A school has a dependent student who is not selected for verification. As a result of the parent's income, the student is only eligible for unsubsidized loans. On the FAFSA the student reported income earned from working which exceeds the tax filing threshold. Does the school still need to require the student to file taxes before processing aid?
Yes. The student must file. This falls within the realm of conflicting information that must be resolved. Please see the following from page AVG-115 of the 2018-19 FSA Handbook:
"If your school has conflicting information concerning a student’s eligibility or you have any reason to believe his application information is incorrect, you must resolve the discrepancies before disbursing FSA funds and, as with verification, before making any PJ adjustment. If you discover discrepancies
after disbursing FSA funds, you must still reconcile the conflicting information and take appropriate action under the specific program requirements."
There is no exception for conflicting information.
For additional information, try NASFAA's Student Aid Index. It is a central hub of all the important financial aid resources you need with direct links to legislation, regulation, Dear Colleague Letters, and other ED and NASFAA references. It is updated on a rolling basis with the latest news and changes. Search Need Analysis.
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Publication Date: 6/21/2019