Verification
2012 New Aid Officer Workshop
Consuela Mitchell
Director of Student Financial Aid Services
Tarrant County College-NE Campus
2012-2013 Application & Verification Guide (AVG)
Chapter 4 “Verification, Updates, and Corrections”
http://ifap.ed.gov/fsahandbook/attachments/1213AVGCh4.pdf
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Verification Topics
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Quality Assurance Program
Policies and procedures
Whose application must be verified
Verification requirements
Acceptable documentation
Data element corrections-vs-updates
Interim disbursements
Verification time frames
Changes beyond 2012-2013
Available resources
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Verification

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
(AVG-76)
(AVG-76)
(AVG-81)
Regardless of verification selection, must
always resolve discrepancies and conflicting
information
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Quality Assurance Program

Participation voluntary

ED provides guidelines, tools, and incentives for participation

Participating schools exempt from prescribed verification requirements

School sets verification parameters

School must reassess and self-correct verification process on ongoing
basis

Every other year – Random Sample must be completed

Quality Assurance Website: http://ifap.ed.gov/qahome/Default.html
(AVG-84)
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Verification Policies and
Procedures
Your school must have written P&P’s about:

Time period students must submit verification documentation,

Consequences for failing to submit documents in time,

Method school uses to notify students if their EFC and Title IV aid
amounts change,

Procedures school or students will follow to correct FAFSA data,

Procedure school will follow to refer a student to the Office of
Inspector General
(AVG-76)
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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

Subsidized student financial assistance
programs

Federal Pell Grant

Campus-based programs

Subsidized Direct Loan program
*excludes TEACH Grant, Direct Unsubsidized Loan, &
Direct PLUS Loan*
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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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Verification Exclusions



Certain types of applicants and data elements
exempt from verification
Reason for verification exclusion should be
documented in student’s file
Except in the case of student’s death, none of
the exclusions excuse school from requirement
to resolve conflicting information
(AVG-77)
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Verification Exclusions

Death of student

Not an aid recipient

Only eligible for unsubsidized student aid

Applicant verified by another school

Must get letter from school which completed verification that
includes transaction # of valid ISIR

Post enrollment

Few other exclusions
(AVG-77-78)
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Required Verification Data
Elements
12
Acceptable Documentation
(AVG-89)
13
Number in Household &
Number in College


Statement or verification worksheet listing each household
member’s:
 Name
 Age
 Relationship to applicant
 Postsecondary school (if any) attending at least halftime in an eligible college
If institution doubts statement, it should obtain statement
from each postsecondary institution listed by applicant
(AVG -80-81)
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Child Support PAID
If ISIR indicated student or parent paid
child support in 2011
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Child Support PAID
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)
16
SNAP benefits (food stamps)
If ISIR indicates someone in parents’ or
student’s HH received SNAP benefits in
2010 or 2011, student must provide
signed statement indicating receipt of
benefit
(AVG-82)
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Tolerance Option


$25 tolerance for any dollar item
No tolerance to non-dollar items like # in
HH & # in college
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Tax Filing Extensions

Collect W-2’s and one of following:



IRS Form 4868; or
Copy of IRS approval of extension
beyond 4-month extension
May collect and review tax return transcript when
filed
(AVG-79)
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Verification Corrections
For students not selected for verification, school
or student must correct and submit for processing
any errors reported on the original FAFSA that
would change the EFC or that determine the
students’ eligibility for aid.
(AVG 84)
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Verification Updates


FAFSA considered “snapshot” of family’s
financial situation as of date application was
submitted
After this date, only following items can be
updated:


Dependency status throughout the award year except
when the update is caused by a change in the student’s
marital status
Household size & # in college to be correct as of date of
verification unless change is due to change in the student’s
marital status
(AVG-82)
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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,


Cannot update for changes occurring after original
application filed
School not required to monitor data element change
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Verification Updates

Generally, cannot update change in student’s
marital status

Must update household size if dependent
student’s parent remarries after application,
before verification
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Professional Judgment


You must complete verification for a selected
student before you exercise professional
judgment to adjust any values that are used to
calculate the EFC.
But making a PJ adjustment does not require
you to verify an application that isn’t selected.
(AVG-76)
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Interim Disbursements
In the absence of conflicting information or reason to
believe information is inaccurate, institutions have the
following disbursement options when verification still
incomplete (school liable for overpayment):

Federal Pell Grant and campus-based programs:



Withhold payment
Make 1 disbursement for 1st payment period
Employ applicant up to 60 days under FWS
(AVG-84)
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Interim Disbursements
Direct Subsidized Loans:


Refuse to certify or originate loan; or
Certify or originate loan, but not
disburse/deliver loan proceeds
(AVG-84)
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Verification Time Frames
Verification Deadlines


Campus-based and Direct Loans:
 Institutionally-established deadline
Federal Pell Grant:
 Institutionally-established deadline
 Institution must have verification documents
and valid SAR/ISIR by earlier of 120 days after
last day of enrollment or deadline published
annually by ED in Federal Register (expected to
be September 27, 2013)
(AVG-89)
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Verification Beyond 2012-13



Several changes have been made. Specific data elements will
be targeted, rather than requiring the same data to be
verified for all applicants.
Additional data elements beyond the five that have been
historically targeted may be added in future years. These may
include whether families have qualified for means tested benefits
or certain categories of financial independence.
The Secretary will publish a list each year of the data elements
that will be included in the verification process 4-6 months prior to
the start of the application processing cycle.
Source: Final Federal Register October 29, 2010 Regulations: 668.51.61
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Verification Beyond 2012-2013



The results of verification & PJ changes
cannot be submitted on the same day.
The changes impose new requirements for
the recovery of Title IV funds if a school opts
to use interim disbursements.
Conflicting documentation -- regardless of
verification -- must still be resolved.
Source: Final Federal Register October 29, 2010 Regulations: 668.51.61
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Available Resources

Federal Student Aid Handbook

Application and Verification Guide
http://ifap.ed.gov/fsahandbook/attachments/1213AVGCh4.pdf


Institutional Policies and Procedures
IRS Publication 17 found at
http://www.irs.gov/pub/irs-pdf/p17.pdf

Me!
consuela.mitchell@tccd.edu
817-515-6792
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