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How to Process Selective Service and Drug Conviction Database Matches Due to FAFSA Simplification Act and the Immediate Changes to be Implemented for the 2021–22 Award Year. (Doc ID 2785193.1)

Last updated on JUNE 23, 2021

Applies to:

PeopleSoft Enterprise CS Financial Aid - Version 9 and later
Information in this document applies to any platform.

Details

As of June 11, 2021, the Federal Student Aid (FSA) announced that there will be a phased in approach to the implementation of the FAFSA Simplification Act, which passed on December 27, 2020 as part of the Consolidated Appropriates Act, 2021.  The FAFSA Simplification Act represents a significant

overhaul of the federal student aid, include the Free Application for Federal Student Aid (FAFSA®) form, need analysis, and many policy and procedures for schools that participate in the Title IV programs.

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 The immediate changes that will be implemented for the 2021-2022 Award Year are as follows:

  1. Repeal of the Subsidized Usage Limit Applies (SULA) requirements;
  2. The removal of negative consequences associated with an affirmative response on the drug conviction question on the FASFA form; and
  3. The removal of the requirement that male students register with the Selective Service System to receive federal student aid.

While it is too late in the development cycle to remove the questions from the 2021-2022 and 2022-2023 FAFSA forms, FSA has provided guidance to institutions about how to process FAFSA forms to eliminate the effect of the questions.

2021-2022 Award Year

For the 2021-2022 award year, for which the FAFSA cycle has already begun, the Selective Service and drug conviction questions (as well as the option to register with the Selective Service via the FAFSA) will remain on the FAFSA. However, failing to register with the Selective Service or having a drug conviction while receiving federal Title IV aid will no longer impact a student’s Title IV aid eligibility.

For the 2021-2022 award year, institutions will still see Comment Codes 030, 033, or 057 for Selective Service issues and Comment Codes 053, 054, 056, or 058 for drug convictions. Each Comment Code will still include messaging that a resolution is required to regain eligibility for federal student aid. For Institutional Student Informational Reports (ISIRs) received on or after the implementation date, institutions must ignore the Comment Codes and the messaging requiring resolution and proceed to award and disburse aid to students if they are otherwise eligible. However, while recommended, institutions are not required to go back and reprocess, package, or award aid for ISIRs they received for the 2021-2022 award year prior to the implementation date unless requested by the student.

Federal Student Aid will be proactively sending emails to students who are associated with 2021-2022 ISIRs received prior to the implementation date and who were determined to be ineligible based on their answers to Selective Service and drug conviction questions informing them about the change in the law and their potential eligibility for Title IV aid. Emails will direct students to contact their institution’s financial aid office.

Customers will need to modify the ISIR Comment Code Setup so that the comment codes specified above will no longer prevent the awarding of federal student aid.

This can be accomplished by navigating to Setup SACR > Product Related > Financial Aid >  Application Processing > Maintain ISIR Comment Codes > ISIR Comments

  1. Aid Year = 2022
  2. Find Comment Code 030, 033, 053, 054, 056, 057, 058 and set the Severity Level of 0 - Ignore
  3. Save the changes.

Or, overriding the database matches for Selective Service and Drug Conviction can be done at the student level under Financial Aid > Package Status Summary > Database Matches.

Going forward, any ISIRs loaded after making this change, the comment codes on the ISIR pages will be viewable as normal, but will no longer trigger a database match requiring resolution.

Any students with a previously loaded ISIR who may not have been awarded federal aid based on the severity level for these comment codes being "1" or "2" should now be able to be awarded federal aid with the comment codes now being set to severity level "0"

This is an example of a student awarded federal aid financial aid item types with specified comment codes present on the ISIR.

Note: There are Selective Service Match flags displayed under Datbase Matches\Flags on ISIR pages in Campus Solutions.  These are informational.

ISIR Rejects:
In reviewing ISIR Guide 2021-2022 from Federal Student Aid, there are no ISIR reject codes associated with the Selective Service and Drug Conviction comment codes specified.

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