Application Processing System Update

1. Application Processing System Update Shamarli Kollock Misty Parkinson July 18, 2011 (NASFAA Conference)

2. Application Processing Statistics Total Filers through Week 27

3. Application Processing Statistics • The increase in applications completed by independent students is nearly double the increase of applications completed by dependent students. • Applications by independent students in 2011-2012 have increased nearly 70% when compared to 2010-2011 rates, while applications by dependent students are up 37% this year over last.

4. Application Processing Statistics • Nationally, applications have increased by 12% for families whose income level is greater than $41K compared to an increase of 7% for families whose income level is less than $41K. • Ex. In California, applications from families earning more than $41K are up 20.3%, while applications from families earning less than $41K have increased by 12%. 

5. Application Simplification In January we deployed updates to the online application experience intending to provide a more intuitive and customized experience for each applicant. How Are We Doing?

6. Application Simplification American Customer Satisfaction Index ACSI is a national indicator of customer evaluations of the quality of products and services available to U.S. household consumers

7. Application Simplification American Customer Satisfaction Index FAFSA Score: Jan 1, 2011 –July 8, 2011 Customer Satisfaction Index – • 89 based on 15,455 respondents • Up 3 points from 86 in 2010-2011 • Significantly higher than other Federal Government websites, who had an overall ACSI score of 75

8. Application Simplification FOTW Completion Time 38%

9. Recent process changes

10. Social Security Process Change • On June 25, 2011 the Social Security Administration (SSA) implemented new guidelines for assigning Social Security Numbers (SSNs).  • SSA will begin assigning SSNs in previously unused ranges, including the ranges beginning with ‘7’ or ‘8’.

11. SSA Process Change Impact • Does have impact on the application process  • The FSA system(s) had utilized the previously unassigned range for some students (ex. Pacific Islanders) and the application system had also been developed to identify SSN ranges that were not considered valid SSN values (ex. the ‘7’ range of SSNs). Alert! If you have recently been issued a Social Security Number, you may encounter an error when you try to start your FAFSA. If this occurs, contact the Federal Student Aid Information Center at 1-800-433-3243 for additional instructions on how to complete your FAFSA.

12. Pacific Islander students previously assigned an ‘888’ pseudo-SSN by the CPS system • Pacific Islander students that previously applied for aid were assigned a pseudo ‘888’ SSN by FSA in order to allow them to complete the FAFSA.  • These students will be able to continue to use the current processes since they are already in our system. The process will not change for these students until 10/23/2011.

13. Pacific Islander students previously assigned an ‘888’ pseudo-SSN by the CPS system • On 10/23/2011, we will convert all Pacific Islander records from the 2004-2005 cycle through the 2011-2012 cycle to a new pseudo-SSN range starting with ‘666’ (instead of ‘888’). • For all Pacific Islander records from the 2010-2011 and 2011-2012 cycles (submitted through October), we will also system-generate new SAR/ISIR transactions. • Monitor IFAP for final details on this reprocessing.

14. Students randomly assigned a new SSN by the SSA who are not Pacific Islanders • After June 25th, students may be randomly assigned a new SSN that begins with a seven ‘7’ or an ‘8’. • Until 10/23/2011 these students will not be able to complete their initial FAFSA using FAFSA on the Web.  • These students can complete a paper FAFSA in the interim. • After the paper FAFSA has been processed, these students will be able to interact with our system as they normally would, including using FAFSA on the Web (still need to have applied for a PIN).

15. Students randomly assigned a new SSN by the SSA which begins with ‘888’ • After June 25th, students may be randomly assigned a new SSN that begins with ‘888’. • Until 10/23/2011 these students will not be able to complete their initial FAFSA using FAFSA on the Web.  • These students may be able to submit a paper FAFSA depending on the full SSN assigned. • These students should be directed to the Federal Student Aid Information Center for a complete determination of how they should proceed.

16. IFAP Guidance • 2011-2012 FAFSA Submission Guidance for Students Impacted by New SSA Guidelines • http://ifap.ed.gov/eannouncements/070811FAFSAGuidanceStudentsSSAGuidelines1112.html

17. 2012-2013 Application changes

18. Paper FAFSA • No data element changes • Minor wording changes to some instructions • Application materials scheduled for posting in FederalRegister in early August

19. “Smarter” Search Capabilities • Federal School Code and High School Search • Search criteria more user-friendly and logical • Aliases and abbreviations will be recognized: • U.S. Postal Service standards • Top ranked schools on FAFSA on the Web • Common abbreviations found in the current databases • Common alias provided by surveyed FAAs and/or FSA • Commonly misspelled words

20. FSC Search Design Update

21. High School Question • In 2011-2012, the high school question was added (Q27). • Any student that was presented the question in 2011-2012 will be presented the question again and have the opportunity to search the database with the “smarter” search function.

22. Gender Question Edit • While the gender question is not required, it is used to determine which applicants need to be matched with the Selective Service. • To provide an extra reminder to applicants, a warning edit will display in FAFSA on the Web if the question is not answered.

23. IRS Data Retrieval Tool 2011-2012 Statistics • January 30, 2011 – July 2011 • IRS Data Transferred • Initial FAFSA -- 2,617,428 • FAFSA Corrections -- 334,306

24. IRS Data Retrieval Tool 2011-2012 Statistics

25. IRS Data Retrieval Tool • Tentative - February 1st deployment for 2012-2013 • The IRS DRT process will be enhanced to more effectively encourage users to link to and transfer data from the IRS. • More applications will have more accurate data, which will contribute to increased accuracy in awarding aid.

26. IRS Data Retrieval Tool 2011-2012 FAFSA on the Web relies on the applicant’s determination of whether the IRS DRT should be used. 2012-2013 FAFSA on the Web will include logic to make the determination for the applicant.

27. Confirmation Page IRS Data Retrieval Tool • Upon submission, reminds students that the IRS DRT option is the preferred method of providing tax information and they can return when their application has been processed to use the tool. • Customized messaging displays when the student and/or parent was eligible to use the IRS DRT and didn’t, or the student and/or parent indicated “Will file taxes”

28. Income Estimator Notifications IRS Data Retrieval Tool • After the April 15th IRS tax filing deadline, students and/or parents will receive e-mail reminders to update the student’s FAFSA with filed tax information. • Messaging encourages the use of the IRS DRT if the option is available in FAFSA on the Web.

29. IRS DRT Eligible Filer Notifications IRS Data Retrieval Tool • Students and parents who were eligible to use the IRS DRT but didn’t will receive an e-mail notification encouraging them to return to FAFSA on the Web and use the tool. • E-mails will be sent beginning on April 1, 2012, with subsequent messages sent every 45 days until mid-September, and then every 60 days until the end of the cycle. E-mails will only be sent once per student/parent. 

30. Updated IRS Request Flags • 00 = Student/Parent was ineligible to use the IRS Data Retrieval Tool and was therefore not presented with the option to use it in FAFSA on the Web • 01 = Student/Parent was presented with the option to use the IRS Data Retrieval Tool in FAFSA on the Web and elected to use it, but did not transfer IRS data into the FAFSA • 02 = IRS data for the student/parent was transferred from the IRS and was not changed by the user prior to submission of an application or correction • 03 = IRS data for the student/parent was transferred from the IRS and changed by the user prior to submission of an application or correction • 04 = IRS data for the student/parent was transferred from the IRS and then changed by the user on a subsequent transaction • 05 = Student/parent was presented with the option to use the IRS Data Retrieval Tool in FAFSA on the Web, but did not elect to use it • 06 = IRS data for the student was transferred from the IRS, but a subsequent change made the student/parent ineligible to use the IRS Data Retrieval Tool • blank = IRS Data Retrieval Tool not available in the application method utilized by the student/parent(i.e., paper FAFSA, EDE, or FAA Access)

31. Asset Threshold Question • Added to FAFSA on the Web in 2011-2012 • Independent students and parents of dependent students that meet certain criteria are presented with the asset threshold question to determine if asset net worth must be reported and used in the EFC calculation. Question displays if the student: • Is not eligible for an automatic zero EFC or simplified needs calculation, and • Reports a state of legal residence that allows students to skip income and asset questions

32. Asset Threshold Question 2011-2012 2012-2013 Comment codes deleted Response to asset threshold question provided on ISIR record layout, Student Inquiry, and ISIR Compare • Comment codes are used to notify schools when the asset threshold question was displayed to the applicant and the response is “No”

33. Need Analysis Automatic Zero EFC –Income Threshold • For 2012-2013, increases to $32,000 or less • $31,000 or less for 2011-2012

34. Verification Tool • Disabled for 2012-2013

35. Marital Status Updates • A regulation change allows an institution, at its discretion, to require an applicant to update his/her marital status, even if it results in a change in the applicant's dependency status, if the institution determines the update is necessary to address an inequity or to reflect more accurately the applicant's ability to pay. • Students can use FAFSA on the Web to update their marital status after submission of their FAFSA • An EFC will not be calculated • Reject 21 will be set • Only an FAA can override the reject

36. Homeless Youth Determination • A student is eligible for homeless youth status if he/she meets the homeless definition and was determined to be homeless by his/her high school or school district homeless liaison, the director of a runaway or homeless youth center, or HUD. • Students who meet this criteria are independent.

37. Homeless Youth Determination • A student is also eligible for homeless youth status if he/she meets the homeless definition, but was determined to be homeless by the financial aid office. • Students who meet this criteria can use FAFSA on the Web to set the Special Circumstances Flag to ‘3’.

38. Homeless Youth Determination • Currently, FAAs set the Dependency Override Flag to ‘1’ for these students. • FAAs cannot easily distinguish between dependency overrides done to update a student’s dependency status, and those done to confirm a student’s homeless youth status.

39. Homeless Youth Determination • New Dependency Override Flag value of ‘4’ added for 2012-2013

40. 2012-2013 Application Activities • The Secretary of Education announces the annual updates to the tables used in the statutory “Federal Need Analysis Methodology” to determine a student’s EFC for the 2012-2013 Award Year (May 24,2011 [76 FR 30139]). • http://ifap.ed.gov/fregisters/052411FedNeedAnalysisMethodology1213.html

41. Tentative Schedule 2012-2013 Application Activities • August 3, 2011 • 2012-2013 Electronic Data Exchange (EDE) Technical Reference draft (including the ISIR Record Layout and ISIR Cross-Reference) on the IFAP and FSAdownload Web sites. • August 12, 2011 • 2012-2013 Application Processing System Specifications for Software Developers on the IFAP and FSAdownload Web sites. • October 13, 2011 • 2012-2013 EFC Formula Guide on the IFAP Web site, pending final 2011 IRS tax legislation. This guide can be used to calculate an EFC. • October 13, 2011 • 2012-2013 CPS Test System User Guide on the FSAdownload Web site.

42. Tentative Schedule 2012-2013 Application Activities • October 25, 2011 • 2012-2013 Electronic Data Exchange (EDE) Technical Reference on the IFAP and FSAdownload Web sites. • October 27, 2011 • 2012-2013 SAR Comment Codes and Text • October 28, 2011 • 2012-2013 ISIR Guide on the IFAP and FSAdownload Web sites.

43. Tentative Schedule 2012-2013 Application Activities • December 12, 2011 • The CPS Test System is made available. • January 1, 2012 • 2012-2013 FAFSA on the Web site is available to students and 2012-2013 FAA Access to CPS Online Web site. • January 2, 2012 • The 2012-2013 CPS begins processing.

44. QUESTIONS • Please email the presenters – Shamarli Kollock • Shamarli.Kollock@ed.gov Misty Parkinson • Misty.Parkinson@ed.gov