AwardYear: 1996-1997 Edition: PostSecondary Part: 2 - - The application process for financial aid SectionNumber: SectionTitle: Making changes PageNumbers: 40-42 If the student's application information on the SAR or ISIR is incorrect, the information must be CORRECTED OR UPDATED. A financial aid administrator may recalculate the student's EFC for the federal campus-based and FFEL programs without having the student report the corrected or updated information to the processing system. However, for the Federal Pell Grant Program, in most cases corrections must be reported to the CPS for recalculation of the EFC. Please see The Verification Guide 1996-97 for exceptions to this rule. When a student files a FAFSA, it creates a "snapshot" of the financial situation of the student's family as of the date the application was signed. However, errors may occur if a student files the wrong information on an application or if there are errors in data entry at the FAFSA processor. A student may use the SAR to correct most application errors that were made on an initial application or may make corrections via EDE if his or her school participates in EDE. For instance, a dependent student reports $24,000 taxable income for her parents on an application filed on March 10, 1996. While reviewing her application information, she notices that she used her parents' total taxable income from the tax return, rather than the adjusted gross income figure, which was $19,000. Since the correct amount was $19,000, the student must make the correction to this item electronically through EDE at her institution, or on Part 2 of the SAR under the column headed "The correct answer is" and return the SAR to the FAFSA processor. The student may not, however, update income or asset information to reflect changes to her family's financial situation that took place after the FAFSA was filed. For example, if the same student's family sold some of its stock on June 1 and spent that money on a nonreported asset such as a car, the student may not update her information to show a change in the family's assets. To correct the SAR, the student must enter the correct information for that line item on Part 2 of the SAR and mail Part 2 back to the FAFSA processor. The student must sign Part 2 when submitting corrections; at least one parent of a dependent student must also sign. Please note that even if a school did not transmit a student's application via EDE, it can still make the corrections electronically. If the student's corrections are being made through EDE, the corrected data is processed by the CPS and an electronic ISIR will be returned to the school; the student will receive the one-page SAR Information Acknowledgement. The school must keep signed documentation for corrections submitted electronically; the documentation must be collected before the school sends data to the CPS. As noted previously, most of the information on the application may not be updated to reflect changes after the application has been filed. However, there are three instances when updating of previously reported information must occur. When an update is required it must be reported to the CPS if it will affect the amount of a student's Federal Pell Grant. - DEPENDENCY STATUS. For all applicants, any change to the criteria that affect dependency status, except a change in the student's marital status, must be reported. - NUMBER OF FAMILY MEMBERS (HOUSEHOLD SIZE). For applicants selected for verification, either by the CPS or the school, household size must be updated to the time of verification except if the change occurred as a result of a change in the student's marital status. - NUMBER OF FAMILY MEMBERS IN COLLEGE. For applicants selected for verification, either by the CPS or the school, the number of family members in college must be updated to the time of verification except if the change occurred as a result of a change in the student's marital status. Please note that students are now able to use Part 2 of the SAR for corrections and to report a change in dependency status, rather than having to start over with a Correction FAFSA. The only situations in which the Department requires the use of a Correction FAFSA involve cases in which a student's reported SSN is duplicated by another student. DEPENDENCY OVERRIDES Sometimes a student has unusual circumstances that may justify overriding the dependency status determined by Section D of the FAFSA. A financial aid administrator may only override an applicant's dependency status to make a dependent student independent. The override is not used in reverse, to make an independent student dependent. (If a financial aid administrator's information indicates that an independent student is receiving substantial support from his or her parents, the financial aid administrator may adjust one or more of the data elements in the EFC calculation, such as nontaxable income.) To override dependency status, the financial aid administrator must fill out the "School Use Only" box in Section H of the FAFSA. The student fills out the gray and white areas of the form (for independent students) even though the instructions state that the red and white areas (for dependent students) should be used. The financial aid administrator then authorizes the dependency override by filling in the override code and the school's Title IV Institution Number, and by signing in the "School Use Only" box. Note that a separate letter from the financial aid administrator attached to the application (in lieu of making the override on the FAFSA or the SAR) is NOT acceptable. The financial aid administrator may also use the SAR to override a student's dependency status. To do this, he or she must use the dependency override box in the "School Use Only" box on Part 2 of the SAR or through EDE. Check box 1 in the section labeled D/O, fill in the school's Title IV Institution Number, and sign. A school may also use the SAR or EDE to cancel a dependency override performed by another financial aid administrator. He or she must mark box 2 in the section labeled D/O on the SAR or follow the prompts provided in EDE software. All dependency overrides must be on a case-by-case basis, and the reason for the adjustment must be documented in the student's file. Note that dependency status override can only be performed when changing the student's status from dependent to independent. However, a school may use a SAR or EDE to cancel a dependency override performed by another financial aid administrator. The school must mark box 2 in the section labeled D/O on the SAR or follow the prompts provided in EDE software. In sum, the financial aid administrator may authorize a dependency override on the FAFSA, the renewal FAFSA, Part 2 of the SAR, or via the EDE system. |