[Oasfaa] Bartnicki Bulletin - FAFSA-IRS; Clock hours; FAA Access; Training; DL fees

[David Barron]

Here is more helpful information sent to the SASFAA list serve from the federal trainer, David Bartnicki.

Thanks and have a great day,

David Barron
OASFAA President 2010-2011
Executive Director of Enrollment Management
Rogers State University
1701 W. Will Rogers Blvd.
Claremore, OK 74107-3252
918.343.7852
Fax: 918.343.7598



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

Dear SASFAA,

This is probably my last message in February - where does the time go?
 

2011-2012 FAFSA-IRS Data Retrieval 

I have received several questions about income earned from work as it relates to the IRS data being imported into the FAFSA.

We do not currently retrieve the income earned from work for the student, spouse or parents.  The applicant is given the opportunity to add the income(s) earned from work to their FAFSA after they retrieve data from the IRS system.
 
However, if the parent or applicant were to leave the income earned from work fields blank (or otherwise skip them) they would receive an edit asking whether the information is correct.  So, the applicant would have the opportunity to answer the question(s) at that point as well.  Finally, the FAA reviewing the ISIR can verify this data if they see conflicting information.
 
The fields we currently pull over in the IRS Data Retrieval are as follows:
 
When the 1040 form is NOT a 1040EZ or a 1040EZ-NR:
 
*          Type of tax return filed
*          Adjusted gross income
*          Taxes paid
*          Exemptions
*          Education credits
*          IRA deductions
*          Tax-exempt interest income
*          Untaxed IRA distributions
*	   Untaxed pension 
 
 
When the 1040 form is either a 1040EZ or a 1040EZ-NR:
 
*          Type of tax return filed
*          Adjusted gross income
*          Taxes paid
*	   Exemptions
 

2012-2013 IRS Data Retrieval Updates

In addition, if you have not had a chance, please take time to read the new DCL GEN-11-03 which discusses the enhancements for 2011-2012 but also talks about modifications in the 2012-2013 FAFSA processing year.

For the 2012-2013 applicants will be directed to use the IRS retrieval process if they indicate that they filed taxes or will be sent reminders to update the FAFSA once they have filed their taxes.  

In 2012-2013, if an applicant is selected for verification, ED would no longer consider it reasonable for an institution to accept anything less reliable than direct IRS-supplied evidence for verification of income data since applicants can quickly and easily access IRS data through the FAFSA-IRS Data Retrieval process.  

Therefore, if an applicant selected for verification has not successfully transferred information from the IRS, or one who did transfer the information but then changed it, the Department expects the institution to require the applicant, and if necessary the applicant's parents, to provide an official IRS transcript of their Federal income tax information.

More updates for the FAFSA processing year 2012-2013 will be forth coming through IFAP.

FAA Access and Assets

I have received a couple of questions from schools that indicated when in FAA Access they had to provide asset information even though when the Student completed the FAFSA on the web they were not required to provide assets (questions suppressed due to student/parent indicating they do not have assets above specific threshold).

Some information I received from our system and FAFSA experts indicated: 

FAA Access reads the flag that is set on FOTW, so it knows that the student was presented with the asset threshold question.  In FAA Correction Entry, the FAA version of the asset threshold question displays, and the answer in the "Selected ISIR Value" column is "No."  As long as the FAA doesn't change the answer to "Yes" in the "Enter Correct Value" column, then the Reject 1 edit is bypassed in FAA Correction Entry just as it was in FOTW.  If the FAA changes the answer to "Yes" then the Reject 1 edit is triggered if assets remain blank.
 
Note that the FAA version of the asset threshold question only displays if the question displayed for the student in FOTW, and the label includes the threshold amount, so the FAA knows exactly what was presented to the student.

Direct Loan Origination Fees and Upfront Rebate Fees for 2011-2012

I have been informed that the origination fees and upfront rebate fees for Direct Loan sub/unsub and PLUS loans will not be changing for 2011-2012.  The fees and rates will be the same as they were for 10/11 (sub/unsub was a 1% orig fee with a .5% rebate while for PLUS there was a 4% orig fee with a 1.5% upfront rebate).

Clock hour programs

In talking to some schools about the clock-to-credit hour conversion changes, I am concerned that a key piece of the new regulations is being overlooked; namely, that ED now defines what a clock hour program is for TIV purposes.  

In the October 29, 2010 Program Integrity final federal register under 34 CFR 668.8(k), the Department formally defines when a program must be considered a clock hour program for TIV purposes.  It states: ...A program is considered to be a clock-hour program for purposes of the title IV, HEA programs if-(i) Except as provided in paragraph (k)(3) of this section, a program is required to measure student progress in clock hours when- (A) Receiving Federal or State approval or licensure to offer the program; or (B) Completing clock hours is a requirement for graduates to apply for licensure or the authorization to practice the occupation that the student is intending to pursue; (ii) The credit hours awarded for the program are not in compliance with the definition of a credit hour in 34 CFR 600.2; or (iii) The institution does not provide the clock hours that are the basis for the credit hours awarded for the program or each course in the program and, except as provided in § 668.4(e), requires attendance in the clock hours that are the basis for the credit hours awarded. (3) The requirements of paragraph (k)(2)(i) of this section do not apply to a program if there is a State or Federal approval or licensure requirement that a limited component of the program must include a practicum, internship, or clinical experience component of the program that must include a minimum number of clock hours.

I stress this change in the regulation that becomes effective 7/1/11, since there are many schools that converted clock hour programs to credit hours for the sole purpose of awarding TIV aid.  Many of those programs may now be required to be considered clock hour programs for TIV aid purposes if they fall under our new definition.  This would mean establishing proper payment periods, academic years, and disbursement procedures as required for clock hour programs.

A clock hour program under our definition CANNOT be converted to a credit hour program for TIV purposes.

I encourage all schools that have converted clock hour programs to credit hour programs to review the 10/29/10 program integrity final federal register for more information as contained in the preamble and regulation citation (http://www.ifap.ed.gov/fregisters/attachments/FR102910Final.pdf).

Regulatory Legislative Update Training (February through April)

For those attending the upcoming round of on-site Department lead regulatory update training sessions being presented throughout the country, please note that handouts will NOT be provided.  Participants must go to our recent Dear Colleague Letter ANN-11-06 and click on the link to download the materials.  Included for downloading are the participant guides for each module (6) and the daily agenda.

Please Note: The materials are available for download by anyone, even those not attending the training.

Have a great week.

David Bartnicki
Federal Training Officer
ED/FSA/Atlanta
 



  
-----------------------------------------
------------------------------------------------------------
The information contained in this message is confidential proprietary property of Nelnet, Inc. and its affiliated companies (Nelnet) and is intended for the recipient only.
Any reproduction, forwarding, or copying without the express permission of Nelnet is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to this e-mail.
------------------------------------------------------------