Did you know that the Higher Education Opportunity Act (HEOA) changed the requirements for FAFSA preparers? Effective August 14, 2008, only persons who are paid a fee to help the student complete the FAFSA are considered preparers. Those who advise students without charging a fee, such as high school counselors and financial aid administrators, are not preparers.

Preparers must include their name, their company’s name (if applicable), their address or the company address, and either their SSN or the company Employer Identification Number (EIN, as assigned by the IRS). With the paper FAFSA, the preparer must also sign and date the form. The wording for the related questions on the 2009-10 FAFSA has been updated.

Preparers must also:

• Clearly inform each individual upon initial contact, including via the Internet or phone, that the FAFSA is free and can be completed electronically or on paper without professional help
• Include in any advertising clear and conspicuous information that the FAFSA is free and can be completed electronically or on paper without professional help
• Link their web site, if they use one to advertise or provide information or services to consumers, to FAFSA on the Web
• Not produce, use, or disseminate any form other than the FAFSA for the purpose of applying for Title IV aid.

A preparer who knowingly provides false or misleading information on the application is subject to the same penalties as an applicant.

A preparer is permitted to collect source information from a student or parent, including IRS tax forms, in providing consultative and preparation services in completing the FAFSA.