Verification embracing you with knowledge of comfort
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Transcript Verification embracing you with knowledge of comfort
Verification
enlightening you with knowledge
of comfort & cushion
“The Foundation”
Presented by:
Rosie Toney
Verification is….
The audit process of reviewing
and determining a students
eligibility for Title IV
assistance.
Verification is….
Process of verifying accuracy of FAFSA data
Regulations define:
Whose application must be verified
Data elements to be verified
Documentation used to verify data elements
Regardless of verification selection, we also must
resolve discrepancies and conflicting information
Session Topics
Whose application must be verified
Which data application must be verified
Acceptable Documentation
Data Element Corrections
Data Element Updates
Verification Time Frames
Policies and Procedures
Whose Application Must Be
Verified?
Applicants selected by Central Processing
System (CPS), either randomly or by
verification edits
Applications selected by institution
ISIRs for CPSSelected Applications
ISIR contains asterisk (*) next to EFC
Verification flag set to:
“Y” if selected during initial processing
“Asterisk” if selected on a subsequent transaction
Comment in comments section
SARs for CPSSelected Applications
Asterisk next to EFC
Comment in student section of first page
Verification flag in “For Financial Aid
Office Use Only” section set to “Y”
Programs to Which
Verification Applies
Federal Pell Grant
Campus-based Programs
Subsidized FFEL & Direct Student Loans
30% Verification Option
30% is cap, not minimum
Applications making up 30% must be CPS-selected
If more than 30% selected by CPS, may choose to
verify more than 30%
Document files of CPS-selected applicants not verified
30% option does not relieve institution of responsibility
to resolve conflicting data
Calculating 30% , Step by Step
Step 1: Define applicant
Step 2: Determine total number
of applicants at institution
Step 3: Calculate 30% of total number
of applicants
Selecting the 30%
Institutions have flexibility in selecting which
applicants make up 30%
May use Verification Tracking Flag on ISIR
Priority number 0001 to 9999
Higher number = greater likelihood of errors
ED does not require, but encourages its use
ED does not release criteria for priority
numbers
Institution may self-select some variables
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 vs. number in college
Completion of certain FAFSA data elements
Other institutional criteria
Exclusions From Verification
Certain types of applicants and data elements
exempt from verification
Reason for verification exclusion should be
documented in student’s file
If conflicting information or reason to believe
application information is inaccurate,
exclusions do not apply
Exclusions From Verification
Exclusions include or are limited to:
Entire application—student & parent data
Applicant’s spousal data only
Certain data elements
Required Verification Fields
Number in household
Number of household
members in college
Adjusted Gross Income (AGI)
U.S. income tax paid
Untaxed Income & Benefits
Required Verification Fields
Certain untaxed income &
benefits
Social Security Benefits
Child support received
Untaxed IRA/Keogh
deductions
Foreign income exclusion
Earned income credit (EIC)
Interest on tax-free bonds
Other untaxed income
included on tax return
Items That May Be Verified
Using the Tax Return
Adjusted Gross Income
U. S. Income Tax Paid
Untaxed IRA/Keogh
deductions
Earned Income Credit (EIC)
Tax-exempt interest income
Foreign income exclusion
Untaxed pensions & SSI
Untaxed IRA
Additional child tax credit
Acceptable Tax Returns
Form 1040
Form 1040A
Form 1040EZ
Amended 1040X with regular copy
of Form 1040
IRS printout with all line items
Acceptable Tax Return
Requirements
***ALL Tax Returns must have the following for
Tax Preparer &
Verification Signature Requirements***
ONE of these and ONE of these:
Stamped Name
SSN
Typed Name
EIN (Employee Identification Number)
Signed Name
PIN (Preparer Tax Identification Number)
Printed Name
Non-Acceptable Tax Documents
Federal Return RECAP
Form 8453
E-file Authorization Form
Short TAX Version Summary (s)
Tax Filing Extensions
Collect w-2 and one of the
following:
IRS From 4886; or
Copy of IRS approval of
extension beyond
4-month extension
Collect and review the tax
return when filed
Separating Data on Joint Returns
Use w-2 to identify individual’s personal income
Assess income & losses on jointly-owned accounts,
investments, businesses, & farms at 50%
If AGI in joint return was adjusted, reduce individual’s
AGI by portion of adjustment attributable to that
individual
Figure taxes paid using:
Tax rate schedule; or
Proportional distribution method
Social Security Benefits
Documentation
Statement from SSA certifying amount received
OR
Statement signed by applicant & dependent
applicant’s parent (s), certifying that amount listed
on application is correct
Child Support Documentation
Obtain verification worksheet or written
statement certifying amount of child support
received for all children
Statement must be signed by applicant & 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
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 cancelled child support checks or money order
receipts
Household Individuals
Verification worksheet should include the
following:
Name
Age
Relationship to applicant
Postsecondary school stated (if applicable)
Verification Corrections
Changes to data elements that were incorrect at
time of application
Data correct as reported and valid ISIR/SAR:
Pay Federal Pell Grant, FSEOG, & Federal Perkins Loan
Employ students under Federal Work-study Program
Certify/originate & disburse FFEL/Direct Loans
Tolerance Option
$400 net error tolerance for all Title IV Programs
FAFSA
Parent AGI
+ Student AGI
+ Parent Untaxed Income
+ Student Untaxed Income
-Parent U.S. Taxes Paid
-Student U.S. Taxes Paid
=FAFSA data (uncorrected sum)
Net differences:≤$400
Correct
Parent AGI
+ Student AGI
+ Parent Untaxed Income
+ Student Untaxed Income
-Parent U.S. Taxes Paid
-Student U.S. Taxes Paid
=Correct data (corrected sum)
Tolerance Option—Example 1:
Parent AGI
Parent Untaxed Income
Student AGI
Student Untaxed Income
Parent U.S. Taxes Paid
Student U.S. Taxes Paid
Net difference:
FAFSA Data
$ 15,800
+ 1,200
+ 9,200
+
0
- 500
- 200
=$25,500
$25,500-$26,000 = -$500
Correct Data
$ 15,500
+ 1,500
+ 9,200
+
0
0
- 200
=$26,000
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
Verification Updates
ALL students must update
dependency status if it
changes at any time
Cannot be updated if it
changes as result of change
in marital status
Verification Time Frames
Institutions are responsible to establish deadline
dates
Institution must receive all requested verification
documents and a valid ISIR/SAR within 120 days
of the students last day of attendance or the
deadline published in the Federal Register or:
Federal Pell Grant is forfeited
Any previously disbursed/paid PELL must be returned
Verification Status Codes
V—Verified
W—Without Documentation
S—Selected/Not Verified
Blank—Not Verified
Case Study (s)
Purpose to V.E.R.I.F.Y.
V—various documents & attitudes encountered
E—efficient eyes needed to pinpoint mistakes & errors to
embrace a student’s eligibility
R—regulations & readiness to learn rules and resources
I—importance of interpreting documents
F—field items required for review
Y—youthful spirit needed to keep our customers happy
Verification Policy &
Procedures
Must:
Be Written
Address school options where flexibility exists
Be made clear to all students
Be consistently applied
Verification Policy &
Procedures (cont.)
Must include:
Procedures from 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
Verification Policy &
Procedures (cont.)
Method for notifying applicant of verification
results and change in EFC and/or award
Procedures for referring cases or suspected fraud
or other criminal misconduct to ED Office of
Inspector General
RECAP
Verification is….
Lifetime learning process, not done overnight
It takes a few months or years to master
To audit/review a students data to check for accuracy
You should be able to…
Identify acceptable documents
Tax Returns
Signature Requirements
Untaxed Income & Benefits
Tolerance Level
Traditional vs. Non-traditional
Household
Database C-code Match (s )
Citizenship
Students must be a
U.S. citizen
U.S. permanent resident
Eligible non-citizen
Social Security
Result
Match conducted SSA confirmed
Comment
Action needed
No comment
No resolution required
SSA did not confirm citizenship
Comment Listed on
SAR/ISIR
If
U.S. Citizen—documents required
If DHS matched ( for eligible non-citizen)—
no resolution required
SSA did not confirm citizenship, no
match on SSN, name or date of birth
Comment Listed on
SAR/ISIR
Resolution required
Selective Service
How can one register?
Who is required?
FAFSA or on-line
Men of ages 18 through 25 are
required to register.
Contact Information:
www.sss.gov
1-847-688-6888
Veteran’s Match
Status Confirmed
Not a qualifying Veteran
No data in VA database
On Active Duty
Drug Conviction/Prisoner
Match
Student is responsible for
contacting Department of
Education
Contact #: 1-800-433-3243
Aggregate Loan Limit or
NSLDS Match
Remember to monitor the loan limits
Undergraduate
Graduate
$23,000 (sub or unsub)
$65,500 (sub)
$73,000 (unsub)
Question/Comments
Works Cited
www.ifap.ed.gov
www.office.microsoft.com
www.nasfaa.org