What Are the Requirements For Implementing Provisional Independent Student Status For 2023-24?

NASFAA has confirmed with the U.S. Department of Education (ED) that schools must reach out to all dependent students who do not provide parental data on the FAFSA (regardless of reason), inform them about the procedures for requesting a dependency override using professional judgment (PJ), and collect the necessary documentation. This requirement already exists, as noted under "Special Circumstance Flag" guidance in The ISIR Guide.

ED previously indicated that provisional independent student status would be implemented effective with the 2024-25 award year; however, that is only partially true according to Dear Colleague Letter GEN-22-15. The FAFSA Simplification Act specifies that ED must calculate an estimated student aid index (SAI) and estimated Federal Pell Grant when a student indicates on the FAFSA that they have unusual circumstances that could lead to a dependency override. ED indicated that it will not implement the systems changes needed on their end to accommodate this until 2024-25. In the meantime, ED will provide improved help text on the FAFSA.

For the 2023-24 award year, dependent students who do not provide parental data on the FAFSA will not have an expected family contribution (EFC) or estimated Pell amount on their Institutional Student Information Record (ISIR). Schools are required to comply with the institutional requirements under the law.

Institutional Procedures: Under HEA 479A(c) [20 USC 1087TT(c)(2)(B)] and GEN-22-15, upon receiving the accepted student's FAFSA, the aid office must:

• Notify the student [within a reasonable time defined by the school] of the institution's process, requirements, and timeline for a PJ adjustment that will result in a review of the student's request for a dependency override within a reasonable timeframe after the student completes the FAFSA;
• Provide the student with a final determination of the student's dependency status and Title IV aid offer as soon as practicable after all requested documentation is provided;
• Retain all documents related to the dependency override, including documented interviews, for at least three years after the student's last enrollment, and shall abide by all other Title IV recordkeeping requirements; and
• Presume that any student who has obtained a dependency override for any preceding award year at an institution of higher education to be independent for each subsequent award year at the same institution unless the student informs the institution that circumstances have changed, or the institution has specific conflicting information about the student's independence.

If a student pursues provisional independent student status and is not determined to be an independent student by a financial aid administrator, such student shall only be eligible for a Direct Unsubsidized Loan for that award year unless such student subsequently completes the FAFSA as a dependent student. See AskRegs Knowledgebase Q&A, If a Student's Parents Refuse To Provide Support, How Does the Student Complete the FAFSA To Borrow a Direct Unsubsidized Loan?

If the dependency override is approved, the school is required to carry that decision forward to future award years without collecting documentation unless the student reaches out to the school and indicates his, her, or their circumstances have changed.

Documentation: Under HEA 479A(a)(2) [20 USC 1087TT(a)(2)], documentation must substantiate the special or unusual circumstances of an individual student and may include, but is not limited to:

• A documented interview between the student and the financial aid administrator;
• Submission of a court order or official federal or state documentation that the student or the student's parents or legal guardians are incarcerated in any federal or state penal institution;
• A documented phone call or a written statement, which confirms the specific unusual circumstances with:
  • A child welfare agency authorized by a state or county,
  • A tribal welfare authority or agency,
  • An independent living case worker, such as a case worker who supports current and former foster youth with the transition to adulthood, or
  • A public or private agency, facility, or program servicing the victims of abuse, neglect, assault, or violence, which may include domestic violence;
• A documented phone call or a written statement from an attorney, a guardian ad litem, or a court-appointed special advocate, or a person serving in a similar capacity which confirms the specific unusual circumstances and documents the person's relationship to the student;
• A documented phone call or written statement from a TRIO or Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR-UP) representative, which confirms the specific unusual circumstances and documents the representative's relationship to the student;
• Documents, such as utility bills or health insurance documentation, that demonstrate a separation from parents or legal guardians;
• In the absence of documentation described here, other documentation the financial aid administrator determines is adequate to confirm the unusual circumstances; or
• Supplementary information, as necessary, about the financial status or personal circumstances of eligible applicants as it relates to the special circumstances or unusual circumstances based on which the applicant is requesting an adjustment.

For 2024-25 implementation, see AskRegs Q&A, What Are the Requirements For Implementing Provisional Independent Student Status For 2024-25?

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