verification - definition process of verifying accuracy of free application for federal student aid...
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Verification - Definition
Process of verifying accuracy of Free Application for Federal Student Aid (FAFSA) data
Regulations define: Whose application must be verified (WHO)
FAFSA information to be verified (WHAT)
Documentation used to verify data elements (HOW)
Regardless of verification selection, you must always resolve discrepancies and conflicting information
Selection Process (WHO)
Students can be selected for verification in two ways:1. By the Central Processing System (CPS) during
the processing of application data, either randomly or based on predetermined criteria edits. (notated on the ISIR with an asterisk (*) next to the Expected Family Contribution (EFC), and tracking flag notates which selection group)
2. By the institution, based on its own verification policies, if it chooses to broaden its verification efforts beyond the CPS edits
Verification Tracking Groups
Standard (V1)Child Support Paid (V3)Custom (V4)Aggregate (V5)Household Resources
(V6)
Verification Tracking Flag V1 – Standard Verification Group RequirementsTax Filers:• Adjusted Gross Income• U.S. Income Tax Paid• Untaxed Portions of Individual Retirement Account (IRA) Distributions• Untaxed Portions of Pensions• IRA Deductions and Payments• Tax Exempt Interest Income• Education Credits• Number of Household Members• Number in College• Supplemental Nutrition Assistance Program (SNAP), if included on the
ISIR• Child Support Paid, if included on the ISIRNontax Filers• Income Earned from Work• Number of Household Members• Number in College• Supplemental Nutrition Assistance Program (SNAP), if included on the
ISIR• Child Support Paid, if included on the ISIR
Verification Tracking Flag V3 – Child Support Paid Verification Group Requirements• Child support paid by the student (or spouse), the student’s parent, or
both
Verification Tracking Flag V4 – Custom Verification Group Requirements• High School Completion Status• Identity/Statement of Educational Purpose• Supplemental Nutrition Assistance Program (SNAP), if included on the
ISIR• Child Support Paid, if included on the ISIR
Verification Tracking Flag V5 – Aggregate Verification Group Requirements• Combination of V1 and V4 requirements
Verification Tracking Flag V6 – Household Resources Verification Group Requirements
• Information from V1
• Other Untaxed Income on the 14-15 FAFSA for both Tax Filers and Nontax Filers
• Payment to tax-deferred pensions and savings
• Child support received
• Housing, food, and other living allowances paid to members of the military, clergy and others
• Veterans non-educational benefits
• Other untaxed income
• Money received or paid on the applicant’s behalf
Information to Verify (WHAT)
Documentation (HOW)
IRS Data Retrieval
IRS Transcripts
Signed copy of foreign tax return
Signed copy of income tax return – ONLY to be used in limited cases
Amended tax returns
Verification Worksheets
These are developed by each school
The Department gave suggested text to use, but will not require the use of the suggested text except for Identity/ Statement of Educational Purpose
W2s
Reviewing W2 Forms In addition to wages earned, the W2 form
may reveal sources of untaxed income, such as payments to tax-deferred pension and savings plan amounts reported on in boxes 12a through 12d, coded D, E, F, G, H and S.
Schools are not required to review income listed in box 14, however if you are aware that a box 14 item should be reported (i.e. clergy parsonage allowances) then you would count that amount as untaxed income.
Data Element Corrections
Verification corrections
Corrections are changes to data elements that were incorrect at the time of application
Incorrect data
Can change student’s eligibility for aid
Any change to a single dollar item of $25 or more must be reprocessed by CPS
Data correct as reported
Verification Updates
Updates are changes to data elements that were correct at the time of application but have since changed
Updates are allowable for the following:
Dependency status
Number in household
Number of household members
enrolled in college
Verification Status Codes
For all Federal Pell Grant recipients, the verification status code must be reported on the student’s origination record.
Interim Disbursements
Except for DL program, the institution has the option to make interim disbursements prior to the completion of verification IF no conflicting information exists and no reason to believe the information is inaccurate.
Institutions can make after verification but before valid ISIR if no change to T4 funds.
Options vary by T4 program
Verification Time Frames
Verification and Award Cycle
Left to discretion of school
Verification Deadlines
All required documents must be submitted by the institutionally-established deadline
Institution must have all requested documents before the earlier of 120 days from last attendance or annual deadline in Federal Register
Verification Policies and Procedures
MUST
Be written
Address school options where flexibility exists
Be made clear to all students
Be consistently applied
15-16 Verification - GEN-14-11
One change to the acceptable documentation from the 14-15 requirements as published in last year’s Federal Register notice on June 13, 2013 and summarized in GEN-13-16. Provided guidance on State-approved tests that would meet the requirements of being equivalent to a high school diploma.
How FAAs feel about verification
