[Federal Register Volume 79, Number 122 (Wednesday, June 25, 2014)]
[Notices]
[Pages 36040-36044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-14895]


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DEPARTMENT OF EDUCATION

[CFDA Numbers: 84.007, 84.033, 84.038, 84.063, and 84.268.]


Free Application for Federal Student Aid (FAFSA[supreg]) 
Information To Be Verified for the 2015-2016 Award Year

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice.

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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, as well as the acceptable 
documentation for verifying FAFSA information. This is the notice for 
the 2015-2016 award year.

FOR FURTHER INFORMATION CONTACT: Jacquelyn C. Butler, U.S. Department 
of Education, 1990 K Street NW., Room 8053, Washington, DC 20006. 
Telephone: (202) 502-7890.
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), 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.

SUPPLEMENTARY INFORMATION: The Secretary will include on the 
applicant's Institutional Student Information Record (ISIR) flags that 
will indicate that the applicant has been selected by the Secretary for 
verification and the Verification Tracking Group that the applicant has 
been placed in, which in turn indicates 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.
    The following chart lists, for the 2015-2016 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 the acceptable documentation that must 
be provided under Sec.  668.57 to an institution for that information 
to be verified.

------------------------------------------------------------------------
      FAFSA information                 Acceptable documentation
------------------------------------------------------------------------
Income information for tax     For income information listed under items
 filers 1 3.                    a through g for tax filers--
 a. Adjusted Gross Income      (1) Tax year 2014 information that the
 (AGI)                          Secretary has identified as having been
 b. U.S. Income Tax Paid        obtained from the Internal Revenue
 c. Untaxed Portions of IRA     Service (IRS) through the IRS Data
 Distributions                  Retrieval Tool \2\ and that has not been
 d. Untaxed Portions of         changed after the information was
 Pensions                       obtained from the IRS; or
 e. IRA Deductions and         (2) A transcript \2\ obtained from the
 Payments                       IRS that lists tax account information
 f. Tax Exempt Interest         of the tax filer for tax year 2014.
 Income
 g. Education Credits

[[Page 36041]]

 
 h. Other Untaxed Income.....  For tax filers required to verify other
                                untaxed income, a statement signed by
                                the applicant and, if the applicant is a
                                dependent student, by one of the
                                applicant's parents that lists--
                               (1) The sources of other untaxed income
                                as provided under section 480(b) of the
                                Higher Education Act of 1965, as amended
                                (HEA), and the amount of income from
                                each source for tax year 2014; and
                               (2) A copy of IRS Form W-2 \4\ for each
                                source of employment income received for
                                tax year 2014.
Income information for tax     (1) For a student or the parent(s) of a
 filers with special            dependent student who filed a 2014 joint
 circumstances 1 3.             income tax return and whose income is
 a. Adjusted Gross Income       used in the calculation of the
 (AGI).                         applicant's expected family contribution
 b. U.S. Income Tax Paid.....   and who at the time the FAFSA was
 c. Untaxed Portions of IRA     completed was separated, divorced,
 Distributions.                 widowed, or married to someone other
 d. Untaxed Portions of         than the individual included on the 2014
 Pensions.                      joint income tax return--
 e. IRA Deductions and         (a) A transcript \2\ obtained from the
 Payments.                      IRS that lists tax account information
 f. Tax Exempt Interest         of the tax filer(s) for tax year 2014;
 Income.                        and
 g. Education Credits........  (b) A copy of IRS Form W-2 \4\ for each
                                source of employment income received for
                                tax year 2014.
                               (2) For an individual who is required to
                                file a 2014 IRS income tax return and
                                has been granted a filing extension by
                                the IRS--
                               (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 2014;
                               (b) If applicable, 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 2014;
                               (c) A copy of IRS Form W-2 \4\ for each
                                source of employment income received for
                                tax year 2014; and
                               (d) If self-employed, a signed statement
                                certifying the amount of AGI and U.S.
                                income tax paid for tax year 2014.
                               Note: An institution may require that,
                                after the income tax return is filed, an
                                individual granted a filing extension
                                submit tax information using the IRS
                                Data Retrieval Tool \2\ or by obtaining
                                a transcript \2\ from the IRS that lists
                                tax account information for tax year
                                2014. When an institution receives such
                                information, it must be used to reverify
                                the FAFSA information contained on the
                                transcript \2\.
 h. Other Untaxed Income.....  (3) For tax filers with special
                                circumstances who are required to verify
                                other untaxed income, a statement signed
                                by the applicant and, if the applicant
                                is a dependent student, by one of the
                                applicant's parents, that lists the
                                sources of other untaxed income as
                                provided under section 480(b) of the HEA
                                and the amount of income from each
                                source for tax year 2014.
Income information for nontax  For an individual who has not filed and,
 filers.                        under IRS rules or other applicable
                                government agency rules, is not required
                                to file a 2014 income tax return--
 a. Income earned from work    (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 2014;
                                  (b) The sources of income earned from
                                   work and the amount of income from
                                   each source for tax year 2014;
 b. Other Untaxed Income.....     (c) For nontax filers required to
                                   verify other untaxed income, the
                                   source of income as provided under
                                   section 480(b) of the HEA and the
                                   amount of income from each source for
                                   tax year 2014; and
                               (2) A copy of IRS Form W-2 \4\ for each
                                source of employment income received for
                                tax year 2014.
                               Note: If an institution has reason to
                                believe that the signed statement
                                provided by the applicant regarding
                                whether the applicant has not filed and
                                is not required to file a 2014 income
                                tax return is inaccurate, the
                                institution must request that the
                                applicant obtain confirmation of non-
                                filing from the IRS.
Number of Household Members..  A statement signed by the 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 indicated on the ISIR is
                                two and the parent is single, separated,
                                divorced, or widowed, or the household
                                size indicated on the ISIR is three if
                                the parents are married or unmarried and
                                living together; or
                                For an independent student, the
                                household size indicated on the ISIR is
                                one and the applicant is single,
                                separated, divorced, or widowed, or the
                                household size indicated on the ISIR is
                                two if the applicant is married.
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 2015-2016 award
                                year in a program that leads to a degree
                                or certificate and the name of that
                                educational institution.
                               (2) If an institution has reason to
                                believe that the signed statement
                                provided by the applicant regarding the
                                number of household members enrolled in
                                eligible postsecondary institutions is
                                inaccurate, the institution must obtain
                                documentation from each institution
                                named by the applicant that the
                                household member in question is, or will
                                be, attending on at least a half-time
                                basis unless--

[[Page 36042]]

 
                                  (a) The applicant's institution
                                   determines that such documentation is
                                   not available because the household
                                   member in question has not yet
                                   registered at the institution the
                                   household member plans to attend; or
                                  (b) The institution has documentation
                                   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 number in college
                                indicated on the ISIR is ``1.''
Supplemental Nutrition         (1) A statement signed by the applicant
 Assistance Program (SNAP,      or, if the applicant is a dependent
 formerly known as the Food     student, by one of the applicant's
 Stamp Program).                parents affirming that SNAP benefits
                                were received by someone in the
                                household during the 2013 and/or 2014
                                calendar year.
                               (2) If an institution has reason to
                                believe that the signed statement
                                provided by the applicant regarding the
                                receipt of SNAP benefits is inaccurate,
                                the applicant must provide the
                                institution with documentation from the
                                agency that issued the SNAP benefits.
                               Note: Verification of the receipt of SNAP
                                benefits is not required if the receipt
                                of SNAP benefits is not indicated on the
                                applicant's ISIR.
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 and ages 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
                                institution must obtain 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 received; or
                                  (c) Documentation that the child
                                   support payments were made (e.g.,
                                   copies of the child support checks,
                                   money order receipts, or similar
                                   records of electronic payments having
                                   been made).
                               Note: Verification of child support paid
                                is not required if child support paid is
                                not indicated on the applicant's ISIR.
High School Completion Status  (1) High School Diploma
                                  (a) A copy of the applicant's high
                                   school diploma;
                                  (b) A copy of the applicant's final
                                   official high school transcript that
                                   shows the date when the diploma was
                                   awarded; or
                                  (c) A copy of the ``secondary school
                                   leaving certificate'' (or other
                                   similar document) for students who
                                   completed secondary education in a
                                   foreign country and are unable to
                                   obtain a copy of their high school
                                   diploma or transcript.
                               Note: Institutions that have the
                                expertise may evaluate foreign secondary
                                school credentials to determine their
                                equivalence to U.S. high school
                                diplomas. Institutions may also use a
                                foreign diploma evaluation service for
                                this purpose.
                               (2) Recognized Equivalent of a High
                                School Diploma
                                  (a) General Educational Development
                                   (GED) Certificate or GED transcript;
                                  (b) A State certificate or transcript
                                   received by a student after the
                                   student has passed a State-authorized
                                   examination (HiSET, TASC, or other
                                   State-authorized examination) that
                                   the State recognizes as the
                                   equivalent of a high school diploma;
                                  (c) An academic transcript that
                                   indicates the student successfully
                                   completed at least a two-year program
                                   that is acceptable for full credit
                                   toward a bachelor's degree at any
                                   participating institution; 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 who
                                   excelled academically in high school
                                   but did not finish, documentation
                                   from the high school that the student
                                   excelled academically and
                                   documentation from the postsecondary
                                   institution that the student has met
                                   its written policies for admitting
                                   such students.
                               (3) Homeschool
                                  (a) If the State where the student was
                                   homeschooled requires by law that
                                   such students obtain a secondary
                                   school completion credential for
                                   homeschool (other than a high school
                                   diploma or its recognized
                                   equivalent), a copy of that
                                   credential; or
                                  (b) If State law does not require the
                                   credential noted in 3a), a transcript
                                   or the equivalent signed by the
                                   student's parent or guardian that
                                   lists the secondary school courses
                                   the student completed and documents
                                   the successful completion of a
                                   secondary school education in a
                                   homeschool setting.
                               Note: In cases where documentation of an
                                applicant's completion of a secondary
                                school education is unavailable, e.g.,
                                the secondary school is closed and
                                information is not available from
                                another source, such as the local school
                                district or a State Department of
                                Education, or in the case of
                                homeschooling, the parent(s)/guardian(s)
                                who provided the homeschooling is
                                deceased, an institution may accept
                                alternative documentation to verify the
                                applicant's high school completion
                                status.
                               When documenting an applicant's high
                                school completion status, an institution
                                may rely on documentation it has already
                                collected for purposes other than the
                                Title IV verification requirements if
                                the documentation meets the criteria
                                outlined above (e.g., high school
                                transcripts maintained in the admissions
                                office).
Identity/Statement of          (1) An applicant must appear in person
 Educational Purpose.           and present the following documentation
                                to an institutionally authorized
                                individual to verify the applicant's
                                identity:

[[Page 36043]]

 
                                  (a) A valid government-issued photo
                                   identification such as, but not
                                   limited to, a driver's license, non-
                                   driver's identification card, other
                                   State-issued identification, or
                                   passport. The institution must
                                   maintain an annotated copy of the
                                   valid government-issued photo
                                   identification that includes--
                                    i. The date the identification was
                                     presented; and
                                    ii. The name of the institutionally
                                     authorized individual who reviewed
                                     the identification; and
                                  (b) A signed statement using the exact
                                   language as follows, except that the
                                   student's identification number is
                                   optional if collected elsewhere on
                                   the same page as the statement:
 
                                    Statement of Educational Purpose
 
                               I certify that I ---------------- (Print
                                Student's Name) am the individual
                                signing this Statement of Educational
                                Purpose and that the Federal student
                                financial assistance I may receive will
                                only be used for educational purposes
                                and to pay the cost of attending --------
                                -------------------------- (Name of
                                Postsecondary Educational Institution)
                                for 2015-2016.
                               ----------------------------------------
                                (Student's Signature) (Date)
                               ----------------------------------------
                                (Student's ID Number)
                               (2) If an institution determines that an
                                applicant is unable to appear in person
                                to present a valid photo identification
                                and execute the Statement of Educational
                                Purpose, the applicant 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 identification
                                   card, other State-issued
                                   identification, or passport that is
                                   acknowledged in a notary statement or
                                   a copy of the valid photo
                                   identification presented to a notary;
                                   and
                                  (b) An original notarized statement
                                   signed by the applicant using the
                                   exact language as follows, except
                                   that the student's identification
                                   number is optional if collected
                                   elsewhere on the same page as the
                                   statement:
 
                                    Statement of Educational Purpose
 
                               I certify that I ---------------- (Print
                                Student's Name) am the individual
                                signing this Statement of Educational
                                Purpose and that the Federal student
                                financial assistance I may receive will
                                only be used for educational purposes
                                and to pay the cost of attending --------
                                ------------------ (Name of
                                Postsecondary Educational Institution)
                                for 2015-2016.
                               ------------------------------------
                                (Student's Signature) (Date)
                               ------------------------------------
                                (Student's ID Number)
------------------------------------------------------------------------
\1\ A tax filer who 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 correspond most closely to the income information reported on a
  U.S. income tax return. An institution may also accept a transcript
  obtained from a government of a U.S. territory or commonwealth, or a
  foreign central government that includes all of the tax filer's income
  and tax information required to be verified for tax year 2014.
\2\ An institution may accept a copy of a 2014 income tax return for tax
  filers who are unable to use the IRS Data Retrieval Tool or obtain an
  IRS Tax Return Transcript consistent with guidance that the Secretary
  may provide (e.g., victims of identity theft, individuals who filed an
  amended tax return, individuals who filed an income tax return other
  than an IRS form, or individuals with authentication issues with the
  IRS). 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.
\3\ If a tax filer did not retain a copy of his or her 2014 tax account
  information and that information cannot be located by the IRS or a
  government of a U.S. territory or commonwealth or a foreign central
  government, the institution must accept--
(a) A copy of IRS Form W-2 (see footnote 4) for each source of
  employment income received for tax year 2014 and, if self-employed, a
  signed statement certifying the amount of AGI and taxes paid for that
  self-employment for tax year 2014; or
(b) A copy of a wage and tax statement or a signed statement by an
  individual who 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 2014.
\4\ An individual who is required to submit an IRS Form W-2 but did not
  maintain his or her copy should request a duplicate copy from the
  employer who issued the original W-2. If the individual 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 why 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:
     2015-2016 Application and Verification Guide.
     2015-2016 ISIR Guide.
     2015-2016 SAR Comment Codes and Text.
     2015-2016 COD Technical Reference.
     Program Integrity Information--Questions and Answers on 
Verification at http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/verification.html.
    These publications are on 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 the document 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

[[Page 36044]]

published in the Federal Register, in text or Adobe Portable Document 
Format (PDF). To use PDF you must have Adobe Acrobat Reader, which is 
available 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. Specifically, 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: June 20, 2014.
Lynn B. Mahaffie,
Acting Assistant Secretary for Postsecondary Education.
[FR Doc. 2014-14895 Filed 6-24-14; 8:45 am]
BILLING CODE 4000-01-P