FISAP Information

 

For those of you lucky enough to be involved in your Campus-Based FISAP reporting and filing process I just want to remind folks that the address to send your FISAP signature page has recently changed.  The new address is -

FISAP ADMINISTRATOR,

3130 FAIRVIEW PARK DRIVE, Suite 800

FALLS CHURCH, VA  22042

 

An email should have been sent to your financial aid administrator of record earlier this week.

And as always, if you need any assistance or additional information when filling out or filing your FISAP, don’t hesitate to contact the Campus-Based Call Center at 877-801-7168 or e-mail CBFOB@ed.gov.

Verification Documentation

ED recently posted an electronic announcement dated 8/21/12 addressing certain instances where signed paper tax returns and other documents are acceptable to use for verification in lieu of tax transcripts.  The categories listed include identity theft victims, amended tax returns, foreign countries, and certain island nations and American commonwealths.

Please note that for identity theft victims we indicate that for verification purposes documentation supporting that identity theft has occurred needs to be obtained (may be IRS Form 14039) along with a signed paper tax return.

For amended tax returns, we now indicate for verification purposes the taxpayer must provide the original signed tax return and the signed amended tax return (1040X).  Transcripts are no longer to be used to verify amended returns since we determined that the transcripts did not provide all of the information necessary for verification.

Please note that our signature requirements for paper tax returns have not changed.  For persons who have a tax professional prepare their return, instead of a copy of the return with the filer’s signature, you may accept one that has the name and Preparer Tax Identification Number (PTIN) of the preparer or has his SSN or EIN and has been signed, stamped, typed, or printed with his name and address.

 

For more information and to review all of the categories in detail please see the 8/21/12 EA - http://ifap.ed.gov/eannouncements/082112LimitedCircumstancesWhenSignedCopyofTaxReturnisAcceptable.html

Aggregate Loan Limits and Dependent Students whose Parent is denied a PLUS

If a dependent student’s parent is denied a PLUS, the dependent student can now borrow up to the annual independent student loan levels.  In this limited instance, we are now treating a dependent student as an independent student.  In fact, if you review the loan limit charts in the 12/13 FSA Handbook, Volume 3, Chapter 5 page 93 you will note that the aggregate limits for an independent student also includes dependent students whose parent is denied a PLUS loan.   

It can be a little confusing to figure out what a student can borrower if the dependent student’s parent is denied a PLUS one year but not in other years.  Remember, that whatever amounts they were able to borrow because they were considered an independent student does not count against their dependent aggregate loan limits (of course they can never exceed the overall undergrad aggregate totals).   However, whatever amounts they were able to borrow as a dependent student (i.e. 1^st year dependent student can borrow $3500 – base sub/unsub and $2000 additional unsub) would count against their dependent aggregate loan limits.

One good example a school asked was how much could a 4^th year dependent student whose parent was denied a PLUS loan borrow if they had reached their dependent undergrad aggregate loan limits of $31,000 (including $23,000 in sub).  The student in this case as a 4^th year student (and assuming the COA and EFA supported the loan amounts), could borrow up to $12,500 since they are treated as an independent student for DL purposes and can borrow against the independent aggregate loan amount of $57,500.   Remember that the $12,500 is made up of $5500 base sub/unsub and $7000 additional unsub.  If the student has used up all of his sub eligibility (as in my example) then the entire amount would be unsub aid. 

And of course no undergraduate student can borrow above the independent aggregate loan limit of $57,500.

Original Immigration Documents

I have also been getting a lot of questions from schools around our documentation requirement listed in the 12/13 FSA Handbook Vol. 1 Chapter 2 page 23 for eligible non-citizens.  If a student has to go through the paper secondary confirmation process, we state that schools must always examine and copy original immigration documents, and must keep a copy in the student’s file with the secondary confirma­tion results from the USCIS. While generally not permitted, you may legally photocopy immigration documents (such as Forms I-551 or I-94) when a person needs to prove his immigration status for a lawful purpose such as ap­plying for Federal Student Aid.  Policy is aware of schools concerns with this issue, especially around distance education, and is researching possible alternatives; however, no exceptions currently apply.

R2T4 and Modules

R2T4 and modules is probably the most common topic I get asked questions about and I just wanted to remind schools that there is some guidance out there that may help address your various issues.  For more information on R2T4 and modules please see the following – GEN-11-14, program integrity Q & A website under R2T4 (http://www2.ed.gov/policy/highered/reg/hearulemaking/2009/integrity-qa.html), 12/13 FSA HDBK Vol. 5, Chapter 1, pages 61-69 and session #45 (R2T4 and the new regulations) presented at the 2011 FSA Conference (http://www.ifap.ed.gov/presentations/2011FSAConference.html).

 

Submitted by Michelle Upchurch