1. 1 Citizenship Issues: Handling Situations for Applicants with Undocumented Parents NCASFAA/SCASFAA Conference Asheville, NC – November 2006 Anthony Jones Ginger Klock U.S. Dept. of Education

2. 2 Agenda  Policy Issues/Real World Scenarios –Reporting/Verifying Income –Paperwork –SSN Issues –PLUS/Additional Unsubsidized Eligibility –Title IV Assistance for Victims of Human Trafficking  Processing Citizenship and SSN Matches  Discussion/Questions

3. 3 Policy Issues Related to Undocumented Parents  Citizenship Rules and Regulations  Reporting Income  Verifying Income  PLUS Eligibility/Additional Unsubsidized Loan Eligibility  Citizenship or Resident Paperwork Issues  Parent Social Security Number Issues  Victims of Human Trafficking

4. 4 Citizenship Rules for Title IV  Section 484(a)(5) of the HEA  34 CFR 668.32(d),.33, and Subpart I, as well as 682.201(b)(1)(i) and 685.200(b)(1)(iii)

5. 5 Citizenship Rules for Title IV - continued  A student or borrower must be: –U.S. citizen or national; –U.S. permanent resident; –Citizen of the Freely Associated States, the Federated States of Micronesia, and the republics of Palau and the Marshall Islands; or –Other eligible non-citizen

6. 6 Citizenship Rules (IRS) IRS Publication 519:  Includes a chart for determining resident vs. nonresident status for IRS purposes –Resident alien’s income is generally subject to tax in the same manner as a U.S. citizen –Nonresident alien’s income is usually subject to U.S. income tax only on U.S. source income

7. 7 Citizenship Rules (IRS) – continued IRS Publication 519 - continued:  A taxpayer identification number (TIN) must be on a return (usually the SSN). If you do not have an SSN, you must apply for an individual TIN.

8. 8 Undocumented Worker: Reporting Income  If parent of dependent applicant is an undocumented worker, parent(s) must still supply income and asset information  Same rules apply if applicant is undocumented but will probably run into citizenship match issues  Cannot do dependency override solely because parent is undocumented worker and concerned about status being revealed (similar to any parent who refuses to supply information)

9. 9 Undocumented Worker: Verifying Income  Applicants with income above minimum threshold for filing must file a tax return. If they do not, it is conflicting information.  IRS provision allows undocumented workers to file tax return by applying for individual taxpayer ID number for tax return filing purposes only See IRS Publication 519, page 23

10. 10 Undocumented Worker: Verifying Income - continued  If below minimum threshold for filing, school can accept W2s or signed, dated statement from parents verifying source(s) and amount(s) of income (see 34 CFR 668.57(a)(4))

11. 11 Undocumented Worker: Paperwork Issues  Even if the student has a letter from DHS verifying that the parent’s application is in the processing stage, that letter is not acceptable as proof of eligibility for Title IV purposes –Ultimately the application could be denied or deemed incomplete and unable to process

12. 12 Undocumented Worker: SSN Issues  When completing the FAFSA, a parent who legitimately does not have an SSN should supply all zeroes –Leaving the item blank on paper will cause a rejected application –FOTW will not allow blanks –Zeroes are considered a valid response

13. 13 PLUS/Additional Unsubsidized Eligibility Dear Colleague Letter GEN-05-16 (Q&A # 5):  An institution may award a dependent student additional unsubsidized Stafford loan amounts based on the fact that there are exceptional circumstances that preclude the parent from borrowing a PLUS  Can occur if dependent student’s parent is not a U.S. citizen or permanent resident (or is unable to provide official evidence that he/she is in U.S for other than a temporary purpose with the intention of becoming a citizen or permanent resident)

14. 14 Title IV Assistance for Victims of Human Trafficking  Section 107(b)(1)(A) of the Victims of Trafficking and Violence Protection Act (VTVPA) –an alien who is a victim of a severe form of trafficking in persons shall be eligible for Federal benefits/services the same as a refugee  ED has long held that non-citizens with refugee status (according to section 207 of Immigration and Naturalization Act) are eligible for Title IV assistance as eligible non- citizens

15. 15 Title IV Assistance for Victims of Human Trafficking - continued  See Dear Colleague Letter GEN-06-09 for complete details  FAFSA response to citizenship would be eligible non-citizen and an alien registration number must be provided –Will fail the DHS data match(es)

16. 16 Title IV Assistance for Victims of Human Trafficking - continued  Documentation issued by the U.S. Department of Health and Human Services (HHS) –Certification Letter to a victim age 18 or older –Eligibility Letter to a victim under the age of 18  FAA must call the HHS Office of Refugee Resettlement at 1-866-401-5510 to verify its validity and to confirm that HHS certification or eligibility has not expired

17. 17 Title IV Assistance for Victims of Human Trafficking - continued  Relatives of Victims: The spouse, child, or parent of a victim of human trafficking may also be eligible for Title IV program assistance  FAFSA response to citizenship would be eligible non-citizen and an alien registration number must be provided –Will fail the DHS data match(es)  HHS documentation issued to relatives: –T-visa (T-2, T-3, or T-4, etc.)

18. 18 Title IV Assistance for Victims of Human Trafficking - continued  For the Relatives of Victims: The FAA must collect a copy of the applicant's T-visa AND a copy of the Certification Letter or Eligibility Letter issued to the victim  FAA must call the Office of Refugee Resettlement to establish both the validity of the victim's status and to confirm the validity of the applicant's T-visa

19. 19 CPS Data Matching Results  Match Flags are alpha or numeric codes that show the results of each match between the CPS and another database.  Comments and comment codes provide information to the student and to the FAA about the results of the processed FAFSA. Comments are included on the student ’ s SAR and on the EDExpress printed ISIR.

20. 20 Matching Results - continued  The “ C ” Code is an indicator that, even though an EFC was calculated, institutional resolution is required on the results of one or more of the database matches. –“ C ” Codes must be resolved either by a correction being made or by the school collecting adequate documentation.

21. 21 Matching Results - continued  Rejects are triggered when applicant data is missing or seriously questionable or when the processing results are unacceptable. In all reject situations, an Expected Family Contribution (EFC) is not calculated, and no Title IV aid may be paid based on a rejected CPS record.

22. 22 Data Matches for Citizenship Sections 484(g) of HEA and 668.33 of the regulations provide that an applicant must be either a citizen or eligible non-citizen. Applicant records that go to DHS for the data match are those who indicate eligible non- citizen and provide an alien registration number on the FAFSA.

23. 23 DHS Primary Verification "C" Code Match Flag Comment Resolution no Y 143 no  Applicant’s non-citizen eligibility confirmed by DHS.

24. 24 DHS Primary Verification - continued "C" Code Match Flag Comment Resolution yes N 144 yes  DHS did not confirm applicant’s non-citizen eligibility.  See results from Secondary Confirmation.

25. 25 DHS Primary Verification - continued "C" Code Match Flag Comment Resolution Reject 17 none 68 yes  Applicant did not indicate citizenship status. DHS match was not conducted.  If SSA Citizenship is verified –Reject 17 will be suppressed.  Applicant should correct to U.S. Citizen (or to eligible non-citizen and provide alien registration number (ARN)).

26. 26 DHS Primary Verification - continued "C" Code Match Flag Comment Resolution yes none 141 yes  Applicant changed from eligible non-citizen to citizen or changed ARN.  DHS match not conducted.  Determine why student changed information. Student may need to submit proof of citizenship.

27. 27 DHS Primary Verification - continued "C" Code Match Flag Comment Resolution yes none 142 yes  Student did not provide ARN or provided invalid ARN.  Match not conducted.  Assist student to make SAR/ISIR correction to provide valid ARN.

28. 28 DHS Secondary Confirmation For applicants that fail Primary Verification:  CPS waits for three compute days to receive results from Secondary Confirmation instead of processing ISIRs with results from primary verification only.  If, after three days DHS does not return a response, CPS will generate the ISIR, which will show that Secondary Confirmation is still in progress.

29. 29 DHS Secondary Confirmation - continued "C" Code Match Flag Comment Resolution no P none no  Automated secondary confirmation in progress.  Wait at least five, but no more than 15 business days for CPS system-generated ISIR with results of automated secondary confirmation.  If no response within 15 days, begin paper (G- 845S) secondary confirmation.

30. 30 DHS Secondary Confirmation - continued "C" Code Match Flag Comment Resolution no Y 120 no  DHS confirmed student is an eligible non-citizen.

31. 31 DHS Secondary Confirmation - continued "C" Code Match Flag Comment Resolution yes C 105 yes  In Continuance.  School is encouraged, but not required, to wait ten business days for another systems generated ISIR with updated secondary confirmation match flag before beginning mandatory paper (G-845S) secondary confirmation process.

32. 32 DHS Secondary Confirmation - continued "C" Code Match Flag Comment Resolution yes N 46 yes  DHS did not confirm eligibility.  Must begin paper (G-845S) secondary confirmation process. G-845S

33. 33 DHS Secondary Confirmation - continued "C" Code Match Flag Comment Resolution yes X 109 yes  DHS did not confirm eligibility because additional information is needed.  Must begin paper (G-845S) secondary confirmation process. G-845S

34. 34 Notes on DHS Secondary Confirmation  Before sending copies of documentation to DHS, school should confirm: – student identifiers are correct, –especially alien registration number and –date of birth. –Make corrections to CPS as necessary.  If school does not receive a response to paper secondary confirmation in 15 days, –applicant is eligible for aid if documentation appears to support claim of eligible non-citizen.

35. 35 Social Security Administration Citizenship Status "C" Code Match Flag Comment Resolution no A or “blank” none no  SSA confirmed U.S. Citizenship status.

36. 36 Social Security Administration Citizenship Status - continued "C" Code Match Flag Comment Resolution yes B, C, D, E, F, or * 146 yes  SSA did not confirm U.S. citizenship status.  If DHS confirmed citizenship status, comment 146 and C code will be suppressed.  Student should provide birth certificate, passport, or other documents that definitively prove citizenship.

37. 37 Social Security Administration Citizenship Status - continued  A match flag of * (asterisk) generally indicates that the student was born in a foreign country to American parents that were stationed in another country ( e.g., military, State Department, or Foreign Service ). –These students generally have a birth certificate indicating that they are U.S. Citizens that were born abroad. –SSA will not automatically update this flag and the financial aid administrator should document the information in the student’s record.

38. 38 Social Security Administration Citizenship Status - continued "C" Code Match Flag Comment Resolution no N 62 yes  SSA unable to verify citizenship because there was no match on SSN, name, or date of birth.  Help student make corrections to social security number, name, or date of birth if necessary so that the student’s record can be sent back to SSA for matching.

39. 39 Data Matching for Social Security Number with SSA Section 484(p) of HEA and section 668.36 of the regulations require a match with the Social Security Administration (SSA) to confirm the social security number of the applicant (and the parent(s) of a dependent applicant).

40. 40 Social Security Number Match with SSA  CPS matches with SSA to verify student and parents ’ SSN, Name and DOB  Match flags are provided for the applicant and each parent  Comment text and codes are provided  Preliminary guidance on resolution provided  No “ C ” codes for parents

41. 41 Social Security Number Match Results SSA Match Flags:  1 = No match on SSN  2 = SSN & name match, no match on DOB  3 = SSN match, no match on name  4 = SSN, Name, and DOB match  5 = SSN, name, DOB match with Date of Death  8 = Record not sent to SSA

42. 42 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution Reject 6 Father = 1 11 yes Mother = not 4  Father ’ s SSN invalid at SSA.  Mother ’ s match is either invalid SSN, mismatch on name or on DOB.  Neither parent has a full match of 4  Need to correct appropriate data elements for parents to achieve a full match (for at least one parent).

43. 43 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution Reject 7 Mother = 1 12 yes Father = not 4  Mother ’ s SSN invalid at SSA.  Father ’ s match is either invalid SSN, mismatch on name or on DOB.  Neither parent has a full match of 4  Need to correct appropriate data elements for parents to achieve a full match (for at least one parent).

44. 44 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no Father = 1 14 no Mother = 4  Father ’ s SSN invalid at SSA.  Mother has a Full Match.  Need to Correct SSN for Father to achieve a full match.

45. 45 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no Mother = 1 15 no Father = 4  Mother ’ s SSN invalid at SSA.  Father has a Full Match  Need to correct SSN for Mother to achieve a full match.

46. 46 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution Reject S Father = 2 16 yes Mother = not 4  Father ’ s DOB invalid at SSA.  Mother does not have a Full Match  Need to correct DOB for Father to achieve a full match.  Need to correct Mother ’ s data elements as appropriate to achieve full match.

47. 47 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no Father = 2 7 no Mother = not 4  Father reaffirmed that SSA ’ s invalid DOB is correct.  Mother does not have a Full Match  Need to correct Mother ’ s data elements as appropriate to achieve full match.  If the Father ’ s DOB is correct, the father should contact SSA to update its records.

48. 48 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution Reject T Mother = 2 17 yes Father = not 4  Mother ’ s DOB invalid at SSA.  Father does not have a Full Match.  Need to correct DOB for Mother to achieve a full match.  Need to correct Father ’ s data elements as appropriate to achieve full match.

49. 49 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no Mother = 2 8 no Father = not 4  Mother reaffirmed that SSA ’ s invalid DOB is correct.  Father does not have a Full Match.  Need to correct Father ’ s data elements as appropriate to achieve full match.  If the Mother ’ s DOB is correct, the mother should contact SSA to update its records.

50. 50 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no Father = 2 19 no Mother = 4  Father ’ s DOB invalid at SSA.  Mother has a Full Match  Need to correct Father ’ s DOB to achieve full match.

51. 51 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no Mother = 2 21 no Father = 4  Mother ’ s DOB invalid at SSA.  Father has a Full Match  Need to correct Mother ’ s DOB to achieve full match.

52. 52 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no Father = 3 22 no Mother = 4  Father ’ s Name is invalid at SSA.  Mother has a Full Match  Need to correct Father ’ s name to achieve a full match.

53. 53 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution Reject E Father = 3 40 yes Mother = not 4  Father ’ s Name invalid at SSA.  Mother does not have a Full Match  Need to correct Name for Father to achieve a full match.  Need to correct Mother ’ s data elements as appropriate to achieve full match.

54. 54 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no Father = 3 44 no Mother = not 4  Father reaffirmed that SSA ’ s invalid Name is correct.  Mother does not have a Full Match  Need to correct Mother ’ s data elements as appropriate to achieve full match.  If the Father ’ s Name is correct, the father should contact SSA to update its records.

55. 55 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no Mother = 3 25 no Father = 4  Mother ’ s Name is invalid at SSA.  Father has a Full Match  Need to correct Mother ’ s name to achieve a full match.

56. 56 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution Reject F Mother = 3 51 yes Father = not 4  Mother ’ s Name invalid at SSA.  Father does not have a Full Match  Need to correct Name for Mother to achieve a full match.  Need to correct Father ’ s data elements as appropriate to achieve full match.

57. 57 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no Mother = 3 71 no Father = not 4  Mother reaffirmed that SSA ’ s invalid Name is correct.  Father does not have a Full Match  If the Mother ’ s Name is correct, the mother should contact SSA to update its records.  Need to correct Father ’ s data elements as appropriate to achieve full match.

58. 58 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no Father = 5 27 no  Successful match to a deceased person ’ s record on the SSA database for father.  If the father ’ s identifiers are correct, the father should contact SSA to fix their records.  Once SSA corrects its records, the father can reenter the name and submit it as a SAR/ISIR correction for an updated match flag.

59. 59 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no Mother = 5 29 no  Successful match to a deceased person ’ s record on the SSA database for mother.  If the mother ’ s identifiers are correct, the mother should contact SSA to fix their records.  Once SSA corrects its records, the mother can reenter the name and submit it as a SAR/ISIR correction for an updated match flag.

60. 60 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution Reject 9 n/a 49 yes  Match w/ SSA was not conducted on either parent.  One of SSN, last name and DOB is missing for both parents.  Must provide all appropriate data elements for parents to enable the match w/ SSA.  If parents do not have an SSN, provide zeroes

61. 61 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no n/a 166 no  Father ’ s data not sent to SSA for data match.  SSN for Father is not in SSA ’ s list of issued SSNs.  Father ’ s SSN appears to be invalid.  Need to provide correct SSN for Father.  If Father ’ s SSN is correct,Father should contact SSA to ensure their records are correct.

62. 62 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no n/a 167 no  Mother ’ s data not sent to SSA for data match.  SSN for Mother is not in SSA ’ s list of issued SSNs.  Mother ’ s SSN appears to be invalid.  Need to provide correct SSN for Mother.  If Mother ’ s SSN is correct, Mother should contact SSA to ensure their records are correct.

63. 63 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no n/a 48 no  Parent(s) SSN is the same as student ’ s SSN  SSN for parent(s) is blanked out.  Need to Correct parent(s) SSN.

64. 64 Parent Social Security Number Match with SSA - continued "C" Code Match Flag Comment Resolution no n/a 45 no  Parents ’ marital status is not married.  SSN provided for both Father and Mother.  Need to correct either parent marital status or eliminate the appropriate parent SSN information.

65. 65 References  On IFAP (www.ifap.ed.gov) –SAR/ISIR Guide - Appendix B –Citizenship portion of FSA Handbook (Refer to Volume 1, Chapter 2 (pp. 17-40)) –Dear Colleague Letter GEN-05-16 (Q&A # 5) –Dear Colleague Letter GEN-06-09  IRS Website (www.irs.gov) –Pub. 17 (Your Federal Income Tax) –Pub. 513 (Tax Information for Visitors to the U.S.) –Pub. 519 (U.S. Tax Guide for Aliens)

66. 66 Contact Information For questions or to provide feedback: Anthony Jones 202-502-7652 Anthony.Jones@ed.gov Ginger Klock 202-377-3239 Ginger.Klock@ed.gov