What FAFSA Corrections Must Be Sent To the FPS For Reprocessing?

For a student who is not selected for verification, either the school or the student must correct any errors on the original FAFSA and submit those corrections to the FAFSA Processing System (FPS) for reprocessing, but only if those corrections would change the student's student aid index (SAI) or be used to determine the student's eligibility for Title IV aid.

For a student who is selected for verification and receiving subsidized Title IV aid, the school must make corrections and submit to the FPS for reprocessing changes to any nondollar items or to any dollar item of $25 or more. If the school is required to submit a change to any single FAFSA data element because of verification, the school must submit all changes, including dollar amounts that are below $25. This is true whether the FPS or the school selected the student or individual data elements for verification. This requirement only applies to subsidized Title IV aid recipients. See 34 CFR 668.59(a).

All other FAFSA/Institutional Student Information Record (ISIR) changes (e.g., such as address, driver's license number, etc.) that do not affect the student's SAI or that do not determine the student's Title IV eligibility do not need to be sent to the FPS for reprocessing.

For example, a student is not selected for verification and incorrectly reported his or her grade level on the FAFSA. Grade level affects the Direct Loan amount but not the student's eligibility for Title IV aid. According to guidance NASFAA has received from the U.S. Department of Education (ED), a correction does not need to be sent to the FPS for reprocessing and therefore does not require the student's signature. In this example, Title IV aid is awarded based on the grade level in the institution’s records and not on what was reported on the FAFSA/ISIR.

If the school sends to the FPS a FAFSA/ISIR correction that is not substantiated by the school's own records, the correction must be substantiated with documentation that is signed by the student or parent, as applicable, except that tax transcripts and W-2s don't require signatures.

Only the school makes the determination as to whether the correction changes the student's EFC or otherwise affects the student's Title IV eligibility. If in doubt, send the correction. 

Signature Requirements: Corrections and updates sent by a school must be based on reliable documentation in its possession that supports the changes to applicant data or signed documentation from the student or parent of a dependent student. Examples of reliable documentation include applications for admission, acceptance letters, course registration information, or academic transcripts. Examples of signed documentation from a student or parent on which corrections and updates may be based include a copy of the correction or update, student/parent statement, verification documents, or copies of tax returns or transcripts. Unlike those for the original application, these do not have to be wet signatures.

Some of the above guidance has been excerpted from the Application and Verification Guide volume of the FSA Handbook. NASFAA has confirmed other parts of the guidance with ED.

Student Aid Reference Desk: For additional information, try the Student Aid Reference Desk. 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.