Transcript Verification

VERIFICATION
TASFAA 2012 ABC Workshop
Joseph Ruiz
Assistant Director Office of Student Financial
Assistance
2012-2013 Application & Verification Guide (AVG)
http://ifap.ed.gov/fsahandbook/attachments/1213AVG.pdf
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VERIFICATION TOPICS
 Policies and procedures
 Whose application must be verified
 Which data elements must be verified
 Acceptable documentation
 Data element corrections
 Data element updates
 Verification time frames
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VERIFICATION
 Process of verifying accuracy of FAFSA data
 Regulations define:
 Whose application must be verified
 Data elements to be verified
(AVG-76)
(AVG-78-80)
 Documentation used to verify data elements
(AVG-81)
 Regardless of verification selection, must always
resolve discrepancies and conflicting information
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VERIFICATION POLICIES AND
PROCEDURES
Must:
 Be written
 Address school options where flexibility exists
 Be made clear to all students
 Be consistently applied
(AVG-75)
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VERIFICATION POLICIES AND
PROCEDURES
Must include:
 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)
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WHOSE APPLICATION MUST BE
VERIFIED?
 Applicants selected by Central Processing System
(CPS)
 Applicants selected by institution
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PROGRAMS TO WHICH VERIFICATION
APPLIES
 Federal Pell Grant
 Campus-based programs
 Subsidized Direct Loan program
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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
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REQUIRED VERIFICATION DATA
 Household size
 Number enrolled in college
 Adjusted gross income (AGI)
 U.S. income tax paid, and
 Child Support Paid
 SNAP (Supplemental Nutrition Program)
(AVG-78)
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REQUIRED VERIFICATION DATA
ELEMENTS
Other untaxed income and benefits on the tax return
Tax-exempt interest
income
 Education Tax Credits
Deductible IRA or Keogh
payments
Untaxed IRA distributions
and pension or annuity
payments
(AVG-19)
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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.
o Tax Transcripts for
-Parents and dependent students-Independent students-compare names and check tax
year on all transripts
o www.irs.gov
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DOCUMENTATION CONTINUED
 Supporting c-flag documentation
-Please only accept a completed file
-Veteran Status
DD214
o Selective service
-Males must register and females need a birth certificate
o Citizenship-Pass Port
Certificate of naturalization
Permanent Resident Card
Birth Certificate
Certificate of Citizenship
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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
 If support paid through government agency, statement from
that agency is acceptable
(AVG -82)
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CHILD SUPPORT DOCUMENTATION
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-82-83)
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NUMBER IN HOUSEHOLD & 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
(AVG -80-81)
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VERIFICATION UPDATES
 Changes to data elements that were correct at time
of application but have since changed
 Applicable only to 3 items:
 Dependency status
 Number in household
 Number of household members enrolled in college
 Marital Status Discrepancy Case by Case Basis
(AVG 84-85)
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VERIFICATION UPDATES
Number in Household and Number in College
 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-85)
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VERIFICATION 2012-2013 AND BEYOND
 Schools must verify all cases selected. The 30% cap has been eliminated.
 Tolerance levels for dollar items has been eliminated. Instead, all changes must be
submitted to the CPS for reprocessing if the change is $25 or more. All nondollar item changes (e.g. household size/number in college) must also be
submitted.
 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.
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AVAILABLE RESOURCES
 Federal Student Aid Handbook
 Application and Verification Guide
http://ifap.ed.gov/fsahandbook/1112FSAHandbookAVG.html
 Institutional Policies and Procedures
 IRS Publication 17 found at www.irs.gov
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