(GENERAL-24-56) 2024-25 FAFSA: Update on Processing Paper FAFSA Forms, Implementing School-Initiated Corrections, and Temporary Changes to Process for Reporting Disbursements to Provide Institutional Flexibility (Updated July 30, 2024)

Author
Federal Student Aid
Electronic Announcement ID
GENERAL-24-56
Subject
2024-25 FAFSA: Update on Processing Paper FAFSA Forms, Implementing School-Initiated Corrections, and Temporary Changes to Process for Reporting Disbursements to Provide Institutional Flexibility (Updated July 30, 2024)

Note

Update on July 30, 2024: The Department is revising this announcement to reflect the additional extension to the deadline for reporting disbursements for the 2024-25 award year, as announced in the July 30, 2024 electronic announcement (GENERAL-24-94). On May 10, 2024, the Department originally announced that institutions would not be required to report disbursements made for the 2024-25 award year until 30 days after the date that school corrections become available. On May 22, we clarified that this flexibility was extended until 30 days after batch corrections functionality via the Electronic Data Exchange (EDE) becomes available. This flexibility now extends to November 30, 2024, or 15 calendar days after the disbursement is made, whichever is later.

Update on July 11, 2024: The Department previously announced that we are in the final stages of testing for processing paper applications (approximately 0.4% of all applications). We have identified issues in testing that have delayed the launch of this functionality. The Department will continue to provide regular updates, and we thank you for your patience as we work to balance the demand for timely delivery with a successful user experience.

Our estimates continue to indicate that approximately half of these applicants have also applied online and the Department has already processed their FAFSA forms. We estimate that approximately 20% of the remaining forms will require additional information before they can be processed, and we are returning these forms.

Update on July 9, 2024: A technical fix has been implemented to resolve the issue preventing the Primary Destination Point Administrator (PDPA) role from submitting corrections for their institution. The PDPA may now log in to the FPP to submit corrections.

Update on July 3, 2024: The ability for institutions to make and submit corrections to FAFSA records via the FAFSA Partner Portal (FPP) has been implemented.

Some users have reported error messaging noting that their session was terminated when attempting to submit corrections in the FPP. After further investigation, the Department believes this error is limited to the Primary Destination Point Administrator (PDPA) role. Other user roles may still log in to the FPP to submit corrections for their institution, or the PDPA may wait until the issue is resolved next week to submit corrections. Additional information about this error can be found on the Issue Alerts page.

Update on June 28, 2024: The Department previously announced, on May 10, 2024, that we would begin processing paper applications and that FAFSA Partner Portal (FPP) functionality would be available for institutions to submit corrections by the end of June. The Department is in final testing for these functionalities and is providing a timing update.

We anticipate that we will be releasing FPP in the next few days, barring critical developments from the final stages of testing.

While we believe it will be at least a week before we begin full processing of paper applications, the Department has begun assessing these forms and returning those applications that are incomplete or require additional information. The Department has received approximately 47,000 paper applications (approximately 0.4% of total applications received to-date), but initial estimates are showing approximately half of these applicants have also applied online and the Department has processed their FAFSAs.

The Department will issue Blue Notes to this EA with any updates on these functions, including when they have been fully deployed. We are working diligently to ensure these functions are released as quickly as possible.

Update on May 22, 2024: Previously, on May 10, 2024, the Department announced that institutions will not be required to report disbursements made for the 2024-25 award year until 30 days after the date that school corrections become available. Today, May 22, 2024, the Department further clarifies that this flexibility extends until 30 days after batch corrections functionality via the Electronic Data Exchange (EDE) becomes available to schools and has updated the “Extension of Deadline for Reporting Disbursements to the COD System” accordingly.

Update on May 15, 2024: We corrected the EA ID number to GENERAL-24-56. No changes were made to the content.

This Electronic Announcement provides an update on the Department’s processing of 2024-25 paper FAFSA forms and implementation of school-initiated corrections. Historically, institutional corrections impact a small percentage of applicants, but the numbers vary by institution. As a reminder, the Department previously announced we will be significantly reducing verification requirements focusing on avoiding identity fraud. To give schools more options until school-initiated corrections are available, the Department is also announcing changes to the process for reporting disbursement information to the Common Origination and Disbursement (COD) System for the 2024-25 award year, including the availability of an initial Current Funding Level (CFL) for the Pell Grant Program. These temporary changes ensure institutions have as much flexibility as possible to package and award aid to students.

Update on Processing Paper FAFSA Forms and the Implementation of School-Initiated Corrections via the FAFSA Partner Portal

We are providing updated timelines to help institutions continue to package and originate aid for students.

  • With the launch of the new FAFSA, the Department strongly encouraged students and contributors to complete the online form, rather than submitting and sending paper forms in the mail. Currently, fewer than one-half of one percent of 2024-25 FAFSA submissions are paper FAFSA forms. Some of these students may have also filed an online FAFSA, which the Department is processing within 1 to 3 days, and which would supersede paper forms. The Department recommends that all students, even those who have submitted a paper FAFSA, complete the online FAFSA if possible unless the student filed a paper FAFSA to meet an aid or scholarship deadline prior to the availability of online processing. Filing an online FAFSA will negate the paper filing date.

  • The Department will begin processing 2024-25 paper FAFSA forms – including those submitted by confined or incarcerated students – by the end of June. Once processed, students who submitted a paper FAFSA form and provided a valid email address will receive an email telling them that they can access their FAFSA Submission Summary on StudentAid.gov. Students who did not provide a valid email address, and incarcerated students in general, will receive the results of their form’s processing via a paper FAFSA Submission Summary sent by postal mail within 7-10 days after processing. With consideration to internet access limitations for incarcerated students, when possible, all students, regardless of application method, are encouraged to create an account username and password (FSA ID) to view the real-time status of their application on StudentAid.gov.

  • Institutions will be able to submit corrections via the FAFSA Partner Portal (FPP) by the end of June. The FPP will allow institutions to submit corrections electronically by entering the data manually in the FAFSA Partner Portal. Batch institutional corrections via the Electronic Data Exchange (EDE) will be available in the weeks following FPP corrections.

Temporary Changes to Process for Reporting Disbursements of Pell Grant Funds Prior to Corrected ISIRs

The Department recognizes that prior to the implementation of school-initiated corrections in FPP, schools will not have an official Institutional Student Information Record (ISIR) to award and disburse Title IV funds to students who require updates that can only be done through institutional corrections. Therefore, the Department is taking several actions to allow schools to estimate changes to Title IV award amounts that would result from institutional corrections and make disbursements of Title IV aid on the basis of these estimates.

Initial Current Funding Level for the Pell Grant Program

Schools currently receive Federal Pell Grant funding based on student-level Net Accepted and Posted Disbursement (NAPD) data. To provide some additional support to schools, for the 2024-25 award year, schools that receive funds under the Advance Funded method will receive an initial Current Funding Level (CFL) for the Pell Grant Program to assist with summer disbursements. Similar to when this practice was in place historically, the CFL provided will depend on several factors including school eligibility, Advance Funded status, and a percentage of prior year NAPD for the summer term. Once funding is assigned, schools are responsible for determining immediate need for eligible students and drawing only that portion of funds.

Schools will continue to receive an initial CFL for the Direct Loan Program, and that process is not expected to change. Schools that receive funds under the heightened cash monitoring 1 (HCM1) or 2 (HCM2) funding methods or the reimbursement funding method do not qualify for an initial CFL for any Title IV program.

As always, under 34 CFR 668.162(b)(3) schools that draw down Title IV funds prior to disbursing funds to students must make disbursements no later than three business days following receipt of the funds.

Additional information on these changes will be provided in a forthcoming operational announcement.

Extension of Deadline for Reporting Disbursements to the COD System (Updated July 30, 2024)

The Department is also providing relief to institutions by extending the deadline for reporting Direct Loan, Pell Grant, and TEACH Grant program disbursements to the COD System. In recent years, institutions were required to report disbursements no later than 15 calendar days after the institution makes a disbursement. Given the deferral of batch corrections to the 2025-26 FAFSA cycle, the delay in paper corrections functionality, and that schools may need additional time to process institutional corrections in FPP, institutions will not be required to report disbursements made for the 2024-25 award year until November 30 or 15 calendar days after the disbursement is made, whichever is later.

Awarding and Disbursing Title IV Funds Based on Estimated SAI Amounts

Some schools have the ability to process corrections to ISIRs in their internal system and produce an estimated Student Aid Index (SAI). The Department encourages schools to use these capabilities to provide estimated awards to students as soon as possible to help them make their final enrollment choices for the 2024-25 academic year. The Department views providing such estimated awards with acknowledgements that amounts may change once the Department processes an official ISIR as consistent with requirements to provide accurate student financial assistance information under 34 CFR 668.42.

Some schools may also wish to disburse Title IV funds based on an estimated SAI that has been generated by their internal system. In order to ensure that students receive Title IV, HEA funds in a timely manner for payment periods that begin prior to the date that school-initiated corrections become available, the Department will allow a school that receives funds under the Advance Funded or HCM1 funding method to make an interim disbursement of Federal Pell Grant or Federal Supplemental Educational Opportunity Grant funds to a student based on an estimated SAI, even if the school does not yet have a valid ISIR for that student, provided that the school notifies recipients in writing that the disbursement amounts may change upon receipt of an official ISIR from the Department. Schools may also permit Federal Work-Study employment for the first 60 consecutive days after student enrollment and may originate but not disburse a Direct Subsidized Loan.

Schools on the HCM2 or reimbursement payment method are not permitted to make such interim disbursements under any circumstances. No school is permitted to make interim disbursements to a student if conflicting information is still present in the student’s file or if the student has ceased attendance.

A school that chooses to make an interim disbursement based on an estimated SAI before school-initiated corrections are available takes full responsibility for submitting corrections or changes due to professional judgment and, once the school receives a valid revised ISIR, ensuring that award and disbursement amounts are correct. Schools making interim disbursements in these circumstances must follow the same procedures outlined in the 2024-25 Federal Student Aid Handbook Application and Verification Guide for interim disbursements related to verification, except that the interim disbursements are made prior to receipt of a valid ISIR rather than performing verification.

If an overpayment is the result of an interim disbursement, to the extent that the overpayment is not recovered by reducing subsequent disbursements to the student for the award year, the school must recover the overpayment. It is important to remember that interim disbursements are made at the school’s discretion; therefore, the school is ultimately responsible for repaying it. For additional information on interim disbursements and overpayments, please see the Federal Student Aid Handbook Volume 4. If a student withdraws after receiving an interim disbursement, the school must follow the procedures for students subject to verification in Volume 5 of the Federal Student Aid Handbook.

Because the COD System will not accept award amounts that are inconsistent with existing ISIR records, an institution that makes an interim disbursement of Title IV, HEA funds to a student in these circumstances cannot report the disbursement to the COD System until school-initiated corrections are available, the school has made the appropriate corrections, and the FAFSA Processing System (FPS) produces a valid ISIR for the student. Schools will have 30 days following the day that school-initiated corrections become available to complete this process and make any required corrections to disbursement amounts.

Get Help

We appreciate the extraordinary efforts being made by schools, vendors, states, and other partners during this difficult year.

For questions related to 2024-25 COD System implementation, contact the FSA Partner and School Relations Center at 1-800-848-0978. You may also email CODSupport@ed.gov.

For technical issues related to ISIR processing:

  • For support with your SAIG agreement and mailbox, or for help with technical issues related to ISIR processing, the FAFSA Partner Portal (FPP), or EDExpress, please contact the FPS Help Desk (formerly CPS/SAIG Technical Support) at 1-800-330-5947 or by email at support@fps.ed.gov.

  • For general questions related to the 2024-25 FAFSA, we welcome our partners to continue using the Contact Customer Support form in FSA’s Partner Connect Help Center. To submit a question, please enter your name, email address, topic, and question. When submitting a question, please select the topic “2024–25 FAFSA.”

To request assistance with financial aid management systems configuration or processing applications:

  • For schools that need direct technical assistance related to processing applications and packaging aid award offers, please continue submitting your requests to the College Support Concierge mailbox CollegeSupportStrategy-FAFSA@ed.gov.

Last Modified: 07/30/2024