2\

   for each source of employment

   income received for tax year

   2015 or an equivalent

   document.\2\

   Note: If an institution has

   reason to believe that the

   signed statement provided by

   the applicant regarding

   whether the applicant has not

   filed and is not required to

   file a 2015 income tax return

   is inaccurate, the institution

   must request that the

   applicant obtain confirmation

   of non-filing from the IRS or

   other relevant taxing

   authority.

   Number of Household Members............ A statement signed by the

   applicant and, if the

   applicant is a dependent

   student, by one of the

   applicant's parents that lists

   the name and age of each

   household member and the

   relationship of that household

   member to the applicant.

   Note: Verification of number of

   household members is not

   required if--

   For a dependent

   student, the household size

   indicated on the ISIR is

   two and the parent is

   single, separated,

   divorced, or widowed, or

   the household size

   indicated on the ISIR is

   three if the parents are

   married or unmarried and

   living together; or

   For an independent

   student, the household size

   indicated on the ISIR is

   one and the applicant is

   single, separated,

   divorced, or widowed, or

   the household size

   indicated on the ISIR is

   two if the applicant is

   married.

   Number in College...................... (1) A statement signed by the

   applicant and, if the

   applicant is a dependent

   student, by one of the

   applicant's parents listing

   the name and age of each

   household member who is or

   will be attending an eligible

   postsecondary educational

   institution as at least a half-

   time student in the 2016-2017

   award year in a program that

   leads to a degree or

   certificate and the name of

   that educational institution.

   (2) If an institution has

   reason to believe that the

   signed statement provided by

   the applicant regarding the

   number of household members

   enrolled in eligible

   postsecondary institutions is

   inaccurate, the institution

   must obtain documentation from

   each institution named by the

   applicant that the household

   member in question is, or will

   be, attending on at least a

   half-time basis unless--

   (a) The applicant's

   institution determines that

   such documentation is not

   available because the

   household member in

   question has not yet

   registered at the

   institution the household

   member plans to attend; or

   (b) The institution has

   documentation indicating

   that the household member

   in question will be

   attending the same

   institution as the

   applicant.

   Note: Verification of the

   number of household members in

   college is not required if the

   number in college indicated on

   the ISIR is ``1.''

   Supplemental Nutrition Assistance (1) A statement signed by the

   Program (SNAP). applicant and, if the

   applicant is a dependent

   student, by one of the

   applicant's parents affirming

   that SNAP benefits were

   received by someone in the

   household during the 2014 and/

   or 2015 calendar year.

   (2) If an institution has

   reason to believe that the

   signed statement provided by

   the applicant regarding the

   receipt of SNAP benefits is

   inaccurate, the applicant must

   provide the institution with

   documentation from the agency

   that issued the SNAP benefits.

   Note: Verification of the

   receipt of SNAP benefits is

   not required if the receipt of

   SNAP benefits is not indicated

   on the applicant's ISIR.

   Child Support Paid..................... (1) A statement signed by the

   applicant and, if the

   applicant is a dependent

   student, by one of the

   applicant's parents, as

   appropriate, certifying--

   (a) The amount of child

   support paid;

   (b) The name of the person

   who paid the child support;

   (c) The name of the person

   to whom child support was

   paid; and

   (d) The names and ages of

   the children for whom child

   support was paid.

   Page 36786

   (2) If the institution has

   reason to believe that the

   information provided in the

   signed statement is

   inaccurate, the institution

   must obtain documentation such

   as--

   (a) A statement from the

   individual receiving the

   child support showing the

   amount received; or

   (b) Documentation that the

   child support payments were

   made (e.g., copies of the

   child support checks, money

   order receipts, or similar

   records of electronic

   payments having been made).

   Note: Verification of child

   support paid is not required

   if child support paid is not

   indicated on the applicant's

   ISIR.

   High School Completion Status.......... (1) High School Diploma

   (a) A copy of the

   applicant's high school

   diploma;

   (b) A copy of the

   applicant's final official

   high school transcript that

   shows the date when the

   diploma was awarded; or

   (c) A copy of the

   ``secondary school leaving

   certificate'' (or other

   similar document) for

   students who completed

   secondary education in a

   foreign country and are

   unable to obtain a copy of

   their high school diploma

   or transcript.

   Note: Institutions that have

   the expertise may evaluate

   foreign secondary school

   credentials to determine their

   equivalence to U.S. high

   school diplomas. Institutions

   may also use a foreign diploma

   evaluation service for this

   purpose.

   (2) Recognized Equivalent of a

   High School Diploma

   (a) General Educational

   Development (GED)

   Certificate or GED

   transcript;

   (b) A State certificate or

   transcript received by a

   student after the student

   has passed a State-

   authorized examination

   (HiSET, TASC, or other

   State-authorized

   examination) that the State

   recognizes as the

   equivalent of a high school

   diploma;

   (c) An academic transcript

   that indicates the student

   successfully completed at

   least a two-year program

   that is acceptable for full

   credit toward a bachelor's

   degree at any participating

   institution; or

   (d) For a person who is

   seeking enrollment in an

   educational program that

   leads to at least an

   associate degree or its

   equivalent and who excelled

   academically in high school

   but did not finish,

   documentation from the high

   school that the student

   excelled academically and

   documentation from the

   postsecondary institution

   that the student has met

   its written policies for

   admitting such students.

   (3) Homeschool

   (a) If the State where the

   student was homeschooled

   requires by law that such

   students obtain a secondary

   school completion

   credential for homeschool

   (other than a high school

   diploma or its recognized

   equivalent), a copy of that

   credential; or

   (b) If State law does not

   require the credential

   noted in 3a), a transcript

   or the equivalent signed by

   the student's parent or

   guardian that lists the

   secondary school courses

   the student completed and

   documents the successful

   completion of a secondary

   school education in a

   homeschool setting.

   Note: In cases where

   documentation of an

   applicant's completion of a

   secondary school education is

   unavailable, e.g., the

   secondary school is closed and

   information is not available

   from another source, such as

   the local school district or a

   State Department of Education,

   or in the case of

   homeschooling, the parent(s)/

   guardian(s) who provided the

   homeschooling is deceased, an

   institution may accept

   alternative documentation to

   verify the applicant's high

   school completion status. An

   institution may not accept a

   student's self-certification

   nor the DD Form 214

   Certificate of Release or

   Discharge From Active Duty as

   alternative documentation.

   When documenting an applicant's

   high school completion status,

   an institution may rely on

   documentation it has already

   collected for purposes other

   than the Title IV verification

   requirements if the

   documentation meets the

   criteria outlined above (e.g.,

   high school transcripts

   maintained in the admissions

   office).

   Verification of high school

   completion status is not

   required if the institution

   successfully verified and

   documented the applicant's

   high school completion status

   for a prior award year.

   Identity/Statement of Educational (1) An applicant must appear in

   Purpose. person and present the

   following documentation to an

   institutionally authorized

   individual to verify the

   applicant's identity--

   Page 36787

   (a) An unexpired valid

   government-issued photo

   identification such as, but

   not limited to, a driver's

   license, non-driver's

   identification card, other

   State-issued

   identification, or

   passport. The institution

   must maintain an annotated

   copy of the unexpired valid

   government-issued photo

   identification that

   includes--

9. The date the

   identification was

   presented; and

   ii. The name of the

   institutionally

   authorized individual who

   reviewed the

   identification; and

   (b) A signed statement using

   the exact language as

   follows, except that the

   student's identification

   number is optional if

   collected elsewhere on the

   same page as the statement:

   Statement of Educational

   Purpose

   I certify that I ________

   (Print Student's Name) am the

   individual signing this

   Statement of Educational

   Purpose and that the Federal

   student financial assistance I

   may receive will only be used

   for educational purposes and

   to pay the cost of attending

   --------------------------for

   2016-2017.

   (Name of Postsecondary

   Educational Institution)

   -------------------------------

   -------

   (Student's Signature)

   -------------------------------

   -------

   (Date)

   -------------------------------

   -------

   (Student's ID Number)

   (2) If an institution

   determines that an applicant

   is unable to appear in person

   to present an unexpired valid

   photo identification and

   execute the Statement of

   Educational Purpose, the

   applicant must provide the

   institution with--

   (a) A copy of an unexpired

   valid government-issued

   photo identification such

   as, but not limited to, a

   driver's license, non-

   driver's identification

   card, other State-issued

   identification, or passport

   that is acknowledged in a

   notary statement or that is

   presented to a notary; and

   (b) An original notarized

   statement signed by the

   applicant using the exact

   language as follows, except

   that the student's

   identification number is

   optional if collected

   elsewhere on the same page

   as the statement:

   Statement of Educational

   Purpose

   I certify that I ________(Print

   Student's Name) am the

   individual signing this

   Statement of Educational

   Purpose and that the Federal

   student financial assistance I

   may receive will only be used

   for educational purposes and

   to pay the cost of attending --

   ------------------------------

   ---for 2016-2017.

   ...............................

   (Name of Postsecondary

   Educational Institution)

   -------------------------------

   -------

   (Student's Signature)

   -------------------------------

   -------

   (Date)

   -------------------------------

   -------

   (Student's ID Number)

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   \1\ An institution may accept a copy of the original 2015 income tax

   return for tax filers who are--

   (a) Consistent with guidance that the Secretary may provide following

   the period after the IRS processes 2015 income tax returns, unable to

   use the IRS Data Retrieval Tool or obtain a transcript from the IRS;

   (b) Unable to obtain a transcript at no cost from the taxing authority

   of a U.S. territory (Guam, American Samoa, the U.S. Virgin Islands) or

   commonwealth (Puerto Rico and the Northern Mariana Islands), or a

   foreign central government that lists tax account information of the

   tax filer for tax year 2015;

   (c) Individuals who filed an amended tax return with the IRS. In

   addition to the copy of the original 2015 income tax return that was

   filed with the IRS, the individual must submit the following documents

   to the institution:

   1. A transcript obtained from the IRS that lists tax account information

   of the tax filer(s) for tax year 2015; and

   2. A signed copy of the IRS Form 1040X that was filed with the IRS.

   The copy of the 2015 income tax return must include the signature of the

   tax filer or one of the filers of a joint income tax return or the

   signed, stamped, typed, or printed name and address of the preparer of

   the income tax return and the preparer's Social Security Number,

   Employer Identification Number, or Preparer Tax Identification Number.

   For a tax filer who filed an income tax return other than an IRS form,

   such as a foreign or Puerto Rican tax form, the institution must use

   the income information (converted to U.S. dollars) from the lines of

   that form that correspond most closely to the income information

   reported on a U.S. income tax return.

   An individual who did not retain a copy of his or her 2015 tax account

   information and that information cannot be located by the IRS or other

   relevant taxing authority, must submit to the institution--

   (a) Copies of all IRS Form W-2s or an equivalent document;

   (b) Documentation from the IRS or other relevant taxing authority that

   indicates the individual's 2015 tax account information cannot be

   located; and

   (c) A signed statement that indicates that the individual did not retain

   a copy of his or her 2015 tax account information.

   Page 36788

   \2\ An individual who is required to submit an IRS Form W-2 or an

   equivalent document but did not maintain his or her copy should

   request a duplicate from the employer who issued the original or from

   the government agency that issued the equivalent document. If the

   individual is unable to obtain a duplicate W-2 or an equivalent

   document in a timely manner, the institution may permit that

   individual to provide a signed statement, in accordance with 34 CFR

   668.57(a)(6), that includes--

   (a) The amount of income earned from work;

   (b) The source of that income; and

   (c) The reason why the IRS Form W-2 and an equivalent document is not

   available in a timely manner.

   Other Sources for Detailed Information

   We provide a more detailed discussion on the verification process in the following resources:

   2016-2017 Application and Verification Guide.

   2016-2017 ISIR Guide.

   2016-2017 SAR Comment Codes and Text.

   2016-2017 COD Technical Reference.

   Program Integrity Information--Questions and Answers on Verification at http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/verification.html.

   These publications are on the Information for Financial Aid Professionals Web site at www.ifap.ed.gov.

   Electronic Access to This Document: The official version of this document is the document published in the Federal Register. Free Internet access to the official edition of the Federal Register and the Code of Federal Regulations is available via the Federal Digital System at: www.gpo.gov/fdsys. At this site you can view this document, as well as all other documents of this Department published in the Federal Register, in text or Adobe Portable Document Format (PDF). To use PDF you must have Adobe Acrobat Reader, which is available free at the site.

   You may also access documents of the Department published in the Federal Register by using the article search feature at: www.federalregister.gov. Specifically, through the advanced search feature at this site, you can limit your search to documents published by the Department.

   Program Authority: 20 U.S.C. 1070a, 1070a-1, 1070b--1070b-4, 1070c--1070c-4, 1070g, 1071--1087-2, 1087a-1087j, and 1087aa-1087ii; 42 U.S.C. 2751-2756b.

   Delegation of Authority: The Secretary of Education has delegated authority to Jamienne S. Studley, Deputy Under Secretary, to perform the functions and duties of the Assistant Secretary for Postsecondary Education.

   Dated: June 23, 2015.

   Jamienne S. Studley,

   Deputy Under Secretary.

   FR Doc. 2015-15782 Filed 6-25-15; 8:45 am

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