Award Year: 2005-2006
Chapter: --What's New in the 2005-2006 Handbook
Section: --What's New in the 2005-2006 Handbook
Posted on 08-19-2005
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What's New in the 2005-2006 Federal Student Aid HandbookThis page lists the items that changed from last year's edition of the FSA Handbook. For questions about the Handbook contents, contact the Schools Publications staff at: fsaschoolspubs@ed.gov For information about ordering the Handbook, please see the Publications and How to Order Web page. |
Application and Verification Guide
Chapter
1 The Application Process
P. AVG-3 Some schools have required students to fill out supplemental
forms (in addition to the FAFSA) in order to apply for federal student aid.
This is not permitted, and we have added text to that effect.
P. AVG-4 We inserted the caution that students should not give their
PIN to anyone, nor should anyone ask for it, even if they plan to assist the
student with receiving aid. A Dear Colleague Letter (GEN-04-10, September 2004)
explains this further.
P. AVG-5 The margin note was changed to discuss the limited circumstances
for which one can receive a paper renewal FAFSA; most returning students will
now receive a renewal reminder rather than a paper renewal FAFSA.
Chapter 2 Filling Out the Application
P. AVG-10 We added a margin note stating that same-sex unions do
not count as marriages on the FAFSA.
P. AVG-12 We added a margin note describing how to determine the
income earned from work when values on lines 12 or 18 of the 1040 form are negative.
P. AVG-15 We noted that when a parent receives untaxed Social Security
benefits on behalf of a child who is a student, the benefits would be reported
on the parent's side of Worksheet A.
P. AVG-16 We added a margin note on the treatment of combat pay
on the FAFSA.
P. AVG-23 We added guidance under "Question 50" stating
that a student who is independent due only to marriage becomes dependent for
the next award year when divorced.
P. AVG-26 We clarified guidance regarding financial support for
children of students. Such support from anyone other than the student's parents
may be counted as support provided by the student for determining whether the
child is a dependent of the student and whether the child should be counted
in his household size.
P. AVG-27 We removed the veteran match charts in Chapter 2 that
reproduce information from the ISIR Guide because they were redundant with the
text on p. 27. We added the pertinent page references for the ISIR Guide.
P. AVG-34 We clarified the instruction at the top of the page to
state explicitly that FAAs cannot accept a faxed or copied signature for the
application.
Chapter 3 Expected Family Contribution
P. AVG-36 Because schools can no longer pay on the secondary EFC
under any circumstance, we emended the language on the top of the page to show
that, rather than use the secondary EFC, schools must correct and re-submit
an application for which the student wrongfully met the simplified needs test.
Chapter 5 Corrections, Updates, and Adjustments
p. AVG-102 We added a margin note to allay worries about the size
of IRS Publication 17. While it is a long document, we have specified the page
numbers to which you might need to refer when resolving cases of conflicting
information.
Volume 1: Student Eligibility
Throughout
this volume we removed the charts of match flags and results that were reproduced
from the ISIR Guide. We did this for a couple reasons: we could not replicate
the charts in full here, and they were often redundant with material already
presented in the body of the text.
Chapter 1 School-Determined Requirements
P. 1-3 We inserted a margin note about contacting the pertinent
state department of education to determine what is a valid high school diploma.
P. 1-7 We added a new Ability-to-Benefit test: the WorkKeys Program
assessments by American College Testing (ACT).
Chapter 2 Citizenship
P. 1-23 We corrected a statement regarding USCIS procedures. Conditional
permanent residents receive an I-551 form that is valid for two years. The text
had stated that they must file a petition with the USCIS to remove their conditional
status in the 90 days following the expiration of their I-551, but it actually
must be done in the 90 days prior to the end of the two years.
P. 1-34 We removed the summary chart of documentation because the
material in the chart should be read in full in the body of the chapter.
Chapter 3 Financial Aid History
P. 1-43 At the end of the second paragraph on the total and permanent
disability cancellation, we noted that a defaulted loan that is conditionally
discharged remains in default until it is permanently discharged at the end
of the three-year conditional period.
P. 1-43 We added a margin note explaining the meaning of "substantial
gainful activity."
Chapter 4 Social Security Administration
P. 1-50 We added an explanation of the new Master Death File check
by the CPS.
Chapter 6 Program-related Eligibility Requirements
P. 1-62 We added a margin note stating that aid administrators may
not perform a credit check on students as a condition for awarding them federal
student aid.
Pp. 1-67-70 We inserted new sections on the Leveraging Educational
Assistance Partnership (LEAP) Program and the Robert C. Byrd Honors Scholarship
Program.
Volume 2: School Eligibility and Operations
Chapter
9 Record Keeping and Disclosure
P. 2-158 We have added a discussion: What constitutes written consent
(to disclose personally identifiable information).
Chapter 10 Administrative Capability
P. 2-167 Chart of System Configurations has been updated.
Volume 4: Disbursing & Managing FSA Funds
Chapter
1 MPN & Stafford/PLUS Loan Process
P. 4-6 Discussion of PLUS MPN -- some minor deletions to eliminate
information covered elsewhere.
P. 4-7 Sidebar on COD -- revised to reflect full participation by
all schools in 05-06.
P. 4-9 Boxed text on Additional Unsubsidized Stafford: adds a condition
that does NOT make a dependent student eligible for additional Stafford funds
(school's decision not to participate in PLUS) and a condition that DOES make
the student eligible (parent documents that condition of bankruptcy filing prevents
any additional borrowing).
P. 4-12 Chart revised for clarity.
Chapter 2 Disbursing FSA Funds
P. 4-14 Titles of second and third sidebar notes -- revised for
clarity.
P. 4-28 Sidebar note on Loan Disbursements -- revised for clarity.
Also, a substantially revised and expanded discussion of "Retaking Coursework"
has been added, beginning on this page. (The "Retaking Coursework"
discussion did not appear in the 04-05 FSA Handbook, but was previously a part
of the Pell Volume of the 03-04 FSA Handbook.)
P. 4-30 Late Disbursements -- this discussion has been substantially
revised for clarity and to remove dated historical references.
P. 4-32 Late Disbursement Requests -- procedures have been revised
based on the most recent Dear Partner letter.
P. 4-35 Holding FFEL Stafford Loans for Verification -- this has
been corrected by removing the reference to interim disbursements. A school
may NOT make interim disbursements of DL/FFEL funds while waiting for verification
to be completed.
Chapter 3 Requesting and Managing FSA Funds
P. 4-38 Sidebar note on Advance Requests for Perkins Funds -- revised
to give more specific guidance on comparing available Perkins funds against
anticipated disbursements.
P. 4-39 and 4-50 Reimbursement/Cash Monitoring -- these discussions
have been revised and set apart from the main discussion, as they affect relatively
few schools.
P. 4-41 Deleted "Maintaining FSA funds in a separate account"
because the information is already presented in previous discussions.
P. 4-42 Deleted "Timely return of funds when a school does
not maintain a separate federal bank account" because this topic is covered
in Volume 5.
P. 4-44 Allowable Excess Cash Tolerances -- deleted as unnecessary
the example that formerly appeared in the third paragraph.
Volume 5: Overawards, Overpayments, and Withdrawal Calculations
Chapter
1 Overawards and Overpayments
P. 5-7 Treatment of overpayments created by inadvertent overborrowing
has been clarified.
Chapter 2 Withdrawals and the Return of Title IV Funds
P. 5-38 and 5-39 We have added two topics under Funds to include
in a Return Calculation: GEAR UP program funds and Student Support Services
grants to students.
P. 5-68-70 Percentage of Title IV aid earned for withdrawal from
a credit hour nonterm program: We describe how, if a student withdraws from
a self-paced non-term credit hour program before earning any credits, the institution
must have a reasonable procedure for projecting the completion date of the period.
Volume 6: Campus-Based Programs
General:
Addition of chapter highlights boxes at the beginning of each chapter for easy
reference to important topics.
Chapter 1 Participation, Fiscal Procedures, and Records
P. 6-18 Amended promissory note guidance to reflect ability of schools
to notify the borrower in writing in lieu of sending the original promissory
note when loan is paid off.
P. 6-24 Added guidance on carrying out Perkins Loan liquidation.
Chapter 3 Making Perkins Loans
Has been updated throughout to reflect the fact that schools are now required
to exclusively use the Perkins Master Promissory Note when awarding Perkins
Loans.
Chapter 4 Perkins Repayment, Forbearance, Deferment, and
Cancellation
P. 6-93 Updated guidance on military service cancellations, clarifying
the requirements of months and years of military service for Perkins Loan cancellation.
Chapter 5 Perkins Billing, Collection, and Default
P. 6-115 Clarified acceptable Perkins Loan rehabilitation parameters.