| AwardYear: 1997-1998 ChapterNumber: 3 ChapterTitle: Completing the Verification Process Section: Updating PageNumber: As shown here, 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. 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 [[The "Updating" chart on page 44 is currently unavailable for viewing. Please reference your paper docuemnt for additional information.]] [[Use the SAR or electronic process to update]] 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 on the prior page details the specific updating requirements. 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 [[Exceptions to required updating]] 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 if the change is a result 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.*10* 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 and aren't required to file a federal tax return, you may use income earned from work in lieu of an AGI. *10* In certain cases, professional judgment may apply. However, you may not override a student's dependency status until AFTER you have resolved any conflicting information and any required verification is completed. For more on professional judgment, see the Counselor's Handbook. |