FAFSA processed but scholarship showing 'Parent_IRS_EdCredit_01' error - Need help
My son's FAFSA was finally processed and his university portal shows they're putting together his financial aid package (yay!). Here's the problem - he received two Maryland state senatorial scholarships, and I already accepted both awards on the MHEC website. One is showing as accepted, but the other one is stuck on 'pending' with this weird error message: 'FSA Error: Parent_IRS_EdCredit_01.' I have NO idea what this means! I'm planning to call the MHEC office tomorrow morning, but I'm freaking out a bit since fall tuition is due soon. Has anyone encountered this specific error with state scholarships and FAFSA verification? Any advice on what I should specifically ask when I call? This whole process is so confusing!
18 comments


GalaxyGuardian
I dealt with this exact error code last year with my daughter's Maryland senatorial scholarship. The 'Parent_IRS_EdCredit_01' error is related to an inconsistency between what you reported for education credits on your FAFSA and what the IRS has on file. Basically, the scholarship office can't finalize until that discrepancy is resolved. When you call MHEC, ask them to specifically tell you what information needs to be corrected. In our case, we had to submit an amended FAFSA with the correct education credit amount from our tax return (line 29 of the 1040). Once we did that, the scholarship was processed within 3-4 business days.
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Mateo Rodriguez
•Thank you SO much! I didn't even think about education credits being the issue. We did claim the American Opportunity Credit last year for my older daughter. I'll double-check our tax forms tonight before calling MHEC tomorrow. Did you have to submit any additional documentation to prove the correct amount, or just update the FAFSA?
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Aisha Abdullah
yeah my brother got that same error message last month! something about education tax credits on parents tax forms. super annoying. took like 2 weeks to fix and they made him upload his parents tax transcript direct from irs website. good luck!!
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Mateo Rodriguez
•Ugh, 2 weeks?! Fall semester payment is due in 3 weeks. I really hope it doesn't take that long. Did your brother have to get the tax transcript himself or did the financial aid office help with that part?
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Ethan Wilson
This error is specifically tied to the IRS data retrieval tool from your FAFSA. The Parent_IRS_EdCredit_01 error indicates a mismatch on reported education credits. You have three options: 1) Call MHEC first to confirm this is the exact issue 2) Log into studentaid.gov and use the IRS Data Retrieval Tool to automatically correct the information 3) Submit a correction to your FAFSA manually with the exact figures from your 1040 The fastest resolution is typically option 2 if you're eligible to use the IRS DRT. This should resolve within 3-5 business days once corrected.
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Mateo Rodriguez
•I tried using the IRS Data Retrieval Tool when we first filed the FAFSA but it wouldn't work for some reason. I'll try again tonight and see if it's working now. Thank you for laying out the options so clearly!
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Yuki Tanaka
If you need to reach FSA directly to discuss this error, fair warning that their phone lines are COMPLETELY jammed right now. I spent 3 hours on hold last week trying to fix a similar verification issue with my son's Maryland state grant. I finally used a service called Claimyr (claimyr.com) that holds your place in line and calls you back when an agent is available. Saved me hours of frustration. They have a demo video showing how it works: https://youtu.be/TbC8dZQWYNQ. Totally worth it for peace of mind.
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Mateo Rodriguez
•That's actually really helpful! I was dreading sitting on hold forever. I'll check out that service if MHEC tells me I need to contact FSA directly. Did they resolve your issue in one call?
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Carmen Diaz
the same thing happend to me actually!!! turns out my dad put down the wrong amount for education credits on fasfa. we had to send in a copy of the actual tax return (line 29 i think?) and then they fixed it but it took FOREVER. like almost a month. you should call asap!!!
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Mateo Rodriguez
•A MONTH??!! That's crazy! Did calling help speed things up at all? I'm definitely calling first thing tomorrow morning.
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Andre Laurent
my neighbor works in financial aid at towson and she says this is like super common with the maryland state scholarships this year. apparently the new fafsa system is causing all kinds of verification issues with state programs. but don't freak out, schools know about it and most are putting holds on tuition due dates for students with pending state aid
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Mateo Rodriguez
•That's reassuring to hear! My son is going to Towson actually! I was worried about missing payment deadlines. I'll still call tomorrow, but it's good to know the school might be flexible with the deadline if this takes a while to resolve.
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GalaxyGuardian
Just to follow up on my earlier comment - make sure when you call MHEC that you ask if they need the correction to come from FSA or if they can accept documentation directly. Some state scholarship programs allow you to submit the correction documentation to them directly, which can be much faster than waiting for an updated FAFSA to process through the system.
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Mateo Rodriguez
•That's a great tip! I'll definitely ask about submitting documentation directly to them. I have all our tax forms ready to go, so if they can accept those directly, that would save so much time.
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AstroAce
I'm a financial aid counselor (not in MD though). The Parent_IRS_EdCredit_01 error typically means there's a validation issue between what you reported for education credits and what the IRS has on file. The problem is that with the new FAFSA, many of these verification flags are triggering unnecessarily. Here's what I recommend: 1. Call MHEC first thing tomorrow 2. Have your 1040 form ready (specifically looking at line 29) 3. Request an expedited review due to approaching payment deadlines 4. Ask if they need the correction from FSA or if they'll accept direct documentation 5. If they require FSA correction, ask for the specific steps they recommend Many schools are being flexible this year due to the FAFSA delays and verification issues. Have your son check with his school's financial aid office about possibly extending payment deadlines while this gets resolved.
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Mateo Rodriguez
•This is incredibly helpful, thank you! I have my tax forms ready to go and will follow these exact steps. My son has already emailed his financial aid office at school to let them know about the situation too. Fingers crossed this gets resolved quickly!
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Aisha Abdullah
btw one more thing... when my brother had this problem we finally got through to someone who explained that for Maryland scholarships specifically, if the FAFSA correction takes too long, you can request an emergency review. you need to ask for this specifically though, they won't offer it unless you know to ask!
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Mateo Rodriguez
•Oh that's a great tip! I'll definitely ask about an emergency review when I call. Fall classes start in just over a month so we really need to get this resolved. Thanks for the insider info!
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