Department Provides New FAFSA Flexibilities for Institutions

In response to ongoing delays with the rollout of the Free Application for Federal Student Aid (FAFSA), the Department of Education announced several new flexibilities for institutions of higher education.

The Department announced that it is:

• Significantly reducing FAFSA verification requirements. The Department will continue to require limited verifications for certain cases, particularly those that indicate fraud, such as identity theft, but institutions will not need to verify income data from students who successfully use the IRS data-sharing tool.
• Suspending new program reviews through June 2024, except those for serious issues like fraud or severe breach of fiduciary duties. For institutions currently in program reviews, the Department will delay deadlines for its required submissions and communicate directly with those institutions.
• Waiving the requirement for institutions to initiate recertification procedures no later than 90 days before their program participation agreements (PPAs) expire. The Department is waiving that requirement for all PPA recertifications due in March, June, or September 2024. In other words, institutions have until the day their certification expires to submit their recertification application.

While these flexibilities bring needed relief to institutions, the Department has not announced any delay in its July 31, 2024 reporting deadline for the Financial Value Transparency (FVT) and Gainful Employment (GE) regulations. However, the Department has indicated that it may consider providing more regulatory relief in the future.

This announcement came on the heels of another one from the Department last week indicating that the agency is expecting to make the test institutional student financial aid information records (ISIRs) available by February 16, so institutions can test their systems. Institutions must have their SAIG mailbox set up to receive ISIRs—a step many have not yet taken.

The Department has also announced the availability of a series of resources, including $50 million in assistance to help under resourced institutions that might need additional support with FAFSA implementation. To help NAICU track the application process, institutions that submit applications for this assistance are encouraged to inform NAICU’s government relations team via email at governmentrelations@naicu.edu.

For more information, please contact:
Justin Monk