Beauty Link - Volume 4, Issue 3 - (Page 60)

AND THEN THERE’S COMPLIANCE ED Impacts Verification for 2012-13 and Beyond ALTHOUGH AACS strives to address general compliance updates in its quarterly publication, we realize that educational regulations and policies are continually evolving. For that reason, schools should regularly review the comprehensive list of Electronic Announcements and Dear Colleague Letters at www.IFAP.ed.gov. Following is a synopsis of just some ED information impacting member schools in 2012. Back in January, the 2012-2013 Expected Family Contribution (EFC) Formula Guide (January 2012 update) was released. The updated guide incorporated changes required as a result of the Consolidated Appropriations Act, 2012, which was passed into law in December 2011. An example of the effects of the legislation include a reduction in the maximum income that makes an applicant eligible for an automatic zero EFC (auto zero EFC). Prior to this change, the income threshold for the 2012-2013 Award Year would  have been $32,000. Under the amended law that amount is $23,000. As a result, ED revised the auto zero EFC threshold to $23,000 throughout  the updated 2012-2013 EFC Formula Guide. The guide also includes the EFC tables and worksheets necessary to calculate an estimated EFC for students for 2012-2013. Compliance Update As BeautyLink went to press, the following information was made public and was explained in more detail during a July 11 Webinar: On June 30, 2012, the U.S. District Court for the District of Columbia, in the Association of Private Sector Colleges and Universities vs. Duncan, issued a decision that vacated most of the GE regulations that ED had published on October 29, 2010, and June 13, 2011, and remanded those regulations. The Department has since issued the following with regard to that ruling: "The court clearly upheld the authority to regulate college career programs, but found that the Department had not provided enough explanation of its debt repayment measure, so it has given the Department an opportunity to address that concern. We are reviewing our legal and policy options to move forward in a way that best protects students and taxpayers while advancing our national goal of helping more Americans get the skills they need to compete in the global economy." The Department is reviewing the details of the Court’s decision in consultation with the Department of Justice and evaluating appropriate next steps. Verification for 2012-13 and Beyond Verification has been required for the need based Title IV programs  since the 1986-87 award year. Institutions are very comfortable completing the required  verification process for selected students, which has required the same five data items to be verified every year: adjusted gross income (AGI), taxes paid, household size, number in college, and untaxed income, which varies from year to year. For several years ED tried to fi gure out how to help students  complete the verification process by having the IRS compare what is entered on the FAFSA to the fi led IRS tax information. Of course,  IRS privacy laws would not allow the IRS to share this information without permission from the tax fi ler, making the match almost impossible. ED was fi nally able to provide a way for the tax fi lers to retrieve the information directly from IRS and download it directly  into the FAFSA on the Web (FOTW). If the process is successful and the information is not altered, the FAA Information page will show  an IRS request fl ag=02. Should the student be selected for  verification, hardcopy tax return information is not required, and life is good!  BY PEGGY WELLISCH Although not perfect, this is a fi rst step toward  lightening the verification burden of the fi nancial aid staff. So, how does this work? In a perfect world, the student completes FOTW, links to the IRS website through the FAFSA PIN number, draws in the tax information, fi nishes the FAFSA, receives the ISIR,  verifies the household size, number in college, verifies receipt of  food stamps and child support paid (if either of these last two items are indicated on the ISIR). Sounds easy, but what are the challenges of this process? Using the IRS Data Retrieval Tool (DRT) is more complicated than indicated to the fi nancial aid community. Any student/parents that fi led a joint tax return with a fi ling status of married but who are now separated (and may have been separated for years), or married couples with a  fi ling status of married fi ling separate, will not be able to use the DRT and if selected for verification, they will have to request an IRS Tax  Transcript. No more paper tax returns are allowed. Alright, then, the student/parents are eligible to use the DRT and during the FOTW process try to retrieve the tax return information through  their 60 | B E AU TYLINK | SU R V I VAL | 2012 http://www.IFAP.ed.gov http://www.naylornetwork.com/bsa-nxt/

Table of Contents for the Digital Edition of Beauty Link - Volume 4, Issue 3

Message From the AACS President and CEA Chair
Workings Of Washington
Network, Innovate, Grow: AACS Annual Convention & Expo 2012
Attending a Convention: 10 Tips for Success
Superstar Graduates
A Teacher’s Safari: Managing the Zoo of Personalities
Sticking it Out: 10 Threats That Keep Students from Surviving and Thriving in the Real World
Step-by-Step NEW!
Data Disaster: Protecting Sensitive and Important Records
Mixing Generations in the Classroom: Can They Coexist?
Beauty Changes Lives
Every Vote Counts: Encouraging and Emphasizing the Importance of their Vote
Hip-Hop Haircuts: Curtis Smith Sets Trends
AACS Listserve Q & A
Now We’re Talking: An Education in Communication
Multicultural Corner
Health & Wellness for Educators: Tips for Being Healthy
A Student’s Perspective NEW!
And Then There’s Compliance
Remembering Two Beauty Legends
Beauty Before Boarding: Airport Salons Take Flight
Join CEA/AACS
Voices From the Classroom
CEA Annual Convention Photo Spread
Quiz Time: How Well Do You Know Your Association?
Associate Member Profiles: Makeup/Cosmetics
People & Places
New Products & Services
New School Members
Upcoming 2012-2013 Events
Index to Advertisers
Advertisers.com

Beauty Link - Volume 4, Issue 3

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