BeautyLink - Volume 8, Issue 3 - (Page 20)
AND THEN THERE'S
What a Difference a Year Makes!
has been discussed in the financial
aid arena for decades is now reality. "Prior-prior
year income" (PPY) impacts financial aid this fall!
On September 14, 2015, President Barack Obama
announced that PPY income would be used in the
U.S. Department of Education's (ED) Free Application for Federal Student Aid (FAFSA) process.1 This
brings new considerations regarding the year's data
with which one is working!
A TOPIC THAT
implementation of PPY. The following chart illustrates how use of PPY impact s the FAFSA process.
PPY Considerations in Managing
the Financial Aid Process
As schools anticipate use of PPY for 2017-2018, it is
important that they ask and address several questions related to implementing PPY.
1 | Will it impact your processing and awarding
IF YOU PLAN TO ATTEND COLLEGE FROM
YOU CAN SUBMIT THE FAFSA FROM
USING TAX INFORMATION FROM 2 | How will it impact you when
you set your tuition rates for the
July 1, 2015-June 30, 2016
January 1, 2015-June 30, 2016
next award year?
July 1, 2016-June 30, 2017
January 1, 2016-June 30, 2017
3 | How will you update your consumer information about applying
July 1, 2017-June 30, 2018
October 1, 2016-June 30, 2018
for aid utilizing PPY?
July 1, 2018-June 30, 2019
October 1, 2017-June 30, 2019
4 | Will there be an impact on the
number of professional judgment (PJ) scenarios you
Historically, a student has applied for financial aid
have to handle with current staffing?
from the 2015
5 | The financial aid industry, as a whole, may shift
for an award year utilizing the appropriate appliFederal Student
cants' "base year income." Base year income is the
the entire processing cycle up by 3 months. Will this
Aid Conference -
income from the most recently completed tax year
impact your operations when it comes time for end
General Session #2 -
prior to the beginning of the award year for which
of year Pell reporting, Fiscal Operations Report and
aid is desired. The historic concern with the requireApplication to Participate (FISAP) submission, etc.?
ment to use base year income is that tax filers may
6 | Especially in the first year of this transition, will
not have filed their tax returns early enough to use
you be awarding from two award years at the same
as linked to in ED's
time...or, for a longer period of time?
the information to timely complete the FAFSA to
7 | Has your software vendor planned to have its
meet a school's admission, initial Federal Student
software ready on time, taking into consideration
Aid packaging date, verification, and/or scholarship
deadlines. Effective with the FAFSA for 2017-2018,
the changes in ED's date for acceptance of 2017applicants will now use the "prior-prior year" (PPY)
income. It is anticipated that use of PPY will increase
8 | Will ED modify any of its timetables for prothe number of applicants who are able to utilize the
ducing Pell Grant payment schedules and reportIRS Data Retrieval Tool (DRT), thereby increasing
ing dates, e.g., October 2016 for the 2017-2018 Pell
the accuracy and timeliness of applications.
schedules or, or will they continue to not be available
With the advent of PPY, aid applicants are required
until January 2017?
9 | If your state offers state financial assistance proto use PPY income versus base year income. PPY
grams, will the state's application dates change as a
income is the income applicants' had for the tax year
immediately preceding the most recently completed
result of the FAFSA submission process date change?
tax year prior to the beginning of the award year
ED has made available its Financial Aid Toolkit
for which aid is desired. As an example, for the
website at www.financialaidtoolkit.ed.gov. These
2016-2017 award year, the base year income used
resources may assist in assessing the impact of PPY
to complete the FAFSA is the income from the 2015
implementation, and communicating this change to
tax year. However, if PPY were already in effect,
students and financial aid applicants.
Depending upon a school's answers to the above
the 2014 income would have been used (which is
questions, and its necessary actions to address the
the PPY for 2016-2017). Since PPY use begins with
the FAFSA for 2017-2018, the income utilized will
questions, PPY may have a significant effect on
be the 2015 income, again. This is even though the
a school's operations. Schools are encouraged to
2015 income was also used for the 2016-2017 award
appropriately analyze the potential impact of PPY
on its operations and plan accordingly.
With President Obama's announcement, students
This material is presented for informational and educational
will be able to submit the 2017-2018 FAFSA as early
purposes only and should not be considered to be giving legal advice.
1 ED's Electronic Announcement of December 10, 2015
2 ED's Electronic Announcement of September 14, 2015
which would have been the earliest date before
| B E AU TYLINK | H E A LT H & SC IENC E | 2 016
Table of Contents for the Digital Edition of BeautyLink - Volume 8, Issue 3
Message From the AACS President and CEA Chair
Workings of Washington
2016 CEA & AMP Convention: Everybody is a Star
OSHA in Beauty Schools
And Then There’s Compliance
Why Me? How Oncology Esthetics Comforts Cancer Patients and Became my Calling
Micro Current: A Progressive Treatment
Artists Dish on Today's Hair Color Trends
The Dirty Business of Keeping Clean
Dip! Strip! Stand Up Straight?
Beauty Changes Lives
Voices From the Classroom
People & Places
New Products & Services
Associate Member Profiles: Health/Wellness and Disinfectant Companies
New School Members
Upcoming 2016 Events
Index to Advertisers
BeautyLink - Volume 8, Issue 3