[Federal Register Volume 89, Number 171 (Wednesday, September 4, 2024)]
[Notices]
[Pages 71893-71898]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19786]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF EDUCATION


Free Application for Federal Student Aid (FAFSA[supreg]) 
Information To Be Verified for the 2025-2026 Award Year

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice.

-----------------------------------------------------------------------

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 2025-2026 award year, Assistance Listing Numbers 84.007, 84.033, 
84.063, and 84.268.

FOR FURTHER INFORMATION CONTACT: Vanessa Gomez. Telephone: (202) 453-
6708. Email: [email protected].

[[Page 71894]]

    If you are deaf, hard of hearing, or have a speech disability and 
wish to access telecommunications relay services, please dial 7-1-1.

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 (VTG) in which the applicant has been placed. The VTG 
indicates which FAFSA information needs to be verified for the 
applicant and, if appropriate, for the applicant's parent(s) or spouse. 
The FAFSA Submission Summary indicates 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.
    In accordance with the Fostering Undergraduate Talent by Unlocking 
Resources for Education (FUTURE) Act, much of the applicant's tax 
return information, including information from their spouse and/or 
parents, will come directly from the IRS and will not be viewable by 
the student and other contributors. Such information that is 
transferred and not edited will essentially be verified and need no 
further verification. However, for instances where income and tax 
information cannot be obtained directly from the IRS, the applicant 
will have to manually enter the necessary information into the FAFSA, 
and that manual entry may be subject to verification.
    The following chart lists, for the 2025-2026 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 filers......  Items a through h, if
                                          transferred directly from the
                                          IRS and unchanged, do not need
                                          to be verified. When
                                          information is not transferred
                                          from the IRS, and for item i,
                                          the following documentation is
                                          sufficient for verification:
    (a) Adjusted Gross Income (AGI)         (1) A transcript \1\
                                             obtained at no cost from
                                             the IRS or other relevant
                                             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,
                                             that lists 2023 tax account
                                             information of the tax
                                             filer; or
(b) Income Earned From Work
(c) U.S. Income Tax Paid
(d) Untaxed Portions of IRA
 Distributions
(e) Untaxed Portions of Pensions            (2) A copy of the income tax
                                             return \1\ and the
                                             applicable schedules \1\
                                             that were filed with the
                                             IRS or other relevant tax
                                             authority of a U.S.
                                             territory, or a foreign
                                             government that lists 2023
                                             tax account information of
                                             the tax filer.
(f) IRA Deductions and Payments
(g) Tax Exempt Interest Income
(h) Education Credits                       (3) If item d or e contains
                                             a rollover, a signed
                                             statement confirming the
                                             amount of the rollover in
                                             the untaxed pension or IRA
                                             distribution. Note that
                                             even if d or e are
                                             transferred as FTI,
                                             rollovers still need to be
                                             verified as they are
                                             manually entered.
(i) Foreign Income Exempt from Federal
 Taxation
Income information for tax filers with
 special circumstances.
(a) Adjusted Gross Income (AGI)          (1) For a student, or the
                                          parent(s) of a dependent
                                          student, who filed a 2023
                                          joint income tax return and
                                          whose income is used in the
                                          calculation of the applicant's
                                          student aid index and who at
                                          the time the FAFSA was
                                          completed was separated,
                                          divorced, widowed, or married
                                          to someone other than the
                                          individual included on the
                                          2023 joint income tax return--
(b) Income Earned from Work
(c) U.S. Income Tax Paid                    (a) A transcript \1\
                                             obtained from the IRS or
                                             other relevant tax
                                             authority that lists 2023
                                             tax account information of
                                             the tax filer(s); or
(d) Untaxed Portions of IRA
 Distributions
(e) Untaxed Portions of Pensions
(f) IRA Deductions and Payments             (b) A copy of the income tax
                                             return \1\ and the
                                             applicable schedules \1\
                                             that were filed with the
                                             IRS or other relevant tax
                                             authority that lists 2023
                                             tax account information of
                                             the tax filer(s); and
(g) Tax Exempt Interest Income
(h) Education Credits
(i) Foreign Income Exempt from Federal      (c) A copy of IRS Form W-2
 Taxation                                    \2\ for each source of 2023
                                             employment income received
                                             or an equivalent
                                             document.\2\
                                         (2) For an individual who is
                                          required to file a 2023 IRS
                                          income tax return and has been
                                          granted a filing extension by
                                          the IRS beyond the automatic
                                          six-month extension for tax
                                          year 2023--
                                            (a) A signed statement
                                             listing the sources of any
                                             2023 income and the amount
                                             of income from each source;
                                            (b) A copy of the IRS's
                                             approval of an extension
                                             beyond the automatic six-
                                             month extension for tax
                                             year 2023; \3\
                                            (c) A copy of IRS Form W-2
                                             \2\ for each source of 2023
                                             employment income received
                                             or an equivalent document;
                                             \2\ and

[[Page 71895]]

 
                                            (d) If self-employed, the
                                             signed statement must
                                             indicate the amount of
                                             estimated AGI and U.S.
                                             income tax paid for tax
                                             year 2023.
                                            (3) If d or e contains a
                                             rollover, a signed
                                             statement confirming the
                                             amount of the rollover in
                                             the untaxed pension or IRA
                                             distribution. Note that
                                             even if d or e are
                                             transferred as FTI,
                                             rollovers still need to be
                                             verified as they are
                                             manually entered.
                                         Note: An institution may
                                          require that, after the income
                                          tax return is filed, an
                                          individual granted a filing
                                          extension beyond the automatic
                                          6-month extension submit tax
                                          information by obtaining a
                                          transcript \1\ from the IRS,
                                          or by submitting a copy of the
                                          income tax return \1\ and the
                                          applicable schedules \1\ that
                                          were filed with the IRS that
                                          lists 2023 tax account
                                          information. When an
                                          institution receives such
                                          information, it must be used
                                          to reverify the income and tax
                                          information reported on the
                                          FAFSA.
                                         (4) For an individual who was
                                          the victim of IRS tax-related
                                          identity theft--
                                             A copy of the
                                             signed 2023 income tax
                                             return \1\ and applicable
                                             schedules \1\ the
                                             individual filed with the
                                             IRS; and
                                             An IRS 4674C letter
                                             (a letter from the IRS
                                             acknowledging the identity
                                             theft) or a statement
                                             signed and dated by the tax
                                             filer indicating that he or
                                             she was a victim of IRS tax-
                                             related identity theft and
                                             the IRS is aware of it.
                                         (5) For an individual who filed
                                          an amended income tax return
                                          with the IRS, a signed copy of
                                          the IRS Form 1040X that was
                                          filed with the IRS for tax
                                          year 2023 or documentation
                                          from the IRS that include the
                                          change(s) made to the tax
                                          filer's 2023 tax information,
                                          in addition to one of the
                                          following--
                                            (a) Income and tax
                                             information from the IRS on
                                             an ISIR record with all tax
                                             information from the
                                             original tax return;
                                            (b) A transcript obtained
                                             from the IRS that lists
                                             2023 tax account
                                             information of the tax
                                             filer(s); or
                                            (c) A signed copy of the
                                             2023 IRS Form 1040 and the
                                             applicable schedules that
                                             were filed with the IRS.
Income information for non-tax filers..  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 2023 income
                                          tax return--
Income Earned from Work
                                            (1) A signed and dated
                                             statement certifying--
                                            (a) That the individual is
                                             not required to file a 2023
                                             income tax return; and
                                            (b) The sources and amounts
                                             of earnings, other income,
                                             and resources that
                                             supported the individual(s)
                                             for the 2023 tax year;
                                            (2) For individuals without
                                             a Social Security number
                                             (SSN), Individual Taxpayer
                                             Identification Number
                                             (ITIN), or Employer
                                             Identification Number
                                             (EIN), a signed and dated
                                             statement certifying that
                                             they do not have an SSN,
                                             ITIN, or EIN;
                                            (3) A copy of IRS Form W-2
                                             \2\ for each source of 2023
                                             employment income received
                                             or an equivalent document;
                                             \2\ and
                                            (4) Except for dependent
                                             students, verification of
                                             non-filing \4\ for
                                             individuals who would file
                                             a return with a relevant
                                             tax authority other than
                                             the IRS dated on or after
                                             October 1, 2024.
                                         Note: The collection of
                                          documentation to verify income
                                          earned from work is also used
                                          to determine if the applicant
                                          (and the applicable spouse or
                                          parent) was required to file a
                                          U.S. income tax return for the
                                          2023 tax year.
Family Size                              Since family size is based on
                                          the number of individuals
                                          listed and claimed on the IRS
                                          tax return, if transferred
                                          directly from the IRS and
                                          unchanged, family size does
                                          not need to be verified.
                                          However, when information is
                                          not transferred from the IRS,
                                          or if the applicant updated
                                          their family size when
                                          presented with the opportunity
                                          to do so on their FAFSA, the
                                          following documentation is
                                          sufficient for verification:
                                         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
                                          family member for the 2025-
                                          2026 award year and the
                                          relationship of that family
                                          member to the applicant.
                                         Note: Verification of family
                                          size is not required if--

[[Page 71896]]

 
                                             For a dependent
                                             student, the family 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 and the parents are
                                             married, remarried or
                                             unmarried and living
                                             together; or
                                             For an independent
                                             student, the family 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 and the applicant is
                                             married or remarried; or
                                             The applicant
                                             manually updated their
                                             family size and the number
                                             is the same as the family
                                             size derived from data
                                             transferred directly from
                                             the IRS.
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:
                                            (a) An unexpired, valid,
                                             government-issued photo
                                             identification \5\ 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 2025-2026.
                                         (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
                                          government-issued 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,\5\
                                             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 2025-2026.
                                         (Name of Postsecondary
                                          Educational Institution)
                                         (Student's
                                          Signature)___(Date)__
                                         (Student's ID Number)
------------------------------------------------------------------------
\1\ This footnote is applicable whenever an income tax return, the
  related schedules, or transcript is mentioned in the above chart.
The copy of the 2023 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 2023 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 2023 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 2023; and
c. Documentation from relevant tax authorities other than the IRS that
  indicates the individual's 2023 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 2023 tax account information.

[[Page 71897]]

 
\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, 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\ If an individual is unable to obtain verification of non-filing from
  a relevant tax authority and, based upon the institution's
  determination, it has no reason to question the student's or family's
  good-faith effort to obtain the required documentation, the
  institution may accept a signed statement certifying that the
  individual attempted to obtain the verification of non-filing from the
  relevant tax authority and was unable to obtain the required
  documentation.
\5\ 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.

    The individual FAFSA items that an applicant must verify are based 
upon the Verification Tracking Group to which the applicant is assigned 
as outlined in the following chart.

------------------------------------------------------------------------
                                                      FAFSA information
 Verification tracking flag       Verification         required to be
                               tracking group name        verified
------------------------------------------------------------------------
V1..........................  Standard              Tax Filers
                               Verification Group.   Adjusted
                                                     Gross Income.
                                                     Income
                                                     Earned From Work.
                                                     U.S. Income
                                                     Tax Paid.
                                                     Untaxed
                                                     Portions of IRA
                                                     Distributions.
                                                     Untaxed
                                                     Portions of
                                                     Pensions.
                                                     IRA
                                                     Deductions and
                                                     Payments.
                                                     Tax Exempt
                                                     Interest Income.
                                                     Education
                                                     Tax Credits.
                                                     Foreign
                                                     Income Exempt from
                                                     Federal Taxation.
                                                    Non-Tax Filers
                                                     Income
                                                     Earned from Work.
                                                    Tax Filers and Non-
                                                     Tax Filers
                                                     Family
                                                     Size.
V2..........................  Reserved............  N/A.
V3..........................  Reserved............  N/A.
V4..........................  Custom Verification    Identity/
                               Group.                Statement of
                                                     Educational
                                                     Purpose.
V5..........................  Aggregate             Tax Filers
                               Verification Group.   Adjusted
                                                     Gross Income.
                                                     Income
                                                     Earned From Work.
                                                     U.S. Income
                                                     Tax Paid.
                                                     Untaxed
                                                     Portions of IRA
                                                     Distributions.
                                                     Untaxed
                                                     Portions of
                                                     Pensions.
                                                     IRA
                                                     Deductions and
                                                     Payments.
                                                     Tax Exempt
                                                     Interest Income.
                                                     Education
                                                     Tax Credits.
                                                     Foreign
                                                     Income Exempt from
                                                     Federal Taxation.
                                                    Non-Tax Filers
                                                     Income
                                                     Earned from Work.
                                                    Tax Filers and Non-
                                                     Tax Filers
                                                     Family
                                                     Size.
                                                     Identity/
                                                     Statement of
                                                     Educational
                                                     Purpose.
V6..........................  Reserved............  N/A.
------------------------------------------------------------------------

Other Sources for Detailed Information

    We provide a more detailed discussion on the verification process 
in the following resources that will be available on the Knowledge 
Center web page at https://fsapartners.ed.gov/knowledge-center:
     2025-2026 Application and Verification Guide.
     2025-2026 FAFSA Specifications Guide: Volume 6--ISIR 
Guide, Volume 7--Comment Codes.
     2025-2026 COD Technical Reference.
     Program Integrity Information--Questions and Answers on 
Verification at www2.ed.gov/policy/highered/reg/hearulemaking/2009/verification.html.
    Accessible Format: On request to the program contact person listed 
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities 
can obtain this document in an accessible format. The Department will 
provide the requestor with an accessible format that may include Rich 
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file, 
braille, large print, audiotape, or compact disc or other accessible 
format.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations at www.govinfo.gov. At this site you can view this 
document, as well as all other documents of this Department

[[Page 71898]]

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, 1070b-1070b-4, 1087a-1087j, and 
1087-51 through 1087-58.

Nasser H. Paydar,
Assistant Secretary, Office of Postsecondary Education.
[FR Doc. 2024-19786 Filed 9-3-24; 8:45 am]
BILLING CODE 4000-01-P