Maintained for Historical Purposes

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

AwardYear: 1995-1996
ChapterNumber: 3
ChapterTitle: Completing the Verification Process
Section: Updating
PageNumber:


**[A correction page was issued on 6/28/95 which replaces pages 41
and 42. This entry reflects the CORRECTED text. Please
reference these pages in your paper document for additional
information.]**

As shown below, there are only three application data items that a
student is allowed to update if they change after the application is
filed. The chart on the next page briefly summarizes the
requirements and procedures for updating.

UPDATING

Except for the three data items listed below, no other application
information can be updated if it changes after the application has
been filed.

Dependency Status
Household Size
Number Enrolled in Postsecondary Education

All three of the above items can be updated DIRECTLY on the SAR
or through the electronic corrections process. Other information
that has changed since the original application was filed MAY NOT
be updated.


Updating Dependency Status

An applicant MUST update his or her dependency status if it
changes at any time during the award year, with one major
exception. If the student's dependency status changes as the result of
a change in the applicant's marital status,*9* dependency status
MUST NOT be updated.

Dependency status can be updated DIRECTLY ON THE SAR or
through the electonic corrections process, and must be for Pell Grant
recipients. However, for the Campus-based, Federal Direct Loan,
and Federal Stafford Loan Programs, reprocessing is not required.
You may recalculate the student's EFC based upon the updated
dependency status and disburse aid from these programs
accordingly. However, you may be liable for any overpayment that
results from your having incorrectly recalculated the EFC. (A
student may not update his or her dependency status on a Stafford
loan application that has been previously certified.)

**[The charts on page 42 are currently unavailable for viewing.
Please reference your paper document for additional information.]**

Updating Household Size and Number Enrolled in
Postsecondary Education

If a student's household size or number enrolled in postsecondary
education has changed as a result of a change in the applicant's
marital status, the information may not be updated.*10* However,
if it changes for any other reason, an applicant MUST update
household size and the number enrolled in postsecondary education.
All applicants selected for verification MUST update these items to
be correct AT THE TIME OF VERIFICATION.

Household size and number enrolled in postsecondary education
should be updated if they change at any time during the award year
(for reasons other than a change in the applicantÂ’s marital status).
Note that IT IS THE STUDENTÂ’S RESPONSIBILITY to notify the
school if an update of either item is necessary; the school is not
expected to continually check these items for each student to assure
their validity. Rather, the school will have complied with this rule
by informing applicants of their responsibility to comply with this
requirement.

The procedures for updating differ depending upon the type of aid
the applicant will receive, as explained on the following page.

**[A correction page was issued on 6/28/95 which replaces pages 41
and 42. This entry reflects the CORRECTED text. Please
reference these pages in your paper document for additional
information.]**

FOR THE FEDERAL PELL GRANT PROGRAM. Household
size and number enrolled in postsecondary education should be
updated on the SAR or through the electronic corrections process.
When a student updates this information, you may choose to
recalculate the student's EFC by hand, or you may require the
student to resubmit the application for processing.

If you recalculate and the student's award remains unchanged or
increases, you may pay the student based on the original EFC.
Corrections and processing are not required.

However, if you wish to pay the student under the increased
award, the application must be reprocessed. You may either
withhold payment until the reprocessed output document is
received, or make a first payment based on the original EFC,
adjusting the second payment upon receipt of the reprocessed
EFC. (You are potentially liable for any overaward resulting
from an incorrect hand-calculation of the EFC.)

If the student's scheduled award will decrease, the application
must be reprocessed; you must withhold payment until you
receive the reprocessed EFC. (For details on recalculations and
first payments, see the Counselor's Handbook.)

FOR THE CAMPUS-BASED, FEDERAL DIRECT LOAN, AND
FEDERAL STAFFORD LOAN PROGRAMS. When a student
updates household size and number enrolled for verification, you
may choose to recalculate the student's EFC by hand, 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, Federal Direct Loan, or Federal
Stafford Loan funds based upon 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

Last Modified: 06/11/1998