<p>I completed the FAFSA and used the IRS data retrieval tool. Only now I learn that I have to amend my taxes. Since I’m a grad student, the amendment actually doesn’t affect my eligibility for loans (I checked multiple times with the FAFSA office and they confirmed this). Can my loans be processed by my university while the tax amendment is being processed by the IRS, since I already used the Data Retrieval tool and the IRS and FAFSA aren’t linked? The FAFSA office told me to wait until my loans processed before updating the FAFSA, in order to avoid confusion, since the tax issue doesn’t have anything to do with loan eligibility. But can it even happen to begin with? I need to meet school deadlines and can’t wait to make my loan application until the IRS amends my return. </p>
<p>Yes they can. </p>
<p>Just so I’m educated, how can they? (I’m not questioning – I’m curious)</p>
<p>So it’s ok to make my loan application with my school while my amendment is going through, i.e., the application won’t get rejected?</p>
<p>Bump</p>
<p>Your aid can go through. The school has no idea you are amending your taxes, so it’s not on their radar. If your amended return changes the tax info on your FAFSA (such as AGI or taxes paid), you will need to adjust those numbers on the FAFSA. If you are a grad student who is only getting unsubsidized and Grad PLUS loans, it won’t affect your aid at all … those loans are not dependent on your EFC.</p>
<p>I told my school I would amend, but like you said, it doesn’t affect my loans because I’m a grad student. What happens once I amend? Do I just give my school a copy of the amended return? </p>
<p>I havent’ amended yet. My accountant said I had two years to.</p>
<p>I’d guess all you’d have to do is update your FAFSA using the data retrieval tool after the amendment is processed - your grad school will get a copy automatically (as long as you list that school when you update your FAFSA). I’d check with the IRS, though, to find out how long it generally takes for an amendment to be processed. And I probably wouldn’t wait two years to do it . . . ;)</p>
<p>Filing an amended return makes you ineligible to use the DRT. If documentation would be required you’d have to get a tax transcript. But as you say, this isn’t going to affect your aid.</p>
<p><a href=“https://fafsa.ed.gov/help/irshlp9.htm”>https://fafsa.ed.gov/help/irshlp9.htm</a></p>
<p>You can go ahead and apply for your loans. As your amended return does not affect your loan situation, it’s not going to make any difference. If you are ever audited, it would be clear that you got all unsubsidized loans that were not affected by your EFC changes. Where it becomes an issues is if you did get subsidized loans as it could become a pain to restructure those loans so that the interest accruals start. Your school fin aid office probably gave you a blanket response as they would want everything set up the way it should be to process. </p>
<p>Well, I don’t get subsidized loans, because I’m a grad student. And since I already used the DRT, I was warned against changing any of that info myself later – FAFSA said it would screw it up. So, what – give my school the amended return? Don’t worry I won’t wait two years!!! </p>