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Tolerance Options Instead of Correcting

AwardYear: 1996-1997
ChapterNumber: 3
ChapterTitle: Completing the Verification Process
Section: Tolerance Options Instead of Correcting

[[Tolerance option applies ONLY to students completing
Verification can sometimes uncover errors in application data that
are so minor the applicant's eligibility for aid will not be significantly
affected. Therefore, ED has established a tolerance option for
students completing verification.

If the original application contains any errors in nondollar items,
such as household size, you MAY NOT use the tolerance option. The
student must follow the applicable correction procedures detailed in
the next section. However, if there are ONLY dollar amount errors,
and all dollar errors are within the tolerance limit, you may award the
student's aid based on the application data as is, without requiring
that the EFC be recalculated. Note that if you do not wish to figure
the tolerance, you may simply have the student submit the corrected
data for reprocessing (see the next section).

If you want to calculate the total dollar error, however, first add the
original (uncorrected) AGI*9* and untaxed income amounts. From
that amount, subtract the original U.S. income tax paid to get Total
A. Then, add the CORRECT AGI and untaxed income amounts and
subtract from that total the CORRECT U.S. income tax paid to get
Total B. If the difference between Totals A and B is $400 or less
(and there are ONLY dollar amount errors), the errors are within
tolerance; recalculation is not required. In such a case, you would use
verification status code "T" when reporting the Pell Grant payment.
(See the "Verification Status Codes" section earlier in this chapter.)

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Last Modified: 06/09/1998