Maintained for Historical Purposes

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

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.

Last Modified: 07/29/1998