Transcript Slide 1

National Association of Student
Financial Aid Administrators Presents …
Module 4
© 2013 NASFAA
• Process of verifying accuracy of Free Application
for Federal Student Aid (FAFSA) data
• Regulations define:
– Whose application must be verified
– FAFSA information to be verified
– Documentation used to verify data elements
• Regardless of verification selection, must always
resolve discrepancies and conflicting information
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Module Topics
• Whose application must be verified
• Quality Assurance (QA) Program
• Verification tracking groups and FAFSA
information to be verified
• Acceptable documentation
• Data element corrections
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Module Topics
• Data element updates
• Status codes
• Interim disbursements
• Verification time frames
• Policies and procedures
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Verification Selection Process
• Customized approach for 2013–14
• FAFSA information that must be verified:
– Will vary from applicant-to-applicant;
– May be information that is not used in
calculating applicant’s EFC; and
– May change from award year-to-award year
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Verification Tracking Groups
• For 2013–14, CPS-selected applicants
assigned to one of five verification tracking
• Each tracking group determines items to
be verified and required documentation
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Required Verification Data Items
• Adjusted gross income—AGI (tax filers)
• Untaxed income from tax return (tax filers)
– IRA deductions and payments
– Untaxed portions of pensions
– Education credits
– Tax-exempt interest income
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Required Verification Data Items
• U.S. income tax paid
• Income earned from work (nontax filers)
• Supplemental Nutrition Assistance Program
(SNAP) Benefits
• Child support paid
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Required Verification Data Items
• Number in household size
• Number in college
• High school completion status
• Identity/Statement of Educational
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Items That May Be Verified Using IRS
Data Retrieval Tool or Tax Transcript
• U.S. income tax paid
• Untaxed IRA distributions
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Items That May Be Verified Using IRS
Data Retrieval Tool or Tax Transcript
• Untaxed pensions
• Education credits
• IRA deductions and payments
• Tax-exempt interest
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Items That May Be Verified Using a
Tax Transcript
• Foreign income must be included on FAFSA,
even if it cannot be taken out of the country in
which it was earned
• Earned foreign income and taxes paid to a
central foreign government are treated in same
manner as U.S. income and taxes paid
• A foreign tax return is considered equivalent to
IRS Form 1040
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Verification Corrections
• Changes to data elements that were incorrect at
time of application
• If data are correct as reported and valid
Institutional Student Information Record (ISIR) or
Student Aid Report (SAR):
– Pay Federal Pell Grant, Iraq and Afghanistan Service
Grant (IASG), Federal Supplemental Educational
Opportunity Grant (FSEOG), Teacher Education
Assistance for College and Higher Education
(TEACH) Grant, and Federal Perkins Loan
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Verification Corrections
• If data correct as reported and valid
– Employ students under Federal Work-Study
– Originate and disburse Federal Direct Student
Loans (Direct Loans)
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Verification Updates
Number in household and number in college:
• If not selected, cannot update for changes
occurring after original application filed
• If not selected, institution not required to
monitor data element changes
• Institution may select applicants if it
believes data elements are inaccurate
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Verification Updates
• May require student to update dependency
status, household size, or number in college
if change results from change in student’s
marital status
• Must update household size if dependent
student’s parent remarries after application,
but before verification
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Verification Policies and Procedures
• Be written
• Address school options where flexibility
• Be made clear to all students
• Be consistently applied
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Slide 4-18 © 2013 NASFAA