[Federal Register Volume 82, Number 86 (Friday, May 5, 2017)]
[Notices]
[Pages 21204-21208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-09167]


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DEPARTMENT OF EDUCATION


Free Application for Federal Student Aid (FAFSA[supreg]) 
Information To Be Verified for the 2018-2019 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 2018-2019 award year.

FOR FURTHER INFORMATION CONTACT: Jacquelyn C. Butler, U.S. Department 
of Education, 400 Maryland Avenue SW., Room 6W232, Washington, DC 
20202. Telephone: (202) 453-6088.
    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: If the Secretary selects an applicant for 
verification, the applicant's Institutional Student Information Record 
(ISIR) includes flags that indicate (1) that the applicant has been 
selected by the Secretary for verification and (2) the Verification 
Tracking Group in which the applicant has been placed. The Verification 
Tracking Group indicates which FAFSA information needs to be verified 
for the applicant and, if appropriate, for 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 contact the institution for 
further instructions for completing the verification process.
    The following chart lists, for the 2018-2019 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, under Sec.  668.57, be provided to an institution for that 
information to be verified.

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

[[Page 21205]]

 
Income information for tax     (1) For a student, or the parent(s) of a
 filers with special            dependent student, who filed a 2016
 circumstances.                 joint income tax return and whose income
a. Adjusted Gross Income        is 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 2016
 Pensions.                      joint income tax return--
e. IRA Deductions and          (a) A transcript obtained from the IRS or
 Payments.                      other relevant tax authority that lists
f. Tax Exempt Interest Income   2016 tax account information of the tax
g. Education Credits.........   filer(s); and
                               (b) A copy of IRS Form W-2 \2\ for each
                                source of 2016 employment income
                                received or an equivalent document.\2\
                               (2) For an individual who is required to
                                file a 2016 IRS income tax return and
                                has been granted a filing extension by
                                the IRS beyond the automatic six-month
                                extension for tax year 2016--
                               (a) A copy of IRS Form 4868,\3\
                                ``Application for Automatic Extension of
                                Time to File U.S. Individual Income Tax
                                Return,'' the individual filed with the
                                IRS for tax year 2016;
                                 (b) A copy of the IRS's approval of an
                                  extension beyond the automatic six-
                                  month extension for tax year 2016;
                                 (c) Confirmation of nonfiling from the
                                  IRS dated on or after October 1, 2017;
                                 (d) A copy of IRS Form W-2 \2\ for each
                                  source of 2016 employment income
                                  received or an equivalent document;
                                  \2\ and
                                 (e) If self-employed, a signed
                                  statement certifying the amount of AGI
                                  and U.S. income tax paid for tax year
                                  2016.
                               Note: An institution may require that,
                                after the income tax return is filed, an
                                individual granted a filing extension
                                beyond the automatic six-month extension
                                submit tax information using the IRS
                                Data Retrieval Tool or by obtaining a
                                transcript from the IRS that lists 2016
                                tax account information. When an
                                institution receives such information,
                                it must be used to reverify the FAFSA
                                information included on the transcript.
                               (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.
                               (4) For an individual who filed an
                                amended tax return with the IRS--
                                 (a) A transcript obtained from the IRS
                                  that lists 2016 tax account
                                  information of the tax filer(s); and
                                 (b) A signed copy of the IRS Form 1040X
                                  that was filed with the IRS.
------------------------------------------------------------------------
Income information for nontax  For an individual who has not filed and,
 filers.                        under IRS or other relevant tax
Income earned from work......   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 government),
                                is not required to file a 2016 income
                                tax return--
                               (1) A signed statement certifying--
                                 (a) That the individual has not filed
                                  and is not required to file a 2016
                                  income tax return; and
                                 (b) The sources of 2016 income earned
                                  from work and the amount of income
                                  from each source;
                               (2) A copy of IRS Form W-2 \2\ for each
                                source of 2016 employment income
                                received or an equivalent document; \2\
                                and
                               (3) Except for dependent students,
                                confirmation of nonfiling from the IRS
                                or other relevant tax authority dated on
                                or after October 1, 2017.
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 for the 2018-2019 award year 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 2018-2019 award
                                year in a program that leads to a degree
                                or certificate and the name of that
                                educational institution.

[[Page 21206]]

 
                               (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.''
------------------------------------------------------------------------
High School Completion Status  The applicant's high school completion
                                status when the applicant attends the
                                institution in 2018-2019.
                               (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 complete high school,
                                  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 such 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 (e.g., DD Form 214 Certificate of
                                Release or Discharge From Active Duty
                                that indicates the individual is a high
                                school graduate or equivalent).
                               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
                                (e.g., high school transcripts
                                maintained in the admissions office) if
                                the documentation meets the criteria
                                outlined above.
                               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          (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--
                                 (a) An unexpired valid government-
                                  issued photo identification \4\ such
                                  as, but not limited to, a driver's
                                  license, non-driver's identification
                                  card, other State-issued
                                  identification, or U.S. 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:

[[Page 21207]]

 
                                    Statement of Educational Purpose
                               I certify that I __________
                                (Print Student's Name)
                               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 2018-2019.
                               (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 instituton with--
                                 (a) A copy of an unexpired valid
                                  government-issued photo identification
                                  \4\ such as, but not limited to, a
                                  driver's license, non-driver's
                                  identification card, other State-
                                  issued identification, or U.S.
                                  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)
                               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 2018-2019.
                               (Name of Postsecondary Educational
                                Institution)
                               __________________ ______
                               (Student's Signature) (Date)
                               __________
                               (Student's ID Number)
------------------------------------------------------------------------
\1\ In lieu of obtaining a transcript whenever mentioned in the above
  chart, an institution may accept from the tax filer a copy of the 2016
  income tax return that was submitted to the IRS or other tax authority
  only--
(a) When the Secretary issues guidance permitting such submission; or
(b) When the tax 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 government does not provide the
  required information at no charge to the tax filer.
The copy of the 2016 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 2016 tax account
  information and for whom that information cannot be located by the IRS
  or other relevant tax authority, must submit to the institution--
(a) Copies of all IRS Form W-2s for each source of 2016 employment
  income or equivalent documents; or
(b) If self-employed or filed an income tax return with a government of
  a U. S. territory or commonwealth, or a foreign government, a signed
  statement certifying the amount of AGI and income taxes paid for tax
  year 2016; and
(c) Documentation from the IRS or other relevant tax authority that
  indicates the individual's 2016 tax account information cannot be
  located; and
(d) A signed statement that indicates that the individual did not retain
  a copy of his or her 2016 tax account information.
\2\ An individual who is required to submit an IRS Form W-2 or an
  equivalent document but did not maintain a 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, or an equivalent document, is not
  available in a timely manner.
\3\ For an individual who was called up for active duty or for
  qualifying National Guard duty during a war or other military
  operation or national emergency, in lieu of IRS Form 4868, an
  institution must accept a statement from the individual certifying
  that he or she has not filed an income tax return or a request for a
  filing extension because of that service.
\4\ An unexpired valid government-issued photo identification is one
  issued by the U.S. government, any of the 50 States, the District of
  Columbia, the Commonwealth of Puerto Rico, a federally recognized
  American Indian and Alaska Native Tribe, American Samoa, Guam, the
  Virgin Islands, the Commonwealth of the Northern Mariana Islands, the
  Republic of the Marshall Islands, the Federated States of Micronesia,
  or the Republic of Palau.

Verification Requirements for Individuals Who Are Eligible for an Auto 
Zero Expected Family Contribution (EFC)

    Only the following FAFSA/ISIR information must be verified:
    For dependent students--
     The parents' AGI if the parents were tax filers;
     The parents' income earned from work if the parents were 
nontax filers; and
     The student's high school completion status and identity/
statement of educational purpose, if selected.
    For independent students--
     The student's and spouse's AGI if they were tax filers;
     The student's and spouse's income earned from work if they 
were nontax filers;

[[Page 21208]]

     The student's high school completion status and identity/
statement of educational purpose, if selected; and
     The number of household members to determine if the 
independent student has one or more dependents other than a spouse.

Other Sources for Detailed Information

    We provide a more detailed discussion on the verification process 
in the following resources:
     2018-2019 Application and Verification Guide.
     2018-2019 ISIR Guide.
     2018-2019 SAR Comment Codes and Text.
     2018-2019 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.

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


    Dated: May 2, 2017.
Lynn B. Mahaffie,
Acting Assistant Secretary for Postsecondary Education.
[FR Doc. 2017-09167 Filed 5-4-17; 8:45 am]
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