On May 1, 2025, the Department of Education issued Electronic Announcement ID APP-25-14, confirming the general availability of automated NSLDS post-screening for the 2024–25 and 2025–26 FAFSA cycles. After a multi-month delay and phased implementation, the Department has now resumed weekly post-screening delivery of ISIRs with updated student eligibility data—changes that have significant implications for financial aid administrators (FAAs).
What Is NSLDS Post-Screening?
Post-screening refers to the periodic review of a student’s financial aid eligibility using updated National Student Loan Data System (NSLDS) information, such as changes in Pell Lifetime Eligibility Used (LEU), loan defaults or overpayments. Institutions receive updated Institutional Student Information Records (ISIRs) when a change occurs that might impact a student’s eligibility for Title IV aid.
This process helps ensure that aid is awarded and disbursed based on the most current federal data, reinforcing compliance and reducing overawards and potential liabilities.
Key Updates from the Announcement
- Resumption of Weekly Post-Screening: Beginning the week of May 5, 2025, the Department resumed weekly delivery of ISIRs that include post-screening reason codes for both the 2024-25 and 2025-26 aid years.
- Delivery Channels: Institutions will receive these ISIRs via their SAIG mailboxes—IGSG25OP for 2024-25 and IGSG26OP for 2025-26.
- Reason Codes: Up to three post-screening reason codes may be listed on an ISIR (found in positions 3877 to 3882), indicating the nature of the eligibility change. For example, a change from “close to Pell LEU limit” (Code 22) to “no longer close” (Code 23).
- High Volume Warning: A high volume of ISIRs is expected during the first two weeks as institutions begin receiving backlogged records.
May 8, 2025: Correction Notice
A critical update was issued just days after the general release. An error during the initial implementation caused some students’ post-screening data to reflect an earlier ISIR transaction instead of the most recent one. The Department is actively working to regenerate and deliver corrected ISIRs, which will include a new transaction number and a FAFSA Processing System (FPS) Correction Reason of “NSLDS Postscreening.”
Action for FAAs: Institutions should not finalize awards or disbursements based solely on this week’s (early May) ISIRs. Instead, review a student’s full ISIR history and wait for the corrected records to be delivered in the coming days.
Workflow Implications for Financial Aid Offices
This resumed functionality affects multiple points in a typical FAA’s workflow:
- ISIR Review Processes:
- Offices must now actively monitor incoming ISIRs for post-screening reason codes and understand their implications.
- Staff will need to verify which transaction is the most current and relevant for determining eligibility.
- Awarding and Disbursement:
- Aid that has been packaged based on outdated NSLDS information may require re-evaluation, especially if changes in LEU, default status or other eligibility markers are identified.
- Institutions must consult guidance in APP-25-02 regarding responsibilities for resolving discrepancies prior to disbursement.
- System Configuration and Automation:
- Institutions relying on automated workflows must ensure that internal systems correctly interpret and act upon the newly resumed post-screening reason codes.
- Temporary delays or overrides may be needed to avoid acting prematurely on erroneous ISIRs from early May.
- Staff Training and Communication:
- Ensure staff are up to date on interpreting NSLDS post-screening data and ISIR positions.
- Consider developing an internal quick-reference guide or decision tree to streamline responses to various reason codes.
Final Thoughts
After a lengthy pause, the resumption of NSLDS post-screening adds an important layer of accountability back into the Title IV processing ecosystem—but it also demands renewed diligence from aid professionals. The early processing hiccups underscore the need for a careful, measured approach as we transition back to this critical data feed.
Stay alert for further updates from the Department and be ready to adapt your workflows as corrected ISIRs are released. When used effectively, post-screening helps ensure that limited aid dollars are responsibly administered and that students’ eligibility is accurately maintained throughout the award year.
At HEAG, we understand the complexities and shifting demands that come with updates like the resumption of NSLDS post-screening. Our team of experienced financial aid consultants is prepared to assist institutions in interpreting these changes, troubleshooting processing challenges and ensuring that your office remains compliant with federal requirements. Whether you need help analyzing ISIR data, updating internal workflows, or training staff on best practices, HEAG is here to support you every step of the way so that your operations remain efficient, accurate and student-focused. You can reach out to us at info@heag.us for support.
Additional Resources & References:
- APP-25-14 Electronic Announcement
- APP-25-02: Institutional Responsibilities for NSLDS Post-Screening
- NSLDS Customer Support: nslds@ed.gov | 1-800-999-8219
- SAIG/FPS Help Desk: support@fps.ed.gov | 1-800-330-5947