Free Application for Federal Student Aid (FAFSA) Information To Be Verified for the 2014-2015 Award Year

Federal Register, Volume 78 Issue 114 (Thursday, June 13, 2013)

Federal Register Volume 78, Number 114 (Thursday, June 13, 2013)

Notices

Pages 35613-35617

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

FR Doc No: 2013-14069

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DEPARTMENT OF EDUCATION

Free Application for Federal Student Aid (FAFS

1. Information To Be Verified for the 2014-2015 Award Year

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice.

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CFDA Nos. 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. The notice also specifies what documentation is acceptable for verifying FAFSA information.

For the 2014-2015 award year, the Secretary announces, through this notice, the FAFSA information subject to, and the documentation acceptable for, verification.

FOR FURTHER INFORMATION CONTACT: Jacquelyn C. Butler, U.S. Department of Education, Office of Postsecondary 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 following chart lists, for the 2014-2015 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

Page 35614

verified. The Secretary will include on the applicant's Institutional Student Information Record (ISIR) flags that will indicate 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.

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FAFSA information Acceptable documentation

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Income information for tax For income information listed under items

filers 1 3. a through g for tax filers--

1. Adjusted Gross Income 1) Tax year 2013 information that the

   (AGI). Secretary has identified as having

2. U.S. Income Tax Paid...... been obtained from the Internal

3. Untaxed Portions of IRA Revenue Service (IRS) through the IRS

   Distributions. Data Retrieval Tool \2\ and that has

4. Untaxed Portions of not been changed after the

   Pensions. information was obtained from the

5. IRA Deductions and IRS; or

   Payments. 2) A transcript \2\ obtained from the IRS

6. Tax Exempt Interest Income that lists tax account information of

7. Education Credits......... the tax filer for tax year 2013.

   (34 CFR 668.57(a)).

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

8. Other Untaxed Income...... For tax filers 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--

   1) The sources of other untaxed income

   as provided under section 480(b) of

   the Higher Education Act of 1965, as

   amended (HEA) and the amounts of

   income from each source for tax year

   2013; and

   2) A copy of IRS Form W-2 \4\ for each

   source of employment income received

   for tax year 2013.

   (34 CFR 668.57(a)).

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

   Income information for tax 1) For a student or the parent(s) of a

   filers with special dependent student who filed a 2013

   circumstances 1 3. joint income tax return and whose

1. Adjusted Gross Income income is used in the calculation of

   (AGI). the applicant's expected family

2. U.S. Income Tax Paid...... contribution, who at the time the

3. Untaxed Portions of IRA FAFSA was completed, was separated,

   Distributions. divorced, widowed, or married to

4. Untaxed Portions of someone other than the individual

   Pensions. included on the 2013 joint income tax

5. IRA Deductions and return--

   Payments.

1. A transcript \2\ obtained from the IRS

6. Tax Exempt Interest Income that lists tax account information of

7. Education Credits......... the tax filer(s) for tax year 2013; and

2. A copy of IRS Form W-2 \4\ for each

   source of employment income received for

   tax year 2013.

   2) For an individual who is required

   to file a 2013 IRS income tax return

   and has been granted a filing

   extension by the IRS--

1. 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 2013;

2. 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

   2013;

3. A copy of IRS Form W-2 \4\ for

   each source of employment income

   received for tax year 2013; and

4. If self-employed, a signed

   statement certifying the amount of

   AGI and U.S. income tax paid for

   tax year 2013.

   Note: An institution may require that an

   individual granted a filing extension

   submit tax information using the IRS

   Data Retrieval Tool \2\ or by obtaining

   a transcript \2\ from the IRS that lists

   tax account information for tax year

   2013, after the income tax return is

   filed. When an institution receives such

   information, it must reverify the FAFSA

   information.

8. Other Untaxed Income...... 3) 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 amounts of income from each

   source for tax year 2013.

   (34 CFR 668.57(a)).

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

   Income information for nontax For an individual who has not filed and,

   filers. under IRS rules or other applicable

1. Income earned from work... government agency rules, is not required

2. Other Untaxed Income...... to file a 2013 income tax return--

   1) A signed statement certifying--

1. That the individual has not filed

   and is not required to file an

   income tax return for tax year

   2013;

2. The sources of income earned from

   work and amounts of income from

   each source for tax year 2013; and

3. For nontax filers required to

   verify other untaxed income, the

   source of income as provided under

   section 480(b) of the HEA and the

   amounts of income from each source

   for tax year 2013; and

   2) A copy of IRS Form W-2 \4\ for each

   source of employment income received

   for tax year 2013; or

   3) If an institution has reason to

   believe that the signed statement

   provided by the applicant regarding

   whether that applicant has not filed

   and is not required to file a 2013

   income tax return is inaccurate, the

   institution may request that the

   applicant obtain confirmation from

   the IRS.

   Page 35615

   (34 CFR 668.57(a)).

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

   Number of Household A statement signed by the applicant and,

   Members. 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 reported on the FAFSA

   is two and the parent is single,

   separated, divorced, or widowed; or

   the household size reported is three

   if the parents are married or

   unmarried and living together; or

   For an independent student,

   the household size reported on the

   FAFSA is one and the applicant is

   single, separated, divorced, or

   widowed; or the household size

   reported is two if the applicant is

   married.

   (34 CFR 668.57(b)).

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

   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 2014-2015 award

   year 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

   a statement 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--

1. The institution the applicant is

   attending determines that such a

   statement is not available because

   the household member in question has

   not yet registered at the institution

   he or she plans to attend; or

2. The institution has information

   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'.

   (34 CFR 668.57(c)).

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

   Supplemental 1) A statement signed by the applicant

   Nutrition Assistance Program or, if the applicant is a dependent

   (SNAP-Food Stamps). student, by one of the applicant's

   parents, affirming that SNAP-Food Stamps

   benefits were received by someone in the

   household during the 2012 and/or 2013

   calendar years.

   2) If an institution has reason to

   believe that the signed statement

   provided by the applicant regarding the

   receipt of SNAP-Food Stamps benefits is

   inaccurate, the applicant must provide

   the institution with documentation from

   the agency that issued the SNAP-Food

   Stamps benefits.

   Note: Verification of the receipt of SNAP-

   Food Stamps benefits is not required if

   the receipt of SNAP benefits is not

   indicated on the applicant's ISIR.

   (34 CFR 668.57(d)).

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

   Child Support Paid.. 1) A statement signed by the applicant or

   parent, as appropriate, certifying--

1. The amount of child support paid;

2. The name of the person who paid the

   child support;

3. The name of the person to whom

   child support was paid; and

4. The names of the children for whom

   child support was paid.

   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--

1. A copy of the separation agreement

   or divorce decree that shows the

   amount of child support to be

   provided;

2. A statement from the individual

   receiving the child support showing

   the amount provided; or

3. 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.

   (34 CFR 668.57(d)).

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

   High School 1) High School Diploma

   Completion Status.

1. A copy of the applicant's high

   school diploma;

2. A copy of the applicant's final

   official high school transcript that

   shows the date when the diploma was

   awarded; or

3. 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 the

   services of a foreign diploma evaluation

   service.

   2) Recognized Equivalent of a High School

   Diploma

1. General Educational Development

   (GED) Certificate or GED transcript;

   Page 35616

2. A State certificate received by a

   student after the student has passed

   a State-authorized examination that

   the State recognizes as the

   equivalent of a high school diploma;

3. 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

4. For a person who is seeking

   enrollment in an educational program

   that leads to at least an associate

   degree or its equivalent and has not

   completed high school but has

   excelled academically in high school,

   documentation from the high school

   that the student excelled

   academically in high school and

   documentation from the postsecondary

   institution that the student has met

   the formalized, written policies of

   the postsecondary institution for

   admitting such students.

   3) Homeschool

1. 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.

2. If State law does not require a

   homeschooled student to obtain a

   secondary school completion

   credential for homeschool (other than

   a high school diploma or its

   recognized equivalent), 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.

   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.

   (34 CFR 600.2, 668.32(e)(1) and (e)(4)).

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

   Identity/Statement 1) An applicant must appear in person and

   of Educational Purpose. present the following documentation to

   an institutionally authorized individual

   to verify the applicant's identity:

1. A 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; and

2. 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 ------------------------

   am

   (Print Student's Name)

   the individual signing this Statement of

   Educational Purpose and that the Federal

   student financial assistance I may

   receive will be used only for

   educational purposes and to pay the cost

   of attending ------------------------

   for 2014-2015.

   (Name of Postsecondary Educational

   Institution)

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

   (Student's Signature)

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

   (Date)

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

   (Student's ID Number)

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

   2) For an applicant who appears in

   person, an institution must maintain an

   annotated copy of the valid government-

   issued photo identification that

   includes--

1. The date the identification was

   received; and

2. The name of the institutionally

   authorized individual who received

   the identification.

   3) If an institution determines that an

   applicant is unable to appear in person,

   he or she must provide the institution

   with--

1. A copy of a 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 the

   notary statement; and

2. 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 ------------------------

   am

   (Print Student's Name)

   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 2014-2015.

   (Name of Postsecondary Educational

   Institution)

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

   Page 35617

   (Student's Signature)

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

   (Date)

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

   (Student's ID Number)

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

   (34 CFR 668.57(d)).

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

   \1\ A tax filer who filed an income tax return other than an IRS form,

   such as a foreign or Puerto Rican tax form, 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.

   \2\ An institution may accept a copy of a 2013 income tax return for tax

   filers who are unable to use the IRS Data Retrieval Tool or obtain an

   IRS Tax Return Transcript consistent with guidance that the Secretary

   may provide (e.g., victims of identity theft, individuals who filed an

   amended tax return, individuals who filed an income tax return other

   than an IRS form or individuals with authentication issues with the

   IRS). The copy must include the signature of the tax filer or of 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.

   \3\ If a tax filer did not retain a copy of his or her 2013 tax account

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

   government of a U.S. territory or commonwealth or a foreign central

   government, the institution must accept--

1. A copy of IRS Form W-2 (see footnote 4), for each source of

   employment income received for tax year 2013 and, if self-employed, a

   signed statement certifying the amount of AGI and taxes paid for that

   self-employment for tax year 2013; or

2. A copy of a wage and tax statement or a signed statement by an

   individual who has filed an income tax return with a government of a

   U.S. territory or commonwealth or a foreign central government

   certifying the amount of AGI and taxes paid for tax year 2013.

   \4\ If an individual who is required to submit an IRS Form W-2 is unable

   to obtain one 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--

1. The amount of income earned from work;

2. The source of that income; and

3. The reason why the IRS Form W-2 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:

   2014-2015 Application and Verification Guide.

   2014-2015 ISIR Guide.

   2014-2015 SAR Comment Codes and Text.

   2014-2015 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 Brenda Dann-Messier, Assistant Secretary for Vocational and Adult Education, to perform the functions and duties of the Assistant Secretary for Postsecondary Education.

   Dated: June 7, 2013.

   Brenda Dann-Messier,

   Assistant Secretary for Vocational and Adult Education, delegated the authority to perform the functions and duties of the Assistant Secretary for Postsecondary Education.

   FR Doc. 2013-14069 Filed 6-12-13; 8:45 am

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