Verification - Definition
Process of verifying accuracy of
Free Application for Federal
Student Aid (FAFSA) data
Regulations define:
 Whose application must be verified (WHO)
 FAFSA information to be verified (WHAT)
 Documentation used to verify data elements (HOW)
 Regardless of verification selection, you
must always resolve discrepancies and
conflicting information
Selection Process (WHO)
Students can be selected for
verification in two ways:
1. By the Central Processing System (CPS)
during the processing of application data,
either randomly or based on predetermined
criteria edits. (notated on the ISIR with an
asterisk (*) next to the Expected Family
Contribution (EFC), and tracking flag notates
which selection group)
2. By the institution, based on its own
verification policies, if it chooses to broaden
its verification efforts beyond the CPS edits
Verification Tracking Groups
Standard (V1)
Child Support Paid (V3)
Custom (V4)
Aggregate (V5)
Household Resources
(V6)
Verification Tracking Flag V1 – Standard Verification Group
Requirements
Tax Filers:
• Adjusted Gross Income
• U.S. Income Tax Paid
• Untaxed Portions of Individual Retirement Account (IRA) Distributions
• Untaxed Portions of Pensions
• IRA Deductions and Payments
• Tax Exempt Interest Income
• Education Credits
• Number of Household Members
• Number in College
• Supplemental Nutrition Assistance Program (SNAP), if included on the
ISIR
• Child Support Paid, if included on the ISIR
Nontax Filers
• Income Earned from Work
• Number of Household Members
• Number in College
• Supplemental Nutrition Assistance Program (SNAP), if included on the
ISIR
• Child Support Paid, if included on the ISIR
Verification Tracking Flag V3 – Child Support Paid Verification
Group Requirements
• Child support paid by the student (or spouse), the student’s parent, or
both
Verification Tracking Flag V4 – Custom Verification Group
Requirements
• High School Completion Status
• Identity/Statement of Educational Purpose
• Supplemental Nutrition Assistance Program (SNAP), if included on the
ISIR
• Child Support Paid, if included on the ISIR
Verification Tracking Flag V5 – Aggregate Verification Group
Requirements
• Combination of V1 and V4 requirements
 Verification Tracking Flag V6 – Household Resources
Verification Group Requirements
• Information from V1
• Other Untaxed Income on the 14-15 FAFSA for both Tax Filers and
Nontax Filers
•
Payment to tax-deferred pensions and savings
•
Child support received
•
Housing, food, and other living allowances paid to members of the
military, clergy and others
•
Veterans non-educational benefits
•
Other untaxed income
•
Money received or paid on the applicant’s behalf
Information to Verify (WHAT)
Documentation (HOW)
 Verification Worksheets
 These are developed by
each school
 The Department gave
suggested text to use,
but will not require the
use of the suggested
text except for Identity/
Statement of
Educational Purpose
 W2s
 IRS Data Retrieval
 IRS Transcripts
 Signed copy of foreign tax
return
 Signed copy of income tax
return – ONLY to be used
in limited cases
 Amended tax returns
Reviewing W2 Forms
 In addition to wages earned, the W2 form
may reveal sources of untaxed income,
such as payments to tax-deferred pension
and savings plan amounts reported on in
boxes 12a through 12d, coded D, E, F, G, H
and S.
 Schools are not required to review income
listed in box 14, however if you are aware
that a box 14 item should be reported (i.e.
clergy parsonage allowances) then you
would count that amount as untaxed
income.
Data Element Corrections
 Verification corrections
 Corrections are changes to data elements
that were incorrect at the time of
application
 Incorrect data
 Can change student’s eligibility for aid
 Any change to a single dollar item of $25 or
more must be reprocessed by CPS
 Data correct as reported
Verification Updates
 Updates are changes to data elements that
were correct at the time of application but
have since changed
 Updates are allowable for the following:
 Dependency status
 Number in household
 Number of household members
enrolled in college
Verification Status Codes
 For all Federal
Pell Grant
recipients, the
verification
status code
must be
reported on the
student’s
origination
record.
Interim Disbursements
 Except for DL program, the
institution has the option to make
interim disbursements prior to the
completion of verification IF no
conflicting information exists and
no reason to believe the
information is inaccurate.
 Institutions can make after
verification but before valid
ISIR if no change to T4 funds.
 Options vary by T4 program
Verification
Time Frames
 Verification and Award Cycle
 Left to discretion of
school
 Verification Deadlines
 All required documents
must be submitted by the
institutionally-established
deadline
 Institution must have all
requested documents
before the earlier of 120
days from last attendance
or annual deadline in
Federal Register
Verification Policies and
Procedures
 MUST
Be written
Address school options where flexibility
exists
Be made clear to all students
Be consistently applied
15-16 Verification - GEN-14-11
 One change to the acceptable
documentation from the 14-15
requirements as published in last year’s
Federal Register notice on June 13, 2013
and summarized in GEN-13-16. Provided
guidance on State-approved tests that
would meet the requirements of being
equivalent to a high school diploma.
How FAAs
feel about
verification
Contact information
Jennifer Williams
Southern Arkansas University Tech
jwilliam@sautech.edu
870-574-4499