Offices 2012-2013 Important Financial Aid Changes
Changes to the FAFSA - IRS Data Retrieval
There is an easier, faster way to provide tax information for the FAFSA (Free Application for Federal Student Aid). The retrieval process will display your tax information and allow you to transfer it to your FAFSA. The Department of Education and Marlboro’s financial aid office encourages everyone to use this process.
Instructions: Use the IRS Data Retrieval Process when completing the FAFSA online. When completing the FAFSA you will be prompted to enter your PIN and link to the IRS web site. Certain data elements such as AGI and taxes paid will be entered for you on the FAFSA.
To successfully use this option you must:
- Have a valid social security number.
- Have a Federal Aid Personal Identification Number (PIN).
- The Federal Tax Return must be filed at least two weeks (if filing electronically) and 6 -8 weeks (if filing paper return) before using the FAFSA IRS Data Retrieval Process.
You will not be able to use this option if:
- Your marital status changes after December 31.
- You file married filing separately.
- You file a foreign tax return.
- You will file an amended return.
Verification: If your FAFSA is selected for verification, and you did not use the IRS Data Retrieval option or you changed the IRS data, you will be required to request a tax transcript from the IRS and submit it to the financial aid office. Personal copies of tax returns can no longer be accepted. (The IRS will not mail or fax tax transcripts to the college on your behalf.)
To request a Tax Transcript:
- By phone: Call the IRS at 1-800-829-1040
- Online: Go to www.irs.gov
- By mail: Complete Form 4506-T and mail to the address on the form
The financial aid office may still need to collect additional documentation to verify data not provided by the FAFSA IRS Data Retrieval Process (ex: copies of W-2, items as household size, number in college, and untaxed income).
Changes to Stafford Loans and PLUS Loans
Currently, there is a 1% origination fee on a Stafford loan and a 4% fee on PLUS loans, but a portion of the fee, .5% for a Stafford and 1.5% for a PLUS, is rebated at the time of disbursement. Beginning July 1, 2012, the full fee will be charged. Also eliminated is the .25% interest rate reduction if you pay your loans electronically while in repayment.
Important Information for Seniors Considering Graduate School
Beginning July 1, 2012, the graduate Stafford loan program will become entirely unsubsidized, which means the loan will accrue interest while a student is in school. The maximum amount a student can borrow will remain at $20,500 per academic year.
The loss of origination fee and interest rate reduction mentioned above (Changes to Stafford and PLUS loans) will also apply to graduate level loans. Federal loans available to graduate students include unsubsidized Stafford loans and graduate PLUS loans. Graduate PLUS loans are partially credit-based loans.
Please contact the financial aid office with questions.