


Ask the community...
One more important thing to note - make sure you understand the potential tax implications of any discharge. While closed school and TPD discharges aren't currently taxable federally (through 2025), some states may still consider it taxable income. This varies by state, so check your local rules or consult with a tax professional before proceeding.
That's a really good point - I hadn't even thought about the tax implications. I'm in California - do you know if they follow the federal non-taxable status for loan discharges?
California generally conforms to federal tax treatment for student loan discharges, so you should be fine. But always document everything and keep records of your discharge for at least 7 years in case it comes up in a future audit. The most important thing right now is getting the discharge approved.
my friend said the DOE website has special instructions 4 when ur school closed bcuz of fraud. there's like a special fraud team or something? dont know much about it but maybe look into that 2
One important thing to remember for everyone dealing with verification delays: document everything. Take screenshots of your account showing the verification pending status, and any error messages you encounter. If you end up missing scholarship deadlines because of the FAFSA verification delays, many institutions will accept these screenshots as proof that you were attempting to complete the application in a timely manner. Also, once your verification is complete and you can access the application, the IRS Data Retrieval Tool (DRT) should work seamlessly to import your 2023 tax information. Just make sure the name, SSN, and filing status on your FAFSA exactly match what's on your tax return.
To directly answer your question - yes, SSN verification MUST be completed before tax data can be imported. This is a security measure to ensure that only authorized individuals can access tax information. The Federal Student Aid system has to confirm with the Social Security Administration that the information you provided matches their records before allowing access to the IRS Data Retrieval Tool. If you're worried about scholarship deadlines, contact the financial aid offices at the schools your daughter is applying to. Many institutions have adjusted their internal deadlines to accommodate for the delays in the new FAFSA system. They may allow you to submit proof that you've initiated the FAFSA process even if you haven't been able to complete it yet.
This is just making excuses for a broken system. They've had YEARS to prepare for these changes and they still messed it up. Security measure?? More like incompetence measure!!
The security processes are necessary to protect sensitive financial data. The verification process is specifically designed to prevent identity theft and fraud. While the delays are frustrating, having your tax information stolen would be far worse. If you're experiencing excessive delays (more than 2 weeks), there are escalation paths available.
My daughter's took exactly 19 days. But then her CSS Profile (which some private schools require) took another week after that. Make sure you check if any of your schools need the CSS Profile too - that's a separate application through College Board with its own timeline!
UPDATE: Just got my SAI this morning - took exactly 17 days! Looks like the average processing time from everyone's responses is around 2-3 weeks, though it can vary widely. For those still waiting, hang in there and definitely contact your schools about any upcoming deadlines. Most of mine were super understanding about the delays. Thank you all for your helpful responses! This community has been so supportive during this stressful process.
17 days isn't bad considering how messed up the system is! Did you get the SAI you were expecting or was it way off? Mine was COMPLETELY different from the estimate I got using the Federal Student Aid calculator...
do ur best to stay calm, we were so stressed bout this but it all worked out fine. just stay on top of followin up with the school every few days
Wait did anyone else have to provide their parent's birth certificates too?? My school asked for BOTH my proof of citizenship AND my parents' proof even though I'm the only one applying for aid. Seemed excessive.
That's unusual. Parent citizenship documentation is typically only required if the parents themselves are also applying for federal aid (like Parent PLUS loans) and have citizenship verification issues. If you're the only one applying and you're dependent, they should only need your documentation. Might be worth clarifying why they need your parents' information as well.
Malik Davis
UPDATE: I got through to someone at FSA using that Claimyr service another commenter suggested. It worked surprisingly well - I got a call back in about 20 minutes instead of waiting on hold forever. They found our application in their system! Apparently it was flagged for a verification issue unrelated to the signature problem. The agent reset something on their end and said it should reappear in our account within 24 hours. I'll update again tomorrow to let everyone know if it worked. Thanks for the help, everyone!
0 coins
Isabella Santos
•omg thats amazing!! i wish id known bout that b4 we redid everything. let us know if it works!!
0 coins
CosmicCruiser
•My brothers FAFSA had the same thing happen but we didn't get it fixed and had to redo everything. Was a huge pain getting all the tax stuff again since parents had to find all there documents again. Hope yours comes back!
0 coins
Malik Davis
FINAL UPDATE: Our application is back! It showed up this morning with a status of "Processing" and all our information intact. The agent was right - they hadn't lost our data after all. Such a relief not having to start over. For anyone else having this problem, definitely try contacting FSA directly before assuming you need to start over. And that Claimyr service was definitely worth it to avoid the hold times.
0 coins
Omar Hassan
•Great news! Glad it worked out. This new FAFSA system has been causing so many similar problems. Just a reminder to everyone - once your application is processed, download and save a PDF copy of everything for your records.
0 coins