Future Act (6103 Exemption)
Investment ID: 018-000002054
Overview
Program Title
Future Act (6103 Exemption)
Description
The investment enables the implementation of the Fostering Undergraduate Talent by Unlocking Resources for Education Act (FUTURE Act), which allows the Internal Revenue Service (IRS) to disclose certain federal tax information (FTI) to the U.S. Department of Education (ED) for the purposes of determining eligibility for recertifications for income-contingent or income-based repayments of student loans, discharges of loans based on total and permanent disability, and the amount of student financial aid under the Higher Education Act of 1965 (HEA). The implementation of the FUTURE Act requires numerous systems changes and security upgrades in the Office of Federal Student Aid (FSA) to comply with both IRS security requirements and the provisions of the Act itself.
Type of Program
Major IT Investments
Multi-Agency Category
Not Applicable
Shared Services
Investment Detail
1. A reduction of up to $8.7 million in reimbursement obligations to the IRS annually. 2. A reduction of $432 million in the annual income verification costs to schools. 3. A significant impact on the annual $498 million improper payments caused by incorrect self-reported data on the FAFSA form. 4. A significant reduction on the volume of manual income verification for up to 4.4 million annual FAFSA applicants. 5. Automatically receive income information from more than 2 million borrowers who failed to certify their income under various income-driven repayment (IDR) plans. 6. Automatically receive income information from more than 65,000 borrowers who failed to certify their income under the total and permanent disability discharge program.