[Federal Register Volume 80, Number 123 (Friday, June 26, 2015)]
[Notices]
[Pages 36783-36788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15782]


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DEPARTMENT OF EDUCATION


Free Application for Federal Student Aid (FAFSA[supreg]) 
Information To Be Verified for the 2016-2017 Award Year

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice.

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

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 2016-2017 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 2016-2017 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 filers......  For income information listed
a. Adjusted Gross Income (AGI).........   under items a through g for
b. U.S. Income Tax Paid................   tax filers--
c. Untaxed Portions of IRA               (1) Tax year 2015 information
 Distributions..                          that the Secretary has
d. Untaxed Portions of Pensions........   identified as having been
e. IRA Deductions and Payments.........   obtained from the Internal
f. Tax Exempt Interest Income..........   Revenue Service (IRS) through
g. Education Credits...................   the IRS Data Retrieval Tool
                                          \1\ and that has not been
                                          changed after the information
                                          was obtained from the IRS;
                                         (2) A transcript \1\ obtained
                                          from the IRS that lists tax
                                          account information of the tax
                                          filer for tax year 2015; or
                                         (3) A transcript \1\ that was
                                          obtained at no cost from the
                                          relevant taxing authority of a
                                          U.S. territory (Guam, American
                                          Samoa, the U.S. Virgin
                                          Islands) or commonwealth
                                          (Puerto Rico and the Northern
                                          Mariana Islands), or a foreign
                                          central government that lists
                                          tax account information of the
                                          tax filer for tax year 2015.

[[Page 36784]]

 
    h. Other Untaxed Income............  For tax filers required to
                                          verify other untaxed income--
                                         (1) A statement signed by the
                                          applicant and, if the
                                          applicant is a dependent
                                          student, by one of the
                                          applicant's parents that lists
                                          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 2015; and
                                         (2) A copy of IRS Form W-2 \2\
                                          for each source of employment
                                          income received for tax year
                                          2015 or an equivalent
                                          document.\2\
Income information for tax filers with   (1) For a student or the
 special circumstances.                   parent(s) of a dependent
a. Adjusted Gross Income (AGI).........   student who filed a 2015 joint
b. U.S. Income Tax Paid................   income tax return and whose
c. Untaxed Portions of IRA                income is used in the
 Distributions..                          calculation of the applicant's
d. Untaxed Portions of Pensions........   expected family contribution
e. IRA Deductions and Payments.........   and who at the time the FAFSA
f. Tax Exempt Interest Income..........   was completed was separated,
g. Education Credits...................   divorced, widowed, or married
                                          to someone other than the
                                          individual included on the
                                          2015 joint income tax return--
                                         (a) A transcript \1\ obtained
                                          from the IRS or other relevant
                                          taxing authority that lists
                                          tax account information of the
                                          tax filer(s) for tax year
                                          2015; and
                                         (b) A copy of IRS Form W-2 \2\
                                          for each source of employment
                                          income received for tax year
                                          2015 or an equivalent
                                          document.\2\
                                         (2) For an individual who is
                                          required to file a 2015 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 2015;
                                            (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 2015;
                                            (c) A copy of IRS Form W-2
                                             \2\ for each source of
                                             employment income received
                                             for tax year 2015 or an
                                             equivalent document; \2\
                                             and
                                            (d) If self-employed, a
                                             signed statement certifying
                                             the amount of AGI and U.S.
                                             income tax paid for tax
                                             year 2015.
                                         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 \1\ or by
                                          obtaining a transcript \1\
                                          from the IRS that lists tax
                                          account information for tax
                                          year 2015. When an institution
                                          receives such information, it
                                          must be used to reverify the
                                          FAFSA information included on
                                          the transcript.\1\
                                         (3) For an individual who was
                                          the victim of IRS tax-related
                                          identity theft--
                                            (a) A Tax Return DataBase
                                             View (TRDBV) transcript
                                             obtained from the IRS; and
                                            (b) A statement signed and
                                             dated by the tax filer
                                             indicating that he or she
                                             was a victim of IRS tax-
                                             related identity theft and
                                             that the IRS has been made
                                             aware of the tax-related
                                             identity theft.
                                         Note: Tax filers may inform the
                                          IRS of the tax-related
                                          identity theft and obtain a
                                          TRDBV transcript by calling
                                          the IRS's Identity Protection
                                          Specialized Unit (IPSU) at 1-
                                          800-908-4490. Tax filers who
                                          cannot obtain a TRDBV
                                          transcript may instead submit
                                          another official IRS
                                          transcript or equivalent
                                          document provided by the IRS
                                          if it includes all of the
                                          income and tax information
                                          required to be verified.
                                          Unless the institution has
                                          reason to suspect the
                                          authenticity of the TRDBV
                                          transcript or an equivalent
                                          document provided by the IRS,
                                          a signature or stamp or any
                                          other validation from the IRS
                                          is not needed.
    h. Other Untaxed Income............  (4) 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
                                          2015.

[[Page 36785]]

 
Income information for nontax filers...  For an individual who has not
a. Income earned from work.............   filed and, under IRS or other
b. Other Untaxed Income................   relevant taxing authority
                                          rules (e.g., the Republic of
                                          the Marshall Islands, the
                                          Republic of Palau, the
                                          Federated States of
                                          Micronesia, a U.S. territory
                                          or commonwealth or a foreign
                                          central government), is not
                                          required to file a 2015 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 2015;
                                         (b) The sources of income
                                          earned from work and the
                                          amount of income from each
                                          source for tax year 2015;
                                         (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 2015; and
                                         (2) A copy of IRS Form W-2 \2\
                                          for each source of employment
                                          income received for tax year
                                          2015 or an equivalent
                                          document.\2\
                                         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 2015 income tax return
                                          is inaccurate, the institution
                                          must request that the
                                          applicant obtain confirmation
                                          of non-filing from the IRS or
                                          other relevant taxing
                                          authority.
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 2016-2017
                                          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--
                                            (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 Assistance        (1) A statement signed by the
 Program (SNAP).                          applicant and, if the
                                          applicant is a dependent
                                          student, by one of the
                                          applicant's parents affirming
                                          that SNAP benefits were
                                          received by someone in the
                                          household during the 2014 and/
                                          or 2015 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 and, if the
                                          applicant is a dependent
                                          student, by one of the
                                          applicant's parents, 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.

[[Page 36786]]

 
                                         (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 statement from the
                                             individual receiving the
                                             child support showing the
                                             amount received; or
                                            (b) 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. An
                                          institution may not accept a
                                          student's self-certification
                                          nor the DD Form 214
                                          Certificate of Release or
                                          Discharge From Active Duty as
                                          alternative documentation.
                                         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).
                                         Verification of high school
                                          completion status is not
                                          required if the institution
                                          successfully verified and
                                          documented the applicant's
                                          high school completion status
                                          for a prior award year.
Identity/Statement of Educational        (1) An applicant must appear in
 Purpose.                                 person and present the
                                          following documentation to an
                                          institutionally authorized
                                          individual to verify the
                                          applicant's identity--

[[Page 36787]]

 
                                            (a) An unexpired 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 unexpired 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
                                         --------------------------for
                                          2016-2017.
                                         (Name of Postsecondary
                                          Educational Institution)
 
                                         -------------------------------
                                          -------
                                         (Student's Signature)
 
                                         -------------------------------
                                          -------
                                         (Date)
 
                                         -------------------------------
                                          -------
                                         (Student's ID Number)
 
                                         (2) If an institution
                                          determines that an applicant
                                          is unable to appear in person
                                          to present an unexpired valid
                                          photo identification and
                                          execute the Statement of
                                          Educational Purpose, the
                                          applicant must provide the
                                          institution with--
                                            (a) A copy of an unexpired
                                             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 that is
                                             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 --
                                          ------------------------------
                                          ---for 2016-2017.
                                         ...............................
                                         (Name of Postsecondary
                                          Educational Institution)
 
                                         -------------------------------
                                          -------
                                         (Student's Signature)
 
                                         -------------------------------
                                          -------
                                         (Date)
 
                                         -------------------------------
                                          -------
                                         (Student's ID Number)
------------------------------------------------------------------------
\1\ An institution may accept a copy of the original 2015 income tax
  return for tax filers who are--
(a) Consistent with guidance that the Secretary may provide following
  the period after the IRS processes 2015 income tax returns, unable to
  use the IRS Data Retrieval Tool or obtain a transcript from the IRS;
(b) Unable to obtain a transcript at no cost from the taxing authority
  of a U.S. territory (Guam, American Samoa, the U.S. Virgin Islands) or
  commonwealth (Puerto Rico and the Northern Mariana Islands), or a
  foreign central government that lists tax account information of the
  tax filer for tax year 2015;
(c) Individuals who filed an amended tax return with the IRS. In
  addition to the copy of the original 2015 income tax return that was
  filed with the IRS, the individual must submit the following documents
  to the institution:
1. A transcript obtained from the IRS that lists tax account information
  of the tax filer(s) for tax year 2015; and
2. A signed copy of the IRS Form 1040X that was filed with the IRS.
The copy of the 2015 income tax return must include the signature of the
  tax filer or 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.
For a tax filer who filed an income tax return other than an IRS form,
  such as a foreign or Puerto Rican tax form, the institution 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 individual who did not retain a copy of his or her 2015 tax account
  information and that information cannot be located by the IRS or other
  relevant taxing authority, must submit to the institution--
(a) Copies of all IRS Form W-2s or an equivalent document;
(b) Documentation from the IRS or other relevant taxing authority that
  indicates the individual's 2015 tax account information cannot be
  located; and
(c) A signed statement that indicates that the individual did not retain
  a copy of his or her 2015 tax account information.

[[Page 36788]]

 
\2\ An individual who is required to submit an IRS Form W-2 or an
  equivalent document but did not maintain his or her copy should
  request a duplicate from the employer who issued the original or from
  the government agency that issued the equivalent document. If the
  individual is unable to obtain a duplicate W-2 or an equivalent
  document 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 and an equivalent document 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:
     2016-2017 Application and Verification Guide.
     2016-2017 ISIR Guide.
     2016-2017 SAR Comment Codes and Text.
     2016-2017 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 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.
    Delegation of Authority: The Secretary of Education has delegated 
authority to Jamienne S. Studley, Deputy Under Secretary, to perform 
the functions and duties of the Assistant Secretary for Postsecondary 
Education.

    Dated: June 23, 2015.
Jamienne S. Studley,
Deputy Under Secretary.
[FR Doc. 2015-15782 Filed 6-25-15; 8:45 am]
 BILLING CODE 4000-01-P