Transcript Verification Groups

Verification
ABC Workshop
Verification
• Process of verifying accuracy of FAFSA data
• Regulations define:
• Whose application must be verified (AVG-77)
• Data elements to be verified (AVG-78-80)
• Documentation used to verify data elements (AVG-81)
• Regardless of verification selection, must always resolve
discrepancies and conflicting information
Verification Policies & Procedures
Must:
• Be written
• Address school options where flexibility exists
• Be made clear to all students
• Be consistently applied
(AVG-77)
• Procedures for identifying and processing selected applications
• Deadline for applicant to provide documentation
• Consequences of failure to meet deadline
• Procedures applicant must follow to correct application information
• Method for notifying applicant of verification results and change in EFC
and/or award
• Procedures for referring overpayments to ED
• Procedures for referring cases of suspected fraud or other criminal
misconduct to ED Office of Inspector General (Take it to your Director)
(AVG-75)
Whose Application Must Be Verified?
• Applicants selected by Central Processing
System (CPS)
• Applicants selected by institution
Programs to Which Verification Applies
• Federal Pell Grant
• Campus-based programs
• Subsidized Direct Loan program
Institutionally-Selected Applications
• Institution can select additional applications not selected by
CPS
• Selection may be based on such data elements as:
• Estimated tax figures
• Low family income levels
• Large household size or number in college
• Completion of certain FAFSA data elements
• Other institutional criteria
Required Verification Data
• Adjusted gross income (AGI)
• U.S. income tax paid
• Education credits
• Untaxed IRA distributions
• Untaxed pensions
• IRA deductions and
payments
• Tax-exempt interest
• Other untaxed income
• Income earned from work
• Household size
• Number in college
• Supplemental Nutrition
Assistance Program (SNAP)
• Child support paid
• High school completion status
• Identity/statement of educational
purpose
(AVG-78)
Verification Groups
Verification Tracking Flag
V1
Verification Tracking
Group
Standard Verification
Verification Description
Group is standard verification
V3
Child Support Paid
Verification
Group consist of only verifying Child Support paid
V4
Custom Verification
Group
Group consist of : SNAP, Child Support Paid, High School
Completion Status, and ID Proof/ Statement of
Educational Purpose.
V5
Aggregate Verification Group consist of V1 and V4 items: standard verification,
SNAP, Child Support Paid, High School Completion Status,
Group
and ID Proof/ Statement of Educational Purpose.
V6
Household Resources
Verification Group
Group consist of Other Untaxed Income, Standard
Verification, SNAP and Child Support Paid.
Standard Verification Group –V1
Tax Filers
 Adjusted gross income
 U.S. income tax paid
 Untaxed portions of IRA distributions
 Untaxed portions of pensions
 IRA deductions and payments
 Tax-exempt interest income
 Education credits
 Household size
 Number in college
 Supplemental Nutrition Assistance
Program (SNAP) benefits
 Child support paid
Non-Tax Filers
 Adjusted gross income
 U.S. income tax paid
 Untaxed portions of IRA
distributions
 Untaxed portions of pensions
 IRA deductions and payments
 Tax-exempt interest income
 Education credits
 Household size
 Number in college
 Supplemental Nutrition Assistance
Program (SNAP) benefits
 Child support paid
Child Support Paid Verification –V3
 Students must verify child support paid by: them, spouse and/or
parents.
 Ask student to print the form and sign statement.
Custom Verification –V4
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

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High school completion status
Identity statement of educational purpose
Child support paid
SNAP Benefits
Identity Statement of Educational Purpose
 “Out of Town” students can mail in Identity and Statement of Educational Purposes
and copy of a valid Government issued photo identification that was used while
signing the Identity and Statement of Educational Purposes form in front of notary
public.
 If unable to appear (out of town students who are registered for only online courses)
student will need to provide a copy of US Gov’t issued Photo, and original notarized
Statement of Educational Purpose. The student will need to mail in certification.
 Acceptable Identification for ID Proof for student are a valid US Gov’t issued Photo
ID (DL, temp DL, passport, military ID, etc.). High school ID’s will not be accepted.
 Statement of Educational Purpose and ID Proof must be signed at FA Office in front
of full-time employee.
Aggregate Verification –V5
 All verification data elements in the Standard
Verification – V1
 High school completion status
 Identity/statement of education purpose
Household Resources Verification –V6
• All verification data elements in the Standard Verification – V1
• Other untaxed income (FAFSA 2014-2015):
• Payments to tax deferred pensions and retirement savings plans (Q- 45a &
•
•
•
•
•
•
94a)
Child support received (Q- 45c & 94c)
Housing, food and other living allowance paid to member of the military,
clergy and others (Q- 45g & 94g)
Veterans’ noneducation benefits (Q- 45h & 94h)
Other untaxed income (Q- 45i & 94i)
Money received or paid on the applicant’s behalf (Q- 45j)
Resources or benefits not appearing on the FAFSA, such as a in-kind support
from relative or a government agency.
Acceptable Sources of Documentation
• IRS tax transcript listing tax return information
• Signed Verification Worksheet
• Please notice the age of the independent students that are submitting
a verification worksheet. There are 13 responses that will can make a
student independent under the age of 24.
• Tax Transcripts for parents and/or students
http://www.irs.gov/Individuals/Get-Transcript
(AVG -82)
Other Untaxed Income
• A statement giving the sources and amounts of income
• Statement must be signed by parents and/or student
• Copy of W-2 if applicable
• If you determine the total amount of untaxed income is not
sufficient to support the household; a detailed explanation
must be provided.
(AVG -86)
Household Size & Number in College
• Verification worksheet listing each household member’s:
• Name
• Age
• Relationship to applicant
• Postsecondary school (if any) attending at least half-time in
program leading to recognized educational credential
• If selected, data must be accurate as of verification
• If not selected, student can select their file to be selected
• If not selected, not required to monitor data element change
(AVG -86)
SNAP benefits
• Obtain verification worksheet or written statement certifying
receipt of the benefits
• Statement must be signed by applicant and at least one parent
(if dependent)
• Statement must be signed by applicant if independent
(AVG -87)
Child Support Documentation
• Obtain verification worksheet or written statement certifying
amount of child support received for all children
• Statement must be signed by applicant and at least one parent
(if dependent)
• Statement must be signed by applicant if independent
• Request additional documentation if information provided
appears inaccurate
• Copy of separation agreement or divorce decree
• Signed statement from parent providing support
• Copies of canceled child support checks or money order receipts
(AVG -87)
Acceptable Sources of Documentation
Supporting C-flag documentation
• Veteran Status
• DD214
• Selective service: males must register and females need a birth
certificate
• Citizenship
• Pass Port
• Certificate of naturalization
• Permanent Resident Card
• Birth Certificate
• Certificate of Citizenship
Reminders
• Schools must verify all files selected.
• Pell applicants selected for verification must complete process by the
published Federal Register deadline.
• The deadline expected for aid year 2014-2015 is September 28, 2015 or
• 120 days after the last day of the student enrollment.
• The regulations now clarify that verification must be completed on
selected applications (if selected by the CPS or the school) before a
school may exercise Professional Judgment. The results of verification &
PJ changes cannot be submitted on the same day.
• Conflicting documentation -- regardless of verification -- must still be
resolved.
Reminders
 When speaking to a student stress to request the tax return transcript not an account transcript.
Student(s) and/or Parent(s) who cannot obtain a tax return transcript:
 For student(s) and/or parent(s) who have been victims of identity theft, we will accept a signed copy
of the paper tax return and a copy of the IRS Form 14039 or filed police report or letter from IRS.
 For student(s)s and/or parent(s) who owe taxes and are not able to obtain a tax return transcript will
be required to submit the following: signed copy of 2012 paper tax return, communication from the
IRS stating request was unsuccessful signed by tax filer (ex: letter from IRS or screen shot print from
the online IRS website), and a completed and signed IRS form 4506T-EZ or 4506T listing the
institution as a third party.
 For student(s) and/or parent(s) who have filed an amended tax return, we will accept the tax return
transcript and Form 1040X (There is no need to wait for an account transcript.).
Available Resources
• Federal Student Aid Handbook
• Application and Verification Guide
http://www.ifap.ed.gov/fsahandbook/1415FSAHandbookAVG.html
• Institutional Policies and Procedures
• IRS Publication 17 found at www.irs.gov