Maintained for Historical Purposes

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

Updating

AwardYear: 1998 - 1999
ChapterNumber: 3
ChapterTitle: Completing The Verification Process
Section: Updating
PageNumber: 1

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.





Two of the three items listed (household size and number enrolled in postsecondary education) must be updated if the applicant is selected for verification by either the CPS or the school. 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. Dependency status, household size, and number in postsecondary education can be updated directlyusing the ISIR or SAR.




Updating Dependency Status

As noted on the previous chart, 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 the applicant‘s marital status.14
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.

For Pell Grant recipients, dependency status updates must be done through reprocessing, either by using the ISIR or SAR. 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

For applicants not selected for verification, household size or number enrolled in postsecondary education cannot be updated. For applicants selected for verification, these items must be updated to be correct at the time of verification (unless the change is a result of a change in the applicant’s marital status, in which case updating is not permitted.)
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 Pell award will either increase or remain the same, corrections and reprocessing are not required. If the award will increase and you wish to pay based on that increase, reprocessing is required. The appropriate update(s) must be made using the ISIR or SAR. 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 you choose to make the first payment and the reprocessed EFC shows that your calculation was incorrect, you may be liable for any resulting overpayment.)

If the scheduled award will decrease, reprocessing is required; you must withhold payment until you receive the reprocessed EFC.

For the campus-based, Direct Loan, and FFEL 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 on the ISIR or SAR and have his or her application data reprocessed.)

If you award campus-based, Direct Subsidized 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 ensure the correct award.