# Presentation: 719246

## NASFAA 2004 Federal Update

**Jeff Baker**
**Federal Student Aid**
**Dan Madzelan**
**Office of Postsecondary Education**

**President’s Budget**
**FY ’05**
**(2005-2006)**

## Title IV Program BudgetsAppropriations

## Title IV Program BudgetsAid Available

## FY 2005 Budget Request

** ****$33 Million for “Enhanced Pell Grants”**
** ****Address Campus-Based Formula Issues**
** ****FWS Community Service Reserve**
** ****Address Needs of Distance Learners**
** ****Modify “Drug Eligibility” Rule**

**FY 2005 Budget Request**
**Programmatic Changes**

## FY 2005 Budget Request

** ****Disbursement Relief for Low CDR Schools**
** ****Increase Teacher Loan Forgiveness**
** ****Increase Loan Limits for 1****st**** Year Students**
** ****Retain Variable Interest Rates**
** ****Broaden Repayment Options**
** ****Require Insurance Fee**
** ****Phase Out Above-market Special Allowance**
** ****Reserve $3 Billion for Other Changes**

**FY 2005 Budget Request**
**Programmatic Changes**

**Reauthorization**

## Reauthorization

**Reauthorization**
**House Passed**

**H.R. 438 – Teacher Recruitment and **
**	****	****Retention Act – July 9, 2003**
**H.R. 2211 – Ready to Teach Act – July 9, 2003**
**H.R. 3076 – Graduate Opportunities in Higher**
**	****	****Education Act – October 23, 2003**
**H.R. 3077 – International Studies in Higher**
**	****	****Education Act –****	****October 21, 2003**

## Reauthorization

**Reauthorization**
**In Committee**

**H.R. 3039 – Expanding Opportunities in **
**	****	****	****Higher Education Act **
**H.R. 3311 – Affordability in Higher**
**	****	****	****Education Act**
**H.R. 4283 – College Access and**
**	****	****	****Opportunity Act**

**Application Processing Statistics**

## Total FAFSA’s2001-02 – 2004-05

## 8,424,820
	2003-04 FAFSAs processed as of July 4, 2003
8,728,399
	2004-05 FAFSAs processed as of July 4, 2004

- 	**2003-04** FAFSAs processed as of July 4, 2003
**8,728,399**
- 	**2004-05** FAFSAs processed as of July 4, 2004

**That’s a 3.6% increase!**

**Application Processing Statistics****FAFSAs Processed ****2003-2004 vs 2004-2005**** **

## Electronic FAFSA’s2001-02 – 2004-05

## Application Processing StatisticsElectronic Volume2003-2004 vs 2004-2005

**5,650,086 **
**	****2003-04 FAFSAs filed electronically as of July 2, 2003**
**	****67% of all Apps**
**6,808,902 **
**	****2004-05 FAFSAs filed electronically as of July 2, 2004**
**	****78% of all Apps**

**That’s a 20.5% increase!**

**CPS Changes**

## Secondary EFC

**Primary EFC – EFC applicant is statutorily entitled to.**
**Regular EFC – Uses All data**
**Simplified Needs Test EFC– Uses All Data Except Assets**
**Auto Zero EFC – Set to zero regardless of other data**
**Secondary EFC – Calculated when the data on the application support an EFC calculation under the Simplified Needs Test (SNT) and there is sufficient data to calculate a ‘Regular” EFC.**

## Secondary EFC

**Secondary EFC will still be reported on ISIR, but –**
**May not be used to pay Title IV aid**
**If flagged on COD record, will be ignored**
**If student not eligible for SNT (or auto Zero) –**
**Corrections to records must be submitted to CPS, and**
**Payment made on resultant transaction where primary EFC will be reported.**

## SSN Match

**HEA requires match with SSA**
**Important that identifiers be accurate**
**Same as SSA**
**Identifiers flow through aid processes**
**FAFSA to CPS to ISIR to school**
**School to COD (Pell and DL) or FFEL**
**School, COD, or FFEL to P-Note**
**Lender (DL or FFEL) to Loan Records**

## SSN Match

**CPS Processing for 2004-05**
**SSN not in SSA Database – Hard Reject**
**SSN for Deceased Person – Hard Reject**
**DOB does not match SSA – Verifiable Reject**
**Name does not match SSA – “C” Flag ISIR**
**Probable Change for 2005-06**
**SSN not in SSA Database – Hard Reject**
**SSN for Deceased Person – Hard Reject**
**DOB does not match SSA – Verifiable Reject**
**Name does not match SSA – Verifiable Reject**
**Verifiable rejects become “C” Flag ISIRs **
** **

## System Requirements 

**Dear Partner Letter—**
**  ****Minimum and Optimal ****	****Requirements for Desktop PC **
**ISIRs**
**COD**
**DL**
**  ****Summer ‘04**
**  ****For 2005-2006 Processing**
**  ****Letter to School CEO???**** **

**Notes:**
Teri starts her presentation here.

## System Requirements 

_**Minimum**_**	****     ****	****	****	**_**Optimal**_
**IBM Compatible****	****	****	****	****	****Intel/AMD Compatible**
**1.2 GHz Speed****	****	****	****	****	****Pentium 4 – 2.80 GHz**
**512 MB RAM****	****	****	****	****	****	****1 GB SDRAM**
**60 GB Hard Drive****	****	****	****	****80 GB Hard Drive**
**56 Kbps Modem****	****	****	****	****	****DSL Line or High Speed**
**3.5/1.44 MB Disk Drive****	****	**** 3.5/1.44 MB Disk Drive**
**SVGA Monitor****	****	****	****	****	**** SVGA Monitor**
**Windows Keypad****	****	****	****	**** Windows Keypad**
**Laser Printer (8.5 x 11)****	****	**** Laser Printer (8.5 x 11)**
**48x CD-ROM Drive ****	****	****	**** 48x CD-ROM Drive **

**Notes:**
Teri starts her presentation here.

## System Requirements 

_**Operating Systems**_
**FSA Supports –**
**Windows 2000**
**Windows XP Professional**
**FSA Supports Until July 1, 2006 –**
**Windows 98**
**Windows 98SE**
**Windows ME**
**FSA Does Not Support –**
**Windows 95**
**Windows XP Home**

**Notes:**
Teri starts her presentation here.

**Upcoming ED**

## Upcoming ED Conferences 

**Software Developers Conference**
**	****Arlington, Virginia**
**	****	****August 19 –20**
**2004 Electronic Access Conferences**
**	****Orlando, Florida**
**	****	****November 1 to November 4**
**	****Las Vegas, Nevada**
**	****	****November 30 to December 3**
**Spring Conference**
**	****Reno, Nevada**
**	****	****March 22 to March 24**

## Recent Federal Register Notices 

** ****Jul  13  Paul Douglas Scholarships Report**
** ****Jul    8  2003-04 Deadline Date Correction**
** ****Jun 29 Javitz Fellowship Deadline**
** ****Jun 17 2005-06 Need Analysis Tables Update**
** ****May 11 Approved ATB Tests  **
** ****Mar 31 eZAudit Requirements**
** ****Mar 15 2004-05 Campus Based Deadlines**
** ****Mar 10 2003-04 Application and Pell Deadlines**

## Recent Training Announcements

**ANN-04-07 (Jul) On-Line DL, COD, and Recon **
**ANN-04-06 (Jun)  EDExpress On-Line Training**
** ****ANN-04-05 (May) Training Registration System**
** ****ANN-04-04 (May) Training Registration Down**
** ****ANN-04-03 (May) EDExpress Modules Program**
** ****ANN-04-02 (Feb)  EDExpress Modules Basics  **
** ****ANN-04-01 (Feb)****	****One-Day Training- Apps****	**

## Recent Letters – Loan and General

** ****FP-04-05 (Apr)****	**** FFEL Consolidation**
** ****GEN-04-07 (Jul)****	****Ombudsman Contact Info **
** ****GEN-04-06 (Jul)   XML Schedule**
** ****GEN-04-04 (Feb)****	**** Disaster Letter**
** ****GEN-04-03 (Feb)****	**** Return of Title IV Aid**
** ****GEN-04-02 (Jan)****	**** Education Savings**
** ****GEN-03-13 (Nov)  Consolidation Loan App**
** ****GEN-03-12 (Oct)   NSLDS Calculations  **
** ****GEN-03-11 (Sep)  Student Aid on the Web**
** ****GEN-03-08 (Jul)    Long-Term Debt**
** ****GEN-03-07 (May)  Dependency Overrides****	**

## Recent Letters-Campus Based

**  ****CB-04-09 (Jun)****	****2005-06 FISAPP**
**  ****CB-05-08 (Jun)****	****2003-04 CB Reallocation**
**  ****CB-04-07 (May)****	****Perkins Loan Cancellations**
**  ****CB-04-06 (Apr)****	****2002-03 Close Out **
**  ****CB-04-05 (Mar) ****	****2004-05 FWS C/S Waivers**
**  ****CB-04-04  (Mar)   2004-05 Final Awards**
**  ****CB-04-03 (Mar)****	****2005-06 FISAP Changes**
**  ****CB-04-02 (Jan)****	****Work Colleges Program**
**  ****CB-04-01 (Jan)****	****2004-05 Tentative Awards**

**Things to Remember and Upcoming Letters**

## Things to Remember

**NSLDS Enrollment Reporting – SSCR**
**NSLDS Transfer Monitoring**
**Return of Title IV Aid Transactions**
**Release of Credit Balances**
**Use of eNotes**
**Reporting of Foreign Gifts (DCL-95-12)**
**Uncashed Checks**
**Defaulted Perkins Loans**
**Proper Use of FSA PIN**

**IRS Match**

## “Uncertainty”

**Two Words to Remember --**

***“******Uncertainty”***

***“ ******Collaboration”***

## What is the FAFSA – IRS Match?

**A FAFSA – IRS Match would compare selected data from an applicant’s FAFSA with comparable data submitted by the taxpayer to the IRS:**
**  ****Adjusted Gross Income**
**  ****Taxes Paid**
**  ****Total Earnings from Employment**
**  ****Filing Status (e.g., single, married)**
**  ****Type of Tax Form (e.g., 1040, 1040A, ****	****1040EZ)**

## What is the Legal Status of a FAFSA – IRS Match?

-  **1998 HEA Reauthorization**
**Internal Revenue Code Section 6103 **
**  ****HR 3613 – the “Student Aid Streamlined ****	****Disclosure Act of 2003”**
**Introduced November 21, 2003**
**House Ways and Means Subcommittee on ****	****Oversight**
**Invitation to Comment**

## Challenges to Implementing a FAFSA – IRS Match?

-   **Calendar Issues**
**Tax Year and IRS Filing vs FAFSA Processing**
**Availability of Tax Data and Award Year **
**FAFSAs Received**

**Jan 1**

**April 15**
**IRS Filing Date**

**July/August**
**IRS Data Available**

## Change of Application Process Mindset

**FAFSA is a “two-step” process**
**	****File FAFSA as soon as ****	****	****	****possible**
**	****Update tax data as soon as ****	****	****returns are filed with IRS**** **
**    ****Reminder E-mails**

## Challenges to Implementing a FAFSA – IRS Match?

-   **Legal Authority Issues**
** ****Use of Contractors**
** ****Release of Actual Data vs.  “Fact  of Discrepancy” to   schools**
** ****Informing Applicant/Taxpayer**
** ****School’s Third Party Servicers**

## Challenges to Implementing a FAFSA – IRS Match?

-   **Other Issues**
**SSN Mismatches **
**Late Tax Filers**
**Changes in Marital Status**
**Amended Returns**
**Non-filers**
**Applicants from Puerto Rico**
**Applicants with Foreign Tax Returns**
**Subsequent Corrections**
**Professional Judgment Changes**

## Comments, Suggestions, Offers

**We appreciate your feedback, comments, and suggestions.  Please e-mail your thoughts and ideas to:**
**	****E-mail:**** irsmatch**_[@ed.gov](mailto:marilyn.leblanc@ed.gov)_

**Thank You**