Financial Aid
Feb 16, 2024

What’s the U.S. Department of Education saying about processing student records?

In a recent Electronic Announcement dated February 9, 2024, the U.S. Department of Education

(referred to as the Department) has provided additional information regarding the three elements of its

FAFSA College Support Strategy. This strategy involves deploying extra staff, allocating funds for

technical assistance and support, and providing additional resources to aid colleges in promptly and

accurately processing student's financial aid.

This announcement underscores the further measures unveiled by the Department today.

Enhancing Efficiency in Student Record Processing for Educational Institutions Today, the Department of

Education is introducing measures aimed at expediting and streamlining the processing of student

records by educational institutions. These measures include:

1. Substantially reducing verification requirements: This year, the Department will markedly

decrease verification requirements while maintaining essential measures to prevent identity

fraud. Historically, the Department has subjected a larger proportion of FAFSA applicants to

verification by colleges. However, in recent times, the Department has progressively reduced

this verification rate to better focus verification efforts and ease the burden on millions of

students and thousands of schools. With the introduction of direct data exchange with the IRS,

facilitated by this year's revamped FAFSA form, the Department is receiving the majority of

income data directly from the IRS, obviating the need for further verification. This significant

reduction in verifications for this year will lessen the workload for colleges and students while

still safeguarding against fraud.

2. Temporarily suspending new routine program reviews: As part of its oversight responsibilities,

the Department routinely conducts program reviews to ensure that colleges meet its

requirements for institutional eligibility, financial responsibility, and administrative capability.

The Department will halt all new program reviews until June 2024, except for those addressing

the most serious issues such as suspected fraud or severe breaches of fiduciary duty. Institutions

undergoing ongoing program reviews can also request extensions for responding to program

reviews, reports, or requests for additional documentation. This flexibility will reduce the time

that colleges financial aid offices need to spend on producing documentation and addressing

Department inquiries, enabling them to concentrate on swiftly providing aid award offers to

students.

3. Offering additional flexibility on recertification: Currently, institutions must regularly recertify

eligibility for the Department's federal student aid programs at least 90 days before their

Program Participation Agreement (PPA) expires. The Department will waive this 90-day

requirement for schools whose PPA expires in March, June, or September 2024, allowing them

to submit a recertification application until their expiration date. This flexibility will give

institutions more time during this critical period and allow them to prioritize resources toward

ensuring students receive the aid they require.

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