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Session #34

Verification

Marianna Deeken
Virginia Hagins
What is Verification?
• Process by which certain
required data reported on the
FAFSA is reviewed for accuracy
and completeness
–To protect taxpayer dollars and
program integrity
Required Policies and
Procedures
• Applicant’s responsibilities
• Clear explanation of documentation
requirements
• Deadlines for student to provide
documentation and consequences of
failure to meet deadlines
• Method by which student is notified of
award changes resulting from verification
• Procedures for correction of FAFSA data
• Procedures for referring overpayments to
ED
Notice to Selected Students
• School must provide a written
statement providing a clear
explanation of the documentation
requirements and the applicant’s
responsibilities with regard to the
verification process
How Are Applicants Selected?
• CPS selection
 Edit checks which identify
inconsistencies and potential
errors
 Random selection
• School selection
 Criteria set by school
Verification Exclusions
• Student is incarcerated
• Student is recent immigrant –
either calendar year of award year
• Student is deceased
• Student is Pacific Island resident
• Spouse/parent unavailable
 Physical or mental incapacity
 Lives in foreign country and
cannot be reached through
normal means of communication
How Many Do I verify?
• Selected by the CPS
 General requirement to verify all
those selected by CPS
BUT
 May stop at 30% of your applicant
pool, if CPS selects more than
30%
30% Verification Option
• Could be total
• No school is
number of
required to verify students who
more than 30% of  Apply to the
its total number of school
Title IV applicants  Enroll at the
• School must define school
total number of  Receive Title IV
Title IV applicants aid
 Have an ISIR
received by the
school
What Do I Verify?
• Required for CPS-selected applicant
 Adjusted Gross Income (AGI)
 U.S. Income tax paid
 Household size
 Number in college
 Certain untaxed income and
benefits
What Do I Verify?
• Certain untaxed income and benefits
Social Security benefits
Child support
IRA/Keogh deductions
Foreign income exclusion
Earned Income Credit
Interest on tax-free bonds
What Do I Verify?
• School-selected applicants
 School determines data elements
to be verified
 Need not verify all required federal
data elements
What Documents Do I Need?
• For taxable income,
base year tax return
• For untaxed income
and benefits:
 Verification
worksheet
 Official agency
documentation
 Signed statement
• See FSA Handbook
How Do I Complete the
Process?
• Compare the verification documents with
the original FAFSA information
 May create own checklist/spreadsheet
 May use verification tool on FAA Access
• Determine that
 information is correct
or
 corrections must be made
• May use tolerance option if all errors are
dollar amount errors
Tax Return Data
Tax Return Data
ISIR Data
Tax Return Filed? WILL FILE
Type of 2006 Tax Return Used 1040
Eligible to File 1040A or 1040EZ? N0
Adjusted Gross Income 45007
U.S. Income Tax Paid 3311
Exemptions Claimed 03
Father's Income Earned From Work 40000
Mother's Income Earned From Work 0
Total from Worksheet A 0
Total from Worksheet B 0
Total from Worksheet C 0
Sample Comparison
ISIR Data Tax Return Match?
Data
AGI $45,007 $40,227 No
Taxes $ 2,629 $ 3,311 No
Paid
Wkst A $0 $0 Yes
Wkst B $0 $ 1,500 No
This ISIR requires correction!
Verification Status Codes
• Used when reporting Pell, ACG,
SMART and Direct Loan payments to
COD
 V - Verified
 S - Selected, but not verified
 W - Paid without Documentation
 Blank - ISIR not selected by CPS
or school
Verification Tolerance
• No recalculation or reprocessing
necessary if
 There is no change in non-dollar
items used to calculate EFC
AND
 There is no dollar error in excess
of $400 as calculated by the
following formula
$400 Net Tolerance Option

Original Data Corrected Data

Total Income Total Income


− Taxes Paid − Taxes Paid
=Total = Total
Compare the two totals:
Dollar change amount < or = to $400
Interim Disbursements
If there is no conflicting documentation:
• For Pell, ACG, National SMART Grant,
FSEOG and Perkins
 May make one disbursement for
applicant’s first payment period
• For FWS, employee may work for a
maximum of 60 consecutive days from
start of enrollment
• For Direct Loan and FFEL
 May certify/originate subsidized loans
 May certify/originate/disburse
unsubsidized and PLUS
Verification Deadline
• By the earlier of 120 calendar
days after student’s last date of
enrollment OR date specified in
Federal Register:
 Student must provide all
verification documentation
 ISIR must be corrected, if
necessary
Update Applicant Information
• For all students, must always update
dependency status if it changes
during an award year*
• For students selected for verification
by CPS, must always update
household size and number in
college at the time of verification*
*Unless the reason is a change in the
student’s marital status
Remember
• Conflicting information must be
resolved, regardless of verification
status
• Separate process from verification
Involves any information of
which the school has knowledge
Must resolve before disbursing
any aid
Contacts
We appreciate your feedback and
comments.
We can be reached at:
Marianna Deeken
• Phone: (206) 615-2583
• Email: marianna.deeken@ed.gov

Virginia Hagins
• Phone: (415) 486-5621
• Email: virginia.w.hagins@ed.gov
Please provide any comments
regarding this training or the
trainers to:

Jo Ann Borel
Title IV Training Supervisor
joann.borel@ed.gov
202-377-3930