Gainful Employment Ruling Struck Down

English: Photo of Education Secretary (2009-)....

Just days after the Department of Education released Gainful Employment Informational Debt Measures and Gainful Employment Informational Loan Medians to institutions, GE is Dead!

On Saturday, United States District Judge Rudolph Contreras struck down Gainful Employment rules in a suit that the Association of Private Colleges and Universities brought against the Department of Education and Secretary Arne Duncan to challenge Gainful Employment rules.

Check out the full text of the legal decision here:

https://ecf.dcd.uscourts.gov/cgi-bin/show_public_doc?2011cv1314-25

An unusual verification scenario

A colleague recently encountered an unusual verification scenario. When a student filed head of household on her Federal Income Tax returns and listed her spouse and child in the household size, she decided to examine the situation closer to ensure that all of the information in the file was consistent. She knew that in order to file as head of household, the student generally couldn’t be married and she set out to identify any conflicting information.

When she interviewed the student, she explained that she was married in another country and that although she was a Permanent Resident herself, her husband who was unemployed, was a nonresident alien. Since he didn’t work, he didn’t file taxes. She remarked that she and her husband were not considered married in the United   States. This didn’t sound right to the experienced financial aid administrator, so she pulled out good-old IRS Publication 17 to do some research.

She knew right where to look, and thumbed to the page on Head of Household.

It read:

Head of Household

You may be able to file as head of household if you meet all the following requirements.

  1. You are unmarried or “considered unmarried” on the last day of the year.
  2. You paid more than half the cost of keeping up a home for the year.
  3. A “qualifying person” lived with you in the home for more than half the year (except for temporary absences such as school). However, if the “qualifying person” is your dependent parent, he or she does not have to love with you.

She reread the first requirement aloud, recalling the student’s similar statement. “You are unmarried or “considered unmarried” on the last day of the year.”

What did that mean?

She read on, eventually finding her answer.

It read:

Nonresident alien spouse.  You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. However, your spouse is not a qualifying person for head of household purposes. You must have another qualifying person and meet the other tests to be eligible to file as head of household.

Much to her surprise, the student’s story checked out and she quickly phoned the student to give her the good news. She was excited to tell her all about the exciting guidance she found in IRS Publication 17. When she got around to calling me, we agreed, this was one of those stories for the infamous “book” of financial aid rarities and oddities.

Got a great financial aid related story to tell? Tell us about it below.

Sample Verification Worksheets for 2012-2013

Earlier this week, the US Department of Education published sample Dependent and Independent Verification Worksheets.  Copies of the worksheets are available here:

http://www.ifap.ed.gov/eannouncements/020312SampleVerificationWorksheets1213.html

Schools are not required to use the sample worksheets.  Schools  may develop their own worksheets or they may choose not to use a worksheet at all but  rather, to collect the required documents, statements, certifications and  signatures through other means. In addition to the usual PI and household size, schools will be required to verify specific data elements from the student’s 2011 Federal Income Tax Transcript. SNAP and Child Support are also among the potentially verifiable items. To get a complete listing of the of the information that may need to be verified for applicants who complete the FAFSA for the 2012-2013 award year check out GEN 11-13 which was published way back in July of 2011.

2012-2013 Student Aid Eligibility Worksheet for Question 23

On January 17th, the 2012-2013 Student Aid Eligibility Worksheet for Question 23 also known as the Drug conviction worksheet was published for the 2012-2013 award year in English and Spanish. Students who answer either “Yes” to question 23 of the 2012-2013 FAFSA which asks if the student has ever been convicted for possessing or selling illegal drugs while receiving Federal Student Aid should complete the worksheet to determine if the conviction will affect their eligibility for aid.

Students who meet the following criteria are generally eligible for aid:

  • Students who never received Federal Student Aid (Federal Student Grants, Federal Student Loans, Federal Work-Study)
  • Students who have never been to college
  • Convictions that occurred before they turned age 18
  • Convictions that were removed from their record
  • Convictions other than Federal or State convictions,
  • If the offense occurred during a period on non-enrollment during which the student did not receive aid.

A copy of the worksheet is available here: http://www.ifap.ed.gov/drugworksheets/attachments/011112StudentAidEligibilityDrugWkshten1213.pdf