(GEN-22-02) Use of FAFSA Data to Administer Federal Programs

Publication Date
January 20, 2022
DCL ID
GEN-22-02
Subject
Use of FAFSA Data to Administer Federal Programs
Summary
This letter reminds institutions of higher education (IHEs) that the U.S. Department of Education (ED) has recently issued designations under Section 483(a)(3)(E) of the Higher Education Act of 1965, as amended (20 U.S.C. 1090(a)(3)(E)), that permit IHEs to use Federal Application for Student Aid (FAFSA®) data to aid in the administration of several Federal benefits programs.

Dear Colleague:

In light of the pandemic, many students are struggling to stay in school and make ends meet, so it is crucial that they are aware of benefits that may be available to them.  The purpose of this letter is to explain how and under what conditions FAFSA data may be used to help inform students of benefits and opportunities that may be available to them. 

The Department is committed to supporting the success of our Nation’s higher education students.  To that end, this letter reminds institutions of higher education (IHEs) that the U.S. Department of Education (ED) has recently issued designations under Section 483(a)(3)(E) of the Higher Education Act of 1965, as amended (20 U.S.C. 1090(a)(3)(E)), that permit IHEs to use Federal Application for Student Aid (FAFSA®) data to aid in the administration of several Federal benefits described below. It is also important to ensure that the data is being used appropriately and in ways that do not violate a student’s privacy rights.  IHEs should limit their FAFSA data use to what is required to inform their student population about these benefits, and, if needed, provide to a student to verify their eligibility for these benefits. 

This represents an opportunity to help students obtain Federal benefits for which they may be eligible. ED encourages IHEs to coordinate with campus stakeholders, such as student organizations, financial aid administrators, faculty and staff advisors, or student life groups, to broadly inform their student population about the range of benefits for which they may be eligible. In doing so, IHEs must follow requirements under the Family Educational Rights and Privacy Act (FERPA) and any other applicable privacy law for the disclosure of a student’s FAFSA data to campus stakeholders or any other third parties.

Below is a list of federal benefit programs that IHEs may provide information about using students' FAFSA data

Child Tax Credit

The American Rescue Plan increased the amount of the 2021 Child Tax Credit to support families with children. Eligible individuals may receive up to $3,600 for each child under age 6 and up to $3,000 for each child ages 6 through 17.

To get money to families quickly, during 2021, the Internal Revenue Service (IRS) paid half of the credit as monthly payments—up to $300 per month for each child under age 6 and up to $250 for each child ages 6 through 17. Eligible families will receive the other half by claiming the child tax credit when filing their 2021 federal income tax return in 2022. Most families can receive the full amount—even families with little to no income. Students are likely eligible for the full amount if they:

  • have children under age 18 who lived with them for more than half of 2021; and

  • are either a single parent making less than $112,500 or are married and the couple makes less than $150,000.

Most parents should have received the tax credit automatically, but if for some reason they did not and they are eligible, then they should receive the full amount of the credit when they file their income tax return.  The credit is fully refundable, meaning that even those who do not owe any taxes can claim the full amount and get a payment back equal to the full amount of the credit.

IHEs may utilize a FAFSA applicant’s email address and other relevant information to notify affected students who may be eligible for the Child Tax Credit. However, institutions should limit FAFSA data use to the data and means directly related to informing students about their potential eligibility for the Child Tax Credit and must follow requirements for the disclosure of FAFSA data to campus stakeholders or any other third parties under the FERPA and any other applicable privacy law.

Recovery Rebate Credit / Economic Impact Payment

Students who did not receive an Economic Impact Payment under the American Rescue Plan, and on whose behalf as a dependent a payment was not made, could be eligible for a $1,400 per-person Recovery Rebate Credit when they file taxes in 2022. To be eligible for the full amount, a student would typically have to be:

  • single and make less than $75,000/year; 

  • the head of a household and make less than $112,500/year; or 

  • married and the couple together makes less than $150,000. 

For more information on eligibility, visit the IRS website on Economic Impact Payments. If students are eligible and haven’t filed a 2020 income tax return, filing a 2020 return will allow the IRS to automatically pay students the first two economic impact payments they may have missed (by filling in the 2020 Recovery Rebate Credit line of the 2020 income tax return). If students are eligible for the third impact payment of up to $1,400 per person and haven’t received them, they should claim it by filing a 2021 income tax return in 2022 and claiming the 2021 Recovery Rebate Credit. Students claimed as a dependent for tax purposes are ineligible for economic impact payments on their own dependent portion of the economic impact payment.

IHEs may utilize a FAFSA applicant’s email address and other relevant information to notify affected students who may be eligible for these benefits. However, institutions should limit FAFSA data use to the data and means directly related to informing students about their potential eligibility for economic impact payments and must follow requirements for the disclosure of FAFSA data to campus stakeholders or any other third parties under the FERPA and any other applicable privacy law.

Supplemental Nutrition Assistance Program (SNAP)

Students may be eligible for the Supplemental Nutrition Assistance Program (SNAP), a Federal program that provides nutrition benefits to supplement the food budget of low-income individuals and families so they can purchase healthy food. Eligible students can use SNAP benefits to buy food for their households, including fruits, vegetables, meat­­, poultry, fish, dairy products, breads, cereals, and other foods such as snack foods and non-alcoholic beverages.

Generally, students attending an IHE half-time or more are not eligible for SNAP unless they meet certain requirements, such as working 20 hours per week or caring for a child. The Consolidated Appropriations Act, 2021 temporarily added two new provisions allowing eligibility for students who have an expected family contribution (EFC) of zero (0) or who are eligible to participate in State or Federally funded work study. These temporary provisions are in effect until 30 days after the end of the Federal COVID-19 public health emergency.

In order to streamline the SNAP application process for students, IHEs may use FAFSA data to verify that students meet these requirements directly with the State SNAP agency, provided IHEs obtain the prior written consent of the student under the FERPA regulations (see 34 CFR 99.30) and any other applicable privacy law to disclose the student’s FAFSA data to the State SNAP agency. IHEs may also use such information to conduct email outreach to potentially eligible students. In many States, students can apply online, in-person, by phone, or by mail. Students can find their local office or State SNAP webpage using the SNAP State Directory of Resources. For more information about student eligibility and other student exemptions, visit the SNAP Students webpage.

Affordable Connectivity Program

The Infrastructure Investment and Jobs Act modified and extended the Emergency Broadband Benefit Program (EBBP) to a longer-term broadband affordability program called the Affordable Connectivity Program. The aim of this $14.2 billion program is to provide eligible low-income households, especially households with students, with access to broadband service at an affordable rate. Students who received a Pell Grant are one category of people who are eligible for the subsidy. Eligible households can receive a benefit of up to $30 off their monthly internet bill (or up to $75 per month if the household resides on qualifying Tribal lands). Students can apply here starting on December 31, 2021. Households that were fully enrolled in the EBBP by December 31st will continue to receive their current monthly benefit until March 1, 2022. Some participating providers are also offering an additional one-time benefit of up to $100 off a connected device (desktop computer, laptop, or tablet) supplied by that participating provider.  Households are required to contribute more than $10 but less than $50 toward that connected device. 

Eligible households must both apply for the program and contact a participating provider to select a service plan.

There are three ways for eligible households to apply:

  1. Contact a participating broadband provider directly to learn about their application process. If an eligible household is unable to apply directly, it may apply by using option 2 or 3 below, and then contacting a participating provider to select a service plan.

  2. Go to ACPbenefit.org to apply online and to find local participating providers. After applying, contact a participating provider to select a service plan.

  3. Call (877) 384-2575 for a mail-in application or print a copy, and return it along with copies of documents showing proof of eligibility to:

    Affordable Connectivity Program Support Center
    P.O. Box 7081
    London, KY 40742

To receive this benefit, a student will need to provide documentation that the student received a Federal Pell Grant for the current award year. The student may provide along with their application a screenshot from the student’s StudentAid.gov profile that displays their receipt of the Federal Pell Grant or other records provided by the IHE to serve as that documentation.

IHEs may use FAFSA data, specifically the receipt of a Federal Pell Grant, along with the FAFSA applicant’s email address, to communicate with students whose households are potentially eligible for the Affordable Connectivity Program benefits about their household’s possible eligibility for such benefits. IHEs should limit FAFSA data use to the data and means directly related to informing their student population about their household’s potential eligibility for Affordable Connectivity Program benefits and must follow requirements for the disclosure of FAFSA data to campus stakeholders or any other third parties under the FERPA and any other applicable privacy law.

Health Insurance Enrollment

The Affordable Care Act (ACA) expanded access to high quality, affordable health insurance through the ACA health insurance marketplaces, such as HealthCare.gov, and Medicaid.  The American Rescue Plan (ARP) temporarily expanded the financial assistance available for individuals buying their own health insurance through the ACA health insurance marketplaces, saving individuals, on average, $50 per month. Four out of five enrollees will be able find a plan for $10 or less per month after the ARP’s expanded financial assistance is applied. Individuals who enroll in health coverage through Medicaid will have access to free or low-cost quality, health care.

  • IHEs may use FAFSA data to communicate with their students about their potential eligibility for quality, affordable health insurance through the ACA health insurance marketplaces and Medicaid. However, institutions should limit FAFSA data use to the data and means directly related to informing their student population about health insurance enrollment and must follow requirements for the disclosure of FAFSA data to campus stakeholders or any other third parties under the FERPA and any other applicable privacy law.

Other Federal Assistance

Below, we also include an illustrative list of federal programs that we encourage IHEs to engage in broad outreach around, but for which IHEs are not at this time permitted to use FAFSA data to engage in those communications. For federal programs that, at this time, have not been designated under the Higher Education Act, the Department still encourages institutions of higher education to broadly inform their campus communities about their availability. However, because they are not been designated, the IHEs are not permitted to use FAFSA data in those communications. Below are illustrative examples of federal assistance that some students may quality for.

Unemployment Insurance

If students have become unemployed through no fault of their own (as determined under State law), and meet other eligibility requirements of State law, they may be eligible for unemployment insurance benefits.

  • Unemployment insurance payments (benefits) are intended to provide temporary financial assistance to unemployed workers who meet the requirements of State law.

  • Each State administers a separate unemployment insurance program within guidelines established by Federal law.

  • Eligibility for unemployment insurance, benefit amounts, and the length of time benefits are available are determined by the State law under which unemployment insurance claims are established.

Students can contact their State Unemployment Insurance agency as soon as possible after becoming unemployed.

Housing Assistance

The American Rescue Plan expanded numerous COVID-19 housing supports for homeowners, renters and landlords who may be struggling to pay their rent or mortgage. We encourage IHEs to inform students about the Homeowners Assistance Fund (HAF) and local Emergency Rental Assistance programs. Links to available resources and applications are available through the Consumer Financial Protection Bureau.

Sincerely,

James Kvaal
Under Secretary, Department of Education

 

Last Modified: 01/20/2022