[Federal Register Volume 77, Number 134 (Thursday, July 12, 2012)]
[Notices]
[Pages 41173-41176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-17038]


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DEPARTMENT OF EDUCATION

[CFDA Nos. 84.007, 84.033, 84.038, 84.063, and 84.268]


Free Application for Federal Student Aid (FAFSA); 2013-2014 Award 
Year

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice.

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    Overview Information: Free Application for Federal Student Aid 
(FAFSA) Information to be Verified for the 2013-2014 award year.

SUMMARY: For each award year, the Secretary publishes in the Federal 
Register a notice announcing the FAFSA information that an institution 
and an applicant may be required to verify. The notice also specifies 
what documentation is acceptable to the Secretary for verifying FAFSA 
information.
    Through this notice, the Secretary announces for the 2013-2014 
award year the FAFSA information subject to, and the documentation 
acceptable for, verification.

FOR FURTHER INFORMATION CONTACT: Jacquelyn C. Butler, U.S. Department 
of Education, Office of Postsecondary Education, 1990 K Street NW., 
room 8053, Washington, DC 20006. Telephone: (202) 502-7890.
    If you use a telecommunications device for the deaf (TDD), call the 
Federal Relay Service (FRS), toll free, at 1-800-877-8339.
    Individuals with disabilities can obtain this document in an 
accessible format (e.g., braille, large print, audiotape, or compact 
disc) on request to the program contact person listed under FOR FURTHER 
INFORMATION CONTACT.

[[Page 41174]]


SUPPLEMENTARY INFORMATION: The following chart lists for the 2013-2014 
award year the FAFSA information that an institution and an applicant 
and, if appropriate, the applicant's parent(s) or spouse, may be 
required to verify under 34 CFR 668.56. The chart also lists acceptable 
documentation that must be provided under Sec.  668.57 to an 
institution for that information. The Secretary will include on the 
applicant's Institutional Student Information Record (ISIR) flags that 
will indicate which FAFSA information needs to be verified for that 
applicant and, if appropriate, the applicant's parent(s) or spouse. The 
Student Aid Report (SAR) provided to the applicant will indicate that 
the applicant's FAFSA information has been selected for verification 
and direct the applicant to the institution for further instructions 
for completing the verification process.

------------------------------------------------------------------------
          FAFSA information                 Acceptable documentation
------------------------------------------------------------------------
Income information for tax filers \1\
 
     Adjusted Gross Income     (1) Tax year 2012 information
     (AGI)..                            that the Secretary has
     U.S. Income Tax Paid....   identified as having been
     Untaxed Portions of IRA    obtained from the Internal
     Distributions..                    Revenue Service (IRS) (commonly
     Untaxed Portions of        referred to as the IRS Data
     Pensions..                         Retrieval Tool) that has not
     IRA Deductions and         been changed after the
     Payments..                         information was obtained from
     Tax Exempt Interest        the IRS; or
     Income..                          (2) A transcript \2\ obtained
     Education Credits.......   from the IRS that lists tax
                                        account information of the tax
                                        filer for tax year 2012. (Sec.
                                        668.57(a))
Income information for tax filers      For a student or the parent(s) of
 with special circumstances \1\.        a dependent student whose income
 Adjusted Gross Income (AGI).   is used in the calculation of
 U.S. Income Tax Paid........   the applicant's expected family
 Untaxed Portions of            contribution, who filed a joint
 Pensions..                             income tax return and is
 IRA Deductions and Payments.   separated, divorced, widowed, or
 Tax Exempt Interest Income..   married to someone other than
 Education Credits...........   the individual included on the
                                        joint income tax return--
                                       (1) A transcript \2\ obtained
                                        from the IRS that lists tax
                                        account information of the tax
                                        filer(s) for tax year 2012; and
                                       (2) A copy of IRS Form W-2 \3\
                                        for each source of employment
                                        income received for tax year
                                        2012.
                                       For an individual who is required
                                        to file a 2012 IRS income tax
                                        return and has been granted a
                                        filing extension by the IRS--
                                       1(a) A copy of IRS Form 4868,
                                        ``Application for Automatic
                                        Extension of Time to File U.S.
                                        Individual Income Tax Return,''
                                        that the individual filed with
                                        the IRS for tax year 2012; or
                                       (b) A copy of the IRS's approval
                                        of an extension beyond the
                                        automatic six-month extension if
                                        the individual requested an
                                        additional extension of the
                                        filing time for tax year 2012;
                                        and
                                       2(a) A copy of IRS Form W-2 \3\
                                        for each source of employment
                                        income received for tax year
                                        2012; and
                                       (b) If self-employed, a signed
                                        statement certifying the amount
                                        of the AGI and the U.S. income
                                        tax paid for tax year 2012.
                                       Note: An institution may request
                                        that an individual granted a
                                        filing extension submit tax
                                        information using the IRS Data
                                        Retrieval Tool, or by obtaining
                                        a transcript \2\ from the IRS
                                        that lists tax account
                                        information for tax year 2012
                                        after the income tax return is
                                        filed. If an institution
                                        receives the transcript, it must
                                        verify the income information of
                                        the tax filer(s). (Sec.
                                        668.57(a))
------------------------------------------------------------------------
Income information for nontax filers.  For an individual that has not
 Income earned from work.....   filed and, under IRS rules or
                                        other applicable government
                                        agency rules, is not required to
                                        file a 2012 income tax return--
                                       (1) A signed statement
                                        certifying--
                                       (a) That the individual has not
                                        filed and is not required to
                                        file an income tax return for
                                        tax year 2012; and
                                       (b) The sources of income earned
                                        from work as reported on the
                                        FAFSA and amounts of income from
                                        each source for tax year 2012
                                        that is not reported on IRS Form
                                        W-2; and
                                       (2) A copy of IRS Form W-2 \3\
                                        for each source of employment
                                        income received for tax year
                                        2012. (Sec.   668.57(a))
------------------------------------------------------------------------
     Number of Household       A statement signed by the
     Members.                           applicant and, if the applicant
                                        is a dependent student, by one
                                        of the applicant's parents, that
                                        lists the name and age of each
                                        household member and the
                                        relationship of that household
                                        member to the applicant.
                                       Note: Verification of number of
                                        household members is not
                                        required if:
                                        For a dependent student,
                                        the household size reported on
                                        the FAFSA is two and the parent
                                        is single, separated, divorced,
                                        or widowed; or the household
                                        size reported is three if the
                                        parents are married; or
                                        For an independent
                                        student, the household size
                                        reported on the FAFSA is one and
                                        the applicant is single,
                                        separated, divorced, or widowed;
                                        or the household size reported
                                        is two if the applicant is
                                        married. (Sec.   668.57(b)).
------------------------------------------------------------------------
     Number in College.......  (1) A statement signed by the
                                        applicant and, if the applicant
                                        is a dependent student, by one
                                        of the applicant's parents,
                                        listing the name and age of each
                                        household member who is or will
                                        be attending an eligible
                                        postsecondary educational
                                        institution as at least a half-
                                        time student in the 2013-2014
                                        award year and the name of that
                                        educational institution.

[[Page 41175]]

 
                                       (2) If an institution has reason
                                        to believe that an applicant's
                                        FAFSA information, or the signed
                                        statement provided by the
                                        applicant regarding the number
                                        of household members enrolled in
                                        eligible postsecondary
                                        institutions is inaccurate, the
                                        institution must obtain a
                                        statement from each institution
                                        named by the applicant that the
                                        household member in question is,
                                        or will be, attending that
                                        institution on at least a half-
                                        time basis unless--
                                       (a) The institution the student
                                        is attending determines that
                                        such a statement is not
                                        available because the household
                                        member in question has not yet
                                        registered at the institution he
                                        or she plans to attend; or
                                       (b) The institution has
                                        information indicating that the
                                        household member in question
                                        will be attending the same
                                        institution as the applicant.
                                       Note: Verification of the number
                                        of household members in college
                                        is not required if the reported
                                        number of household members
                                        enrolled at least half-time in
                                        eligible postsecondary
                                        institutions is one. (Sec.
                                        668.57(c))
------------------------------------------------------------------------
     Supplemental Nutrition    (1) A statement signed by the
     Assistance Program (SNAP-Food      applicant or, if the applicant
     Stamps).                           is a dependent student, by one
                                        of the applicant's parents,
                                        affirming that SNAP-Food Stamps
                                        benefits were received by
                                        someone in the household during
                                        the 2011 and/or 2012 calendar
                                        years.
                                       (2) If an institution has reason
                                        to believe that the signed
                                        statement provided by the
                                        applicant regarding the receipt
                                        of SNAP-Food Stamps benefits is
                                        inaccurate, the institution must
                                        obtain documentation from the
                                        agency that issued the SNAP-Food
                                        Stamps benefits. (Sec.
                                        668.57(d))
------------------------------------------------------------------------
     Child Support Paid......  (1) A statement signed by the
                                        applicant or parent, as
                                        appropriate, certifying--
                                       (a) The amount of child support
                                        paid;
                                       (b) The name of the person who
                                        paid the child support;
                                       (c) The name of the person to
                                        whom child support was paid; and
                                       (d) The names of the children for
                                        whom child support was paid.
                                       (2) If the institution has reason
                                        to believe that the information
                                        provided in the signed statement
                                        is inaccurate, the applicant
                                        must provide the institution
                                        with supporting documentation,
                                        such as--
                                       (a) A copy of the separation
                                        agreement or divorce decree that
                                        shows the amount of child
                                        support to be provided;
                                       (b) A statement from the
                                        individual receiving the child
                                        support showing the amount
                                        provided; or
                                       (c) Copies of the child support
                                        checks or money order receipts.
                                        (Sec.   668.57(d))
------------------------------------------------------------------------
     High School Completion    (1) High School Diploma
     Status.
                                       (a) A copy of the applicant's
                                        high school diploma; or
                                       (b) A copy of the applicant's
                                        final high school transcript
                                        that shows the date when the
                                        applicant completed secondary
                                        school education.
                                       Note: In cases where a copy of an
                                        applicant's high school diploma
                                        or final high school transcript
                                        is unavailable, e.g., the school
                                        is closed or located in a
                                        foreign country and the records
                                        are not available, an
                                        institution may accept
                                        alternative documentation to
                                        verify the applicant's high
                                        school completion status.
                                       (2) Recognized Equivalent of a
                                        High School Diploma
                                       (a) General Educational
                                        Development (GED) Certificate;
                                       (b) A State certificate received
                                        by a student after the student
                                        has passed a State-authorized
                                        examination that the State
                                        recognizes as the equivalent of
                                        a high school diploma;
                                       (c) An academic transcript of a
                                        student who has successfully
                                        completed at least a two-year
                                        program that is acceptable for
                                        full credit toward a bachelor's
                                        degree; or
                                       (d) For a person who is seeking
                                        enrollment in an educational
                                        program that leads to at least
                                        an associate degree or its
                                        equivalent and has not completed
                                        high school but has excelled
                                        academically in high school,
                                        documentation from the high
                                        school that the student excelled
                                        academically in high school and
                                        documentation from the
                                        postsecondary institution that
                                        the student has met the
                                        formalized, written policies of
                                        the postsecondary institution
                                        for admitting such students.
                                       (3) Homeschool
                                       (a) A transcript or the
                                        equivalent, signed by the parent
                                        or guardian, that lists the
                                        secondary school courses
                                        completed by the applicant and
                                        documents the successful
                                        completion of a secondary school
                                        education; or
                                       (b) A secondary school completion
                                        credential for homeschool (other
                                        than a high school diploma or
                                        its recognized equivalent)
                                        provided for under State law.
                                        (Sec.  Sec.   600.2,
                                        668.32(e)(1) and (e)(4))
------------------------------------------------------------------------
     Identity/Statement of     (1) An applicant must appear in
     Educational Purpose.               person and present the following
                                        documentation to an
                                        institutionally authorized
                                        individual to verify the
                                        applicant's identity--

[[Page 41176]]

 
                                       (a) A valid government-issued
                                        photo identification, such as
                                        but not limited to a driver's
                                        license, non-driver's license,
                                        military identification or
                                        passport; and
                                       (b) A signed statement certifying
                                        that the Federal student
                                        financial assistance received
                                        will only be used for
                                        educational purposes to pay the
                                        cost of attending that
                                        institution for the 2013-2014
                                        award year.
                                       (2) For documentation presented
                                        in person, an institution must
                                        maintain, an annotated copy of
                                        the identification submitted by
                                        the applicant that includes--
                                       (a) The date the documentation
                                        used to verify the applicant's
                                        identity was received; and
                                       (b) The name of the
                                        institutionally-authorized
                                        individual that obtained the
                                        documentation from the
                                        applicant.
                                       (3) If an applicant is unable to
                                        appear in person, he or she must
                                        provide the institution with--
                                       (a) A copy of a valid government-
                                        issued photo identification,
                                        such as but not limited to a
                                        driver's license, non-driver's
                                        license, military identification
                                        or passport; and
                                       (b) An original notarized
                                        statement signed by the
                                        applicant certifying that the
                                        Federal student financial
                                        assistance received will only be
                                        used for educational purposes to
                                        pay the cost of attending that
                                        institution for the 2013-2014
                                        award year. (Sec.   668.57(d))
------------------------------------------------------------------------
\1\ A tax filer that filed an income tax return other than an IRS form,
  such as a foreign or Puerto Rican tax form, must use the income
  information (converted to U.S. dollars) from the lines of that form
  that corresponds most closely to the income information reported on a
  U.S. income tax return.
\2\ If an institution determines, consistent with guidance that the
  Secretary may provide, that obtaining a transcript from the IRS is not
  possible, the institution may, consistent with the Secretary's
  guidance, accept a copy of the 2012 income tax return. The copy must
  include the signature of the tax filer or of one of the filers of a
  joint income tax return; or the signed, stamped, typed, or printed
  name and address of the preparer of the income tax return and the
  preparer's Social Security Number, Employer Identification Number, or
  Preparer Tax Identification Number. If a copy of the 2012 income tax
  return is not available the institution must accept--
(a) A copy of IRS Form W-2 (see footnote 3) for each source of
  employment income received for tax year 2012, and if self-employed, a
  signed statement certifying the amount of AGI and taxes paid for tax
  year 2012; or
(b) A signed statement by an individual that has filed an income tax
  return with a government of a U.S. territory or commonwealth or a
  foreign central government certifying the amount of AGI and taxes paid
  for tax year 2012.
\3\ If an individual who is required to submit an IRS Form W-2 is unable
  to obtain one in a timely manner, the institution may permit that
  individual to provide a signed statement, in accordance with 34 CFR
  668.57(a)(6), that includes--
(a) The amount of income earned from work;
(b) The source of that income; and
(c) The reason that the IRS Form W-2 is not available in a timely
  manner.

Other Sources for Detailed Information

    We provide a more detailed discussion on the verification process 
in the following resources:
     2013-2014 Application and Verification Guide.
     2013-2014 ISIR Guide.
     2013-2014 SAR Comment Codes and Text.
     2013-2014 COD Technical Reference.
     Program Integrity Information--Questions and Answers on 
Verification at http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/verification.html.
    You may access these publications at the Information for Financial 
Aid Professionals Web site at www.ifap.ed.gov.
    Electronic Access to This Document: The official version of this 
document is published in the Federal Register. Free Internet access to 
the official edition of the Federal Register and the Code of Federal 
Regulations is available via the Federal Digital System at www.gpo.gov/fdsys. At this site you can view this document, as well as all other 
documents of this Department published in the Federal Register, in text 
or Adobe's Portable Document Format (PDF). To view PDF documents, you 
must have the Adobe Acrobat Reader, which is available for free at the 
site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at 
www.federalregister.gov. Through the advanced search feature at this 
site, you can limit your search to documents published by the 
Department.

    Program Authority: 20 U.S.C. 1070a, 1070a-1, 1070b-1070b-4, 
1070c-1070c-4, 1070g, 1071-1087-2, 1087a-1087j, and 1087aa-1087ii; 
42 U.S.C. 2751-2756b.

    Dated: July 9, 2012.
David A. Bergeron,
Acting Assistant Secretary for Postsecondary Education.
[FR Doc. 2012-17038 Filed 7-11-12; 8:45 am]
BILLING CODE 4000-01-P