Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

Student Eligibility and Financial Need - Introduction

AwardYear: 1996-1997
EnterChapterNo: 2
EnterChapterTitle: Student Eligibility and Financial Need
SectionNumber:
SectionTitle: Introduction
PageNumbers: 1-2


This chapter of The Federal Student Financial Aid Handbook
describes the student eligibility requirements that affect the Student
Financial Assistance (SFA) Programs. The calculation of financial
need, a key determinant of student eligibility, is examined here, as
are the details that pertain to documenting citizenship status and
other eligibility criteria. Documentation necessary for proving
citizenship status, a list of Student Aid Report (SAR) comments for
matches and hold files, and the Selective Service's Status Information
Letters appear in the appendices.

RECENT CHANGES

Relative to prior years, for the 1996-97 award year there have been
only a few major changes relating to student eligibility. Within this
chapter, noteworthy changes for 1996-97 have been flagged with
margin notes. Following is a synopsis of these changes:

- New ability-to-benefit regulations governing the approval and
administration of tests used to determine a student's eligibility are
in effect.

- Application and reporting deadlines have changed.

- The National Student Loan Data System (NSLDS) Information
Summary on the SAR has been revised to provide more
information--a more comprehensive history--about the student's
prior SFA funds. This summary may also be used as a financial
aid transcript.

- A student who applies electronically will now receive a "SAR
Information Acknowledgement" rather than a regular two-part
SAR. The SAR Information Acknowledgement contains the same
type of information as that which appears on the regular two-part
SAR. Schools where students apply electronically no longer must
provide students with Institutional Student Information Records
(ISIRs) for review. Students who apply electronically must make
corrections electronically or must use two-part SARs, which may
be requested from the FAFSA processor.

- There is a change in the definition of "veteran" used to determine
dependency status for SFA purposes.

- A new citizenship match--in addition to the INS citizenship
match--is now being performed by the Social Security
Administration (SSA).

- The Overpayment Hold File is no longer in use. (Information in
these files has been incorporated in the NSLDS.)

The FAFSA has been modified minimally, as has the SAR.

- The School Use Box on the SAR has been revised: Schools no
longer may report a recalculated EFC when professional
judgment adjustments are made to a student's data.

- Verification Worksheets are no longer mailed with SARs. Schools
may use their own worksheets, may customize and print
EDExpress worksheets, or may use the worksheet printed in
Action Letter #6.

- Certification statements now appear on the FAFSA. SARs no
longer include these statements unless the SARs are flagged with
Reject Comment 16. Because students must sign the certification
statements on the FAFSA, schools no longer must separately
collect and keep these statements.

- The paper Pell Grant Payment Voucher (Part 3 of the SAR) has
been eliminated. To report Pell Grant payment information in
1996-97, all institutions must use the Electronic Data Exchange
(EDE), the Recipient Data Exchange, or the Floppy Disk Data
Exchange.

- An exception to the Secondary Confirmation requirement is in
effect.