IRS Data Retrieval Tool Returns to FAFSA

Families who plan to file the FAFSA (Free Application for Federal Student Aid) for the 2018-19 academic year may find the process easier this year, thanks to the relaunch of the IRS Data Retrieval Tool. After being shut down last spring following ID hacking that may have put up to 100,000 tax payers at risk, the tool has been revamped to address security issues. Starting October 1, families can use the tool to upload their tax information for 2016 directly from the IRS to their FAFSA, saving time and the potential headaches of entering data by hand.

As part of the new process, the exact income numbers from filers returns will be "masked" once they have uploaded. The data fields on the student aid report will simply say "transferred from the IRS". This new data security measure is worrying to some, who are concerned that potential errors in their tax returns that they are unable to see on the FAFSA could damage their eligibility for financial aid. If accuracy is a worry, however, entering data by hand directly from returns is still an option.

Whether you decide to utilize the Data Retrieval Tool or not, it's a great idea to get started on your FAFSA as soon as the site goes live on October 1. You'll be well ahead of submission deadlines and you'll be able to determine your family's expected family contribution toward college costs prior to submitting college applications, which can be valuable if you are trying to adhere to a budget and want to be sure your college choices are affordable.

Want to learn more about financial aid for college? Check out my previous blog posts on understanding financial aid and tips for planning a successful financial aid process. Additionally, here are some useful links to help you navigate financial aid.

FAFSA 

Expected Family Contribution Calculator

How Federal Student Aid Is Determined

Paying for College: FAFSA Fundamentals

You've survived your college applications. You've filled in countless online forms, written and re-written enough essays and supplement essays to satisfy the Reflective Essay Gods for a lifetime, and managed to get your teacher recommendations in on time without being arrested for stalking or harassment. You're done! Now all you need to do is sit back and wait for those acceptance letters. Right?

Wrong! You've set your college dreams in motion, but now you need to figure out how to pay for them once they start to come true. Step 1: The FAFSA.

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