Maintained for Historical Purposes

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

AwardYear: 1996-1997
ChapterNumber: 3
ChapterTitle: Completing the Verification Process
Section: Updating
PageNumber:


[[The "Updating" chart on page 44 is currently unavailable for
reviewing. Please reference your paper document for additional
information.]]

As shown above, a student may be able to update three application
data items if those items change AFTER the application is filed and
if the changes do not result from a change in the applicant's marital
status. Other information that has changed since the original
application was filed MAY NOT be updated.

Two of the three items listed (household size and number enrolled in
postsecondary education) MUST be updated if the applicant is
selected for verification. If the applicant is NOT SELECTED for
verification, household size and number in postsecondary education
CANNOT BE UPDATED. The chart below details the specific
updating requirements.

[[The charts on page 44 is currently unavailable for viewing.
Please reference you paper document for additional information.]]

[[Use the SAR or electronic process to update]]
Dependency status, household size, and number in postsecondary
education can be updated DIRECTLY on the SAR or through the
electronic corrections process.


Updating Dependency Status

[[No update for change in marital status or if Direct Loan has been
originated or Stafford Loan certified]]
As noted on the chart on the previous page, an applicant MUST
update his or her dependency status if it changes at any time during
the award year, with two major exceptions:

- An applicant cannot update his or her dependency status if it
changes as the result of a change in marital status.*10*

- Once you have originated a Direct Loan or certified a Federal
Stafford Loan, the Direct Loan origination record and the Federal
Stafford Loan application cannot be changed to reflect a change in
dependency status.

[[Reprocessing vs. recalculating EFC]]
For Pell Grant recipients, dependency status updates must be done
through reprocessing, either by making changes on the SAR or
transmitting changes through the electronic corrections process.
Reprocessing is not required for the campus-based programs.
Instead, you may recalculate the student's EFC based on the updated
dependency status and disburse aid accordingly. You cannot
recalculate an EFC for a CERTIFIED Federal Stafford Loan
application or an EXISTING Direct Loan origination record, but you
CAN recalculate the EFC for ADDITIONAL loans if the student
qualifies. You may be liable for any overpayment that results from
having incorrectly recalculated the EFC.


Updating Household Size and Number Enrolled in
Postsecondary Education

Household size or number enrolled in postsecondary education
cannot be updated because of a change in marital status. If any other
changes affect these items, they must be updated and must be correct
at the time of verification. (Note that the exception for professional
judgment, noted in footnote 10 below, also applies to these items.)

[[Updating procedures apply only if applicant is selected for
verification]]
The procedures for updating differ depending on the type of aid the
applicant will receive:

FOR THE FEDERAL PELL GRANT PROGRAM. If the
applicant is selected for verification, and household size or
number enrolled in postsecondary education has changed, you
have some choices in handling this new information:

- If the update(s) will either increase or not affect the Pell award,
you need do nothing. Corrections and processing are not
REQUIRED. If, however, the student's award will increase, and
you WISH to pay based on an increase, reprocessing is required.
The appropriate update(s) must be made either on the SAR or
through the electronic corrections process. You may either
withhold payment until you receive the reprocessed output
document or make a first payment based on the original EFC,
adjusting the second payment on receipt of the reprocessed EFC.

- If the update(s) will cause a decrease in the scheduled award,
reprocessing is required; you must withhold payment until you
receive the reprocessed EFC. (For details on recalculations, see
the Counselor's Handbook.)

FOR THE CAMPUS-BASED, DIRECT LOAN, AND FEDERAL
STAFFORD LOAN PROGRAMS. When a student selected for
verification updates household size and number enrolled in
postsecondary education, you may recalculate the student's EFC
using the updated data. (However, you may choose not to
recalculate, instead requiring the student to update the data and have
his or her application reprocessed.)

If you award campus-based, Direct Loan, or Federal Stafford Loan
funds based on your recalculation, YOU MAY BE LIABLE FOR
ANY OVERPAYMENT that results from your having incorrectly
recalculated the EFC.


Using Updated Information to Award Aid

If you made interim disbursements to a student based on information
that must now be updated, you must do the following:

- Use the updated information to determine the correct award.

- Adjust prior or future disbursements to avoid an overaward.


*9* If the applicant (and/or parents, if the applicant is dependent) did
not file a federal tax return, you may use income earned from work
in lieu of an AGI.

*10* If an applicant's marital status changes as a result of death,
divorce, or separation, you may be able to override the applicant's
reported dependency status, using professional judgment, after you
have resolved any conflicting information and any required
verification is completed. For more on professional judgment, see
the Counselor's Handbook.

Last Modified: 06/09/1998