15. More Dirt on the DRT
The FAFSA can now extract the student’s and parent’s data from their 1040s via the ‘Data Retrieval Tool’ (DRT). This make things ‘convenient’ but may decrease your eligibility for financial aid. The DRT apparently does not have built-in logic to detect excludable IRA rollover amounts and many other transactions common to financial planning.
All is not lost as edits are possible on the FAFSA… which triggers a ‘flag’ for the Financial Aid Administrator at the school to request ‘verification.’ Simply bring in your financial documents and verified corrections can be made… providing you with the correct eligibility for Federal need-based financial aid.
Talk to your financial planner if you have questions!