Part: 2 - - The Application Process for Financial Aid
SectionTitle: How To Apply
A student MUST apply for federal student aid by using the FAFSA
or the new paper Renewal FAFSA. For 1994-95, the Department
mailed Renewal Applications to students who applied for federal
student aid in 1993-94, and who met certain conditions--for
instance, their Social Security Number matched the last Social
Security Number on their records. These students received a
Renewal Application in the mail by January 1, 1994. Students may
use this application rather than the FAFSA to apply for aid in 1994-
95. Unlike previous years, a student must file a FAFSA even if he
or she is only applying for a Federal Family Education Loan (FFEL)
(formerly called Guaranteed Student Loan). A student does not
have to pay a fee if he or she fills out only the FAFSA. However, a
student may be required to fill out additional questions on a separate
form in order to be considered for some state or institutional aid, and
a fee may be charged for processing these additional questions.
Note that the FAFSA now has state data elements that a number of
states use to award aid. Check with your state agency to find out if
it uses the information from the FAFSA to award aid or if it requires
applicants to submit additional information.
Students also may apply for federal aid electronically through EDE.
For colleges that participate, EDE allows a financial aid
administrator or the student to enter application information using a
personal computer or a mainframe system. After the financial aid
administrator reviews the entered data, the information is sent
electronically to the CPS. The CPS in turn processes it and sends
the school an ELECTRONIC SAR (ESAR). When filing through
EDE, students should bring with them to the computer a completed
signed, paper FAFSA, copies of income tax returns, parental
information, current bank statements, current home debt
information, and records of stocks, bonds, and other investments.
Schools that participate in EDE will also be able to participate in the
renewal application process. A school may request information for
all students who listed that school on the previous year's application
or for selected students from that group. The school can then print
out Renewal Applications. The student must provide new financial
information, but can leave the other information the same if it has
not changed. The new information is entered by computer
keyboard, as in an electronic application.
Electronic Data Exchange (EDE) Services
Each part of the delivery process now has an electronic equivalent,
from filing a financial aid application to reporting a Federal Pell
Grant payment. The services offered under EDE can significantly
speed up the application and corrections process. EDE services are
provided as a part of the Departments contract for General
Electronic Support. For more information contact: GES Customer
Service (319) 339-6642.
FILING AN ELECTRONIC APPLICATION
Instead of mailing an application to the Federal Student Aid
Programs, the student or financial aid administrator uses a personal
computer or mainframe terminal at the school to send application
information overnight to the Central Processing System. The
students EFC will be available to the school on the EDE system
within 3 working days.
- Schools may also choose to send the application data to their
Central Processing System on a magnetic tape/cartridge.
- Students who applied in the previous award year may update
their application for the current award year, on a renewal
- Students may enter the names of up to six schools to receive
their application data.
RECEIVING APPLICATION INFORMATION
- A school will receive application data for all students who have
listed that school on their applications. In addition, with the
students permission, and his or her Personal Identification Number
a school may change the institution number and receive duplicate
ESARs for students who did not originally list that institution on the
- Schools also have the option of receiving data on magnetic tape or
cartridge, through the Applicant Data Roster and Tape Service. For
more information contact the Systems Coordination Branch on (202)
- State agencies are able to receive student data for students residing
in their state and for out-of-state students attending school in their
CORRECTING STUDENT INFORMATION
- A school may correct the students information electronically,
instead of using hard-copy SAR.
REPORTING FEDERAL PELL GRANT PAYMENTS
- A school may submit the payment information for students who
receive Federal Pell Grants electronically, rather than submitting
Part 3 of the SAR (the Payment Voucher).
- The Electronic Payment Information function, formerly EDE
Stage III, allows your school to transmit and receive Federal Pell
Grant payment data electronically using record and data descriptions
similar to those used for Recipient Data Exchange (RDE). For more
information contact the Pell Grant Financial Management Division
on (202) 708-9807.
- Schools also have the option of submitting payment data via
magnetic tape (Recipient Data Exchange) or PC diskette (the Floppy
Diskette Exchange). For more information contact the Pell Grant
Systems Division on (202) 708-7716.