[Federal Register Volume 83, Number 60 (Wednesday, March 28, 2018)]
[Notices]
[Pages 13266-13269]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06278]


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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 2019-2020 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 2019-2020 award year.

FOR FURTHER INFORMATION CONTACT:  Jacquelyn C. Butler, U.S. Department 
of Education, 400 Maryland Avenue SW, Room 294-10, 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 2019-2020 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.

                         LTCH QRP Quality Measures Under Consideration for Future Years
----------------------------------------------------------------------------------------------------------------
           FAFSA Information                                     Acceptable documentation
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Income information for tax filers:       (1) 2017 tax account information of the tax filer that the Secretary
a. Adjusted Gross Income (AGI)            has identified as having been obtained from the Internal Revenue
b. U.S. Income Tax Paid                   Service (IRS) through the IRS Data Retrieval Tool and that has not
c. Untaxed Portions of IRA                been changed after the information was obtained from the IRS; or
 Distributions.                          (2) A transcript 1 obtained at no cost from the IRS or other relevant
d. Untaxed Portions of Pensions.          tax authority of a U.S. territory (Guam, American Samoa, the U.S.
e. IRA Deductions and Payments.           Virgin Islands) or commonwealth (Puerto Rico and the Northern Mariana
f. Tax Exempt Interest Income             Islands), or a foreign government that lists 2017 tax account
g. Education Credits                      information of the tax filer.
Income information for tax filers with   (1) For a student, or the parent(s) of a dependent student, who filed a
 special circumstances:                   2017 joint income tax return and whose income is used in the
a. Adjusted Gross Income (AGI).           calculation of the applicant's expected family contribution and who at
b. U.S. Income Tax Paid                   the time the FAFSA was completed was separated, divorced, widowed, or
c. Untaxed Portions of IRA                married to someone other than the individual included on the 2017
 Distributions.                           joint income tax return--
d. Untaxed Portions of Pensions.         (a) A transcript obtained from the IRS or other relevant tax authority
e. IRA Deductions and Payments.           that lists 2017 tax account information of the tax filer(s); and
f. Tax Exempt Interest Income            (b) A copy of IRS Form W-2 2 for each source of 2017 employment income
g. Education Credits                      received or an equivalent document.2
                                         (2) For an individual who is required to file a 2017 IRS income tax
                                          return and has been granted a filing extension by the IRS beyond the
                                          automatic six-month extension for tax year 2017--
                                         (a) A copy of IRS Form 4868,3 ``Application for Automatic Extension of
                                          Time to File U.S. Individual Income Tax Return,'' that the individual
                                          filed with the IRS for tax year 2017;
                                         (b) A copy of the IRS's approval of an extension beyond the automatic
                                          six-month extension for tax year 2017;
                                            (c) Confirmation of nonfiling from the IRS dated on or after October
                                             1, 2018;

[[Page 13267]]

 
                                            (d) A copy of IRS Form W-2 2 for each source of 2017 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 2017.
                                         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
                                          2017 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 2017 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 filers:
    Income earned from work............  For an individual who has not filed and, under IRS or other relevant
                                          tax 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 2017 income tax return--
                                         (1) A signed statement certifying--
                                            (a) That the individual has not filed and is not required to file a
                                             2017 income tax return; and
                                            (b) The sources of 2017 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 2017 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, 2018.
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 2019-2020 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 2019-2020 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.''
High School Completion Status..........  The applicant's high school completion status when the applicant
                                          attends the institution in 2019-2020.
                                         (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;

[[Page 13268]]

 
                                            (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 3(a),
                                             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 Educational        (1) An applicant must appear in person and present the following
 Purpose.                                 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:
 
                                                             Statement of Educational Purpose
 
                                         I certify that I __________ am
                                          (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 2019-2020.
                                         (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 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 __________ am
                                          (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 2019-2020.
                                         (Name of Postsecondary Educational Institution)
                                         __________________ ______
                                         (Student's Signature) (Date)

[[Page 13269]]

 
                                         __________
                                         (Student's ID Number)
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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 2017 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 2017 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 2017 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 2017 employment income or equivalent documents; or
(b) If the individual is 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 2017; and
(c) Documentation from the IRS or other relevant tax authority that indicates the individual's 2017 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 2017 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;
     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:
     2019-2020 Application and Verification Guide.
     2019-2020 ISIR Guide.
     2019-2020 SAR Comment Codes and Text.
     2019-2020 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 website 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 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: March 23, 2018.
Frank T. Brogan,
Principal Deputy Assistant Secretary and Delegated the duties of the 
Assistant Secretary, Office of Planning, Evaluation and Policy 
Development, Delegated the duties of the Assistant Secretary, Office of 
Postsecondary Education.
[FR Doc. 2018-06278 Filed 3-27-18; 8:45 am]
BILLING CODE 4000-01-P