Posted Date: April 13, 2012
Volume: Errata and Updates for 2012-2013 FSA Handbook
2012-2013 Federal Student Aid Handbook Errata and Updates
The errata and updates below are items that were amended after the initial PDF files were posted to the Web.
For questions about the Handbook contents, you can contact the Schools Publications staff at: email@example.com.
Application and Verification Guide
Updated Files Posted December 14, 2012 - Chapter 4, P. AVG-79. We deleted the paragraph about what to do when a tax document is not available and provided guidance on the issue in a new section on AVG-80 and AVG-81.
Updated Files Posted December 14, 2012 - Chapter 4, P. AVG-79. We revised the margin note on filing an amended tax return so that it reflects our most recent guidance.
Updated Files Posted December 14, 2012 - Chapter 4, P. AVG-80 and AVG-81. We added a new section titled "When a tax return transcript is unavailable" that explains what a student or parent can do if he or she is not able to get a tax return transcript. On page 81 we deleted the related margin note that was outdated.
Updated Files Posted December 14, 2012 - Chapter 4, P. AVG-82. We added a margin note about victims of identity theft.
Updated Files Posted July 11, 2012 - Chapter 2, P. AVG-18. We clarified in the fourth paragraph that child support payments made for children in the household aren't counted on the FAFSA. This makes more explicit the longstanding guidance in the relevant margin example on the same page.
Updated Files Posted July 11, 2012 - Chapter 2, P. AVG-19. We added to the margin note on health savings accounts (HSAs) that Line 25 on the 2011 Form 1040 shows the tax-free HSA contributions.
Updated Files Posted July 11, 2012 - Chapter 2, P. AVG-25. In the third paragraph, we corrected the reference to Question 52 (formerly 53).
Updated Files Posted July 11, 2012 - Chapter 4, P. AVG-81. We included a margin note about instances when IRS data retrieval and tax return transcripts are not available.
Updated Files Posted July 11, 2012 - Chapter 4, P. AVG-82. For clarification, we added "or by a school for verification of household size or number in college" to the beginning of the third paragraph under "Updating Information."
Updated Files Posted July 11, 2012 - Chapter 4, P. AVG-82. For clarification, we reworded and added to the guidance in the last two sentences.
Updated Files Posted July 11, 2012 - Chapter 4, P. AVG-83. In the second paragraph under "Non-filers," we corrected the guidance to show that the W-2 forms must be provided in addition to, rather than in lieu of, the signed statement.
Volume 1: Student Eligibility
Updated Files Posted December 14, 2012 - Chapter 2, P. 1-30. In the fourth paragraph, the third sentence has been revised to read: "You should write the 15-digit DHS verification number that is printed in the match flag section of the SAR and ISIR in field number 7 of the G-845 form." This replaces earlier language based on a prior version of the G-845 form.
- Updated Files Posted April 13, 2012 - Chapter 1, P. 1-8. We corrected the "Ability-To-Benefit (ATB) test" section to read as follows:
Effective with the 2012-2013 award year, new students who do not have a high school diploma, or an equivalent such as a GED, and who did not complete secondary school in a homeschool setting are not eligible for Title IV funds. Such students can no longer become eligible by passing an approved "ability-to-benefit" test or by satisfactorily completing at least six credit hours or 225 clock hours of college work that is applicable to a degree or certificate offered by the student's postsecondary institution.
However, students who were enrolled in an eligible educational program of study before July 1, 2012 may continue to be considered Title IV eligible under either the ATB test or credit hour standards, as discussed in Chapter 1, Page 8 of the 2011-2012 FSA Handbook.
Volume 3: Calculating Awards and Packaging
Updated Files Posted July 27, 2012 – Chapter 7, P. 3-137. We corrected the section entitled "Crossover Periods" to read as follows:
"In general, you may choose which award year EFC to use for a student, with one exception:
when awarding FWS to a student not attending classes, the EFC for the next period of enrollment must be used."
The requirement to assign a crossover period to the award year in which the student would receive the greatest Pell award has been eliminated due to the repeal of HEA Sec 401(b)(5).
Volume 4: Processing Aid and Managing Federal Student Aid Funds
Update Files Posted November 1, 2012 – Chapter 2, P. 4-35. In the chart entitled "Heightened Cash Management," under the subsection "Cash Monitoring Payment Methods," we corrected the entry for number 1 to read as follows:
"Heightened Cash Monitoring 1 (HCM1). After a school makes disbursements to eligible students, it draws down FSA funds to cover those disbursements in the same way as a school on the advance payment method."
Updated Files Posted June 29, 2012 - Chapter 1, P. 4-17 & 4-18. In the example: "Apportioning charges when a school posts all charges to the student's account during the first payment period and the student has an FSA Loan," we updated the dates and award amounts.
Volume 5: Withdrawals and the Return of Title IV Funds
Updated Files Posted June 25, 2012 - Chapter 1, P. 5-4. We have added a clarification on when a student who remains enrolled in non-Title IV eligible courses must be considered a withdrawal.
Updated Files Posted June 25, 2012 - Chapter 1, P. 5-94. Under the heading: "Timeframe for the return of Title IV funds," the four bullets have been deleted and replaced with the following three bullets:
deposits or transfers the funds into the school’s federal funds bank account, and then awards and disburses the funds to another eligible student;
returns the funds to ED electronically using the “Refund” function in G5; or
issues a check to the Department.