Maintained for Historical Purposes

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

2006-2007 Federal Student Aid Handbook in PDF Format

Award Year: 2006-2007

Chapter: --Application and Verification Guide

Section: --Application and Verification Guide

Page Numbers: 1-106

Posted on 02-21-2006

The Handbook is posted each year on the Web, and a print version is later mailed to all schools participating in the Federal Student Aid programs. (See instructions for updating your school's mailing address for publications.) Once the Handbook has been mailed, additional copies may be ordered online from the Department; see Publications for Financial Aid Professionals. Questions about and suggestions for the Handbook can be sent to the Research and Publications Group in the Schools Channel.

Each chapter of the Application and Verification Guide section of the 2006-2007 FSA Handbook is presented as a separate PDF File. Scroll down the page to see all the chapters (listed as attachments) and the hyperlink text.

Award Year: 2006-2007

Section: --Volume 1 - Student Eligibility

Page Numbers: 78

Posted on 04-07-2006

Each Chapter of Volume 1 - Student Eligibility of the 2006-2007 FSA Handbook is presented as a separate PDF File. Look right to see all the chapters (listed as attachments) and the hyperlink text. Requires 4.0 or greater of the free Adobe Acrobat Reader software.

Award Year: 2006-2007

Section: --Volume 2 - School Eligibility and Operations

Page Numbers: 235 pages

Posted on 04-04-2006

Each Chapter of Volume 2 - School Eligibility and Operations of the 2006-2007 FSA Handbook is presented as a separate PDF File. Look right to see all the chapters (listed as attachments) and the hyperlink text. Requires 4.0 or greater of the free Adobe Acrobat Reader software.

Award Year: 2006-2007

Chapter: --Volume 3 - FSA Handbook: Calculating Awards & Packaging

Section: --Volume 3 - Calculating Awards & Packaging

Page Numbers: 1-111

Posted on 04-04-2006

Each Chapter of Volume 3 - Calculating Awards & Packaging of 2006-2007 FSA Handbook is presented as a separate PDF File. Look right to see all the chapters (listed as attachments) and the hyperlink text. Requires 4.0 or greater of the free Adobe Acrobat Reader software.

Award Year: 2006-2007

Chapter: --Volume 4 - FSA Handbook - Processing Aid & Managing FSA Funds

Section: --Volume 4 - Processing Aid & Managing FSA Funds

Page Numbers: 1-62

Posted on 03-08-2006

Each Chapter of Volume 4 - Processing Aid & Managing FSA Funds of the 2006-2007 FSA Handbook is presented as a separate PDF File. Look right to see all the chapters (listed as attachments) and the hyperlink text. Requires 4.0 or greater of the free Adobe Acrobat Reader software.

Award Year: 2006-2007

Chapter: --Volume 5 - FSA Handbook: Overawards, Overpayments, & Withdrawal Calculations

Section: --Volume 5 - Overawards, Overpayments, & Withdrawal Calculations

Page Numbers: 1-160

Posted on 03-23-2006

Each Chapter of Volume 5 - Overawards, Overpayments, & Withdrawal Calculations of 2006-2007 FSA Handbook is presented as a separate PDF File. Look right to see all the chapters (listed as attachments) and the hyperlink text. Requires 4.0 or greater of the free Adobe Acrobat Reader software.

Award Year: 2006-2007

Chapter: --Volume 6 - FSA Handbook: Campus-Based Programs

Section: --Volume 6 - Campus-Based Programs

Page Numbers: 1-133

Posted on 03-02-2006

Each Chapter of Volume 6 - Campus-Based Programs of the 2006-2007 FSA Handbook is presented as a separate Portable Document Format (PDF) File. Look right to see all the chapters (listed as attachments) and the hyperlink text. Requires 4.0 or greater of the free Adobe Acrobat Reader software.

Award Year: 2006-2007

Chapter: --2006-2007 Federal Student Aid Handbook Errata and Updates

Section: --2006-2007 Federal Student Aid Handbook Errata and Updates

Posted on 03-14-2007

Unless otherwise indicated, the errata and updates below are items that were amended after the initial PDF files were posted to the Web and before the Handbook went to print.

For questions about the Handbook contents, you can contact the Schools Publications staff at: fsaschoolspubs@ed.gov.

Volume 1: Student Eligibility

Description

Location

At the bottom of the page "was not home schooled" was changed to "did not complete secondary school in a homeschool setting."

P. 6

In the last full paragraph, where we discuss what to do when you receive no response from the USCIS within 15 days of submitting the G-845S, we changed the text "you should review the file and use your best judgment" by removing "you should."

P. 27

Volume 5: Overawards, Overpayments and Withdrawal Calculations

Description

Location

The sidebar at the very bottom of the page was rewritten to more accurately reflect the overpayment regulations.

P. 2

Volume 6: Managing Campus-Based Programs

Description

Location

New URL for Closed School search page: http://wdcrobcolp01.ed.gov/CFAPPS/FSA/closedschool/searchpage.cfm

P. 71

New URL for Low-Income Teacher Cancellation Benefits search page: https://www.tcli.ed.gov/CBSWebApp/tcli/TCLIPubSchoolSearch.jsp

P. 91

Perkins Cohort Default rate booklet has a new URL: http://ifap.ed.gov/cbpmaterials/0405PerkinsDCROrngBk.html

P. 120

Award Year: 2006-2007

Chapter: --What's New in the 2006-2007 Federal Student Aid Handbook

Section: --What's New in the 2006-2007 Federal Student Aid Handbook

Posted on 03-14-2007

This page lists the items that changed from last year's edition of the FSA Handbook. For questions about the Handbook contents, contact the Schools Publications staff at: fsaschoolspubs@ed.gov.

For information about ordering the Handbook, please see the Publications and How to Order Web page.

Please note that the 2006-07 edition of the FSA Handbook does not include guidance pertaining to the HERA legislation, so some changes below might have been superseded by the HERA.

Application and Verification Guide
Chapter 1 The Application Process

Description

Location

We reworded the second paragraph to make it clearer that the FAFSA is the only application a student must fill out to apply for Title IV aid. We also noted that if you require students to provide you with information other than what appears on the FAFSA in order to apply for institutional or private aid, you must take that additional information into account in your awarding of Title IV aid. Also on this page is a margin note about the new FAFSA on the Web worksheet.

P. AVG-3

The paper renewal FAFSA has been discontinued.

P. AVG-4

Chapter 2 Filling Out the Application

Description

Location

In the margin note we have added a paragraph on how to count rental units as an asset when the family lives in the structure. This derives from Dear Colleague Letter GEN-05-16.

P. AVG-19

We added a paragraph on students applying after the award year has begun and counting as dependents persons other than their children. We also added references to this on page 30 in the instructions on household size.

P. AVG-23

For the question on veteran status, we have added the note that persons who fraudulently entered the service can be considered veterans if they were released under other than “dishonorable” conditions and their entire period of service was not voided.

P. AVG-24

At the bottom of the page is guidance in the example of a student who is receiving support from her boyfriend for her child. We received questions about whether the example meant that the support could be in-kind, if, for instance, the student and boyfriend were living together and he were paying all the bills. The answer is no; the topic sentence for the paragraph provides the correct context by indicating that the discussion is about a student receiving money for her child from any source other than her parents. We rewrote the text to make this clearer.

P. AVG-26

Chapter 3 Expected Family Contribution

Description

Location

The maximum adjusted gross income permitted for qualification for the auto zero EFC has been increased to $16,000.

P. AVG-36

Chapter 4 Verification

Description

Location

Last year Dear Colleague Letter GEN-04-04 was released just as the AVG went to the Web and so was not included. We have added a reference to the DCL in the margin of the page.

P. AVG-79

We noted that the IRS’s TeleFile option is no longer available.

P. AVG-82

There was a misleading example about students receiving an initial aid disbursement, making a change to their application, and then being selected for verification based on the new transaction. The implication of the example was that any aid received in the first disbursement need not be repaid if the student failed to complete verification. While Stafford loans and Federal Work Study fall into that category, other types of aid must be repaid by the student. We clarified the example and the accompanying text in the body of the page and moved the discussion to page 89, where it is better placed. We also reorganized the rest of the section where the above example now appears, “Completing the Process,” at the end of Chapter 4 to make the guidance more logical and readable.

P. AVG-89

Volume 1: Student Eligibility

We have moved several sections to other volumes of the Handbook where they are more relevant. In Chapter 1 the satisfactory academic progress information on transfer students and change of program was moved to or was already contained in Volume 2. In Chapter 6, in the Stafford and PLUS section, “Refusing to originate or certify a loan” and “FFEL lender of last resort” were moved to Volume 4; in the Federal Work Study section, all of the paragraphs except for the first one pertaining to student eligibility were moved to Volume 6.

Chapter 1 School-Determined Requirements

Description

Location

We added a note that schools must include as part of their written policies what the enrollment equivalent is for the work portion of a co-op program.

P. 1-10

Chapter 2 Citizenship

Description

Location

We moved the statement under “Losing eligibility” about checking citizenship status once per year from the end of Ch. 1 to the first page of Ch. 2.

P. 1-17

et al. There have been significant changes in the documentation used by the Department of Homeland Security for immigrants. Accordingly, we have revised Chapter 2. In particular note that the new machine readable immigrant visas (MRIVs) are placed in the passport of the holder and function as temporary evidence of permanent residence. There is also the new travel document for permanent residents, refugees, and asylees. Both of these are qualifying documents for receiving aid. Also note that determinations involving aliens who are permanently residing under color of law are no longer conducted by the Department of Homeland Security, but the pertinent section on the current G-845S does not reflect that.

P. 1-23

Chapter 3 Financial Aid History

Description

Location

We added a margin note explaining that real-time corrections won’t occur when a school is added to the FAFSA. Rather, the application will be sent through the NSLDS match again to ensure that the new school receives the latest financial aid history information.

P. 1-42

Chapter 5 Selective Service System

Description

Location

We added the code RH. See this page for the explanation of the RH status information letter sent by the Selective Service System.

P. 1-59

Volume 2: School Eligibility and Operations
Chapter 9 Record Keeping and Disclosure

Description

Location

We have added information on the information security requirements of the Gramm-Leach-Bliley Act.

P. 2-158 to 2-160

Volume 4: Disbursing & Managing FSA Funds
Chapter 1 MPN & Stafford/PLUS Loan Process

The section on Additional Unsubsidized Stafford Loans was moved to Volume 3, chapter 4.

Chapter 2 Disbursing FSA Funds

We informed schools that if they use an electronic process to provide notifications and obtain authorizations, they must provide individual notice to students on the use of that process.

We expanded our guidance on the application of the E-Sign Act to FSA Transactions.

We added stored-value and prepaid debit cards as a form of electronic funds transfer (EFT), and we add a discussion of the conditions under which schools may use those cards to disburse FSA credit balances.

We added a discussion on using FSA credit balances to pay pass-through charges.

We remind schools that do not award credits as work is completed that they may be prohibited from making second disbursements of Title IV educations loans until they have determined that students are making satisfactory academic progress.

We added a discussion on disbursing FSEOG and Pell funds to students enrolled in correspondence courses.

Chapter 3 Requesting and Managing FSA Funds

We added a discussion on returning FSA funds.

Volume 6: Campus-Based Programs
Chapter 1 Participation, Fiscal Procedures, and Records

Description

Location

Added reallocation guidance and added DCL cite on same

p. 6-4

Updated DCL cite on meeting nonfederal share with state grant and scholarships

p. 6-14

Chapter 4 Perkins Repayment, Forbearance, Deferment, and Cancellation

Description

Location

Updated Child or Family Services cancellation guidance and added DCL cite to Child or Family Services sidebar (GEN 05-15) and added HEA cite

p. 6-91

Updated Perkins cancellation reimbursement DCL cite

p. 6-94

Chapter 5 Perkins Billing, Collection, and Default

Descriptions

Location

Updated DRAP participation procedure guidance, and added Campus-Based call center telephone # to sidebar (they take DRAP calls)

p. 6-117

Added Perkins Cohort Default Rate Guide link

p. 6-118

Revised sidebar heading “In default” to “Loans included in cohort default rate”

p. 6-118