Verification embracing you with knowledge of comfort

Report
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:

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
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
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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

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ISIR contains asterisk (*) next to EFC
Verification flag set to:

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
“Y” if selected during initial processing
“Asterisk” if selected on a subsequent transaction
Comment in comments section
SARs for CPSSelected Applications

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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

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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:

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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
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Adjusted Gross Income (AGI)
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U.S. income tax paid
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Untaxed Income & Benefits
Required Verification Fields
Certain untaxed income &
benefits
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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
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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

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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
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Non-Acceptable Tax Documents
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Federal Return RECAP
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Form 8453
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E-file Authorization Form
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Short TAX Version Summary (s)
Tax Filing Extensions
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Collect w-2 and one of the
following:
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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
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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:

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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
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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
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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
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Verification worksheet should include the
following:
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Name
Age
Relationship to applicant
Postsecondary school stated (if applicable)
Verification Corrections

Changes to data elements that were incorrect at
time of application
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Data correct as reported and valid ISIR/SAR:

Pay Federal Pell Grant, FSEOG, & Federal Perkins Loan
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Employ students under Federal Work-study Program
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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:
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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
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Cannot be updated if it
changes as result of change
in marital status
Verification Time Frames

Institutions are responsible to establish deadline
dates
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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:

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Federal Pell Grant is forfeited
Any previously disbursed/paid PELL must be returned
Verification Status Codes

V—Verified
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W—Without Documentation
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S—Selected/Not Verified
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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
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Must:
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Be Written
Address school options where flexibility exists
Be made clear to all students
Be consistently applied
Verification Policy &
Procedures (cont.)
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Must include:
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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….
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Lifetime learning process, not done overnight
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It takes a few months or years to master

To audit/review a students data to check for accuracy
You should be able to…
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Identify acceptable documents
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Tax Returns
Signature Requirements
Untaxed Income & Benefits
Tolerance Level
Traditional vs. Non-traditional
Household
Database C-code Match (s )
Citizenship
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Students must be a
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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
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How can one register?
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Who is required?
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FAFSA or on-line
Men of ages 18 through 25 are
required to register.
Contact Information:
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www.sss.gov
1-847-688-6888
Veteran’s Match
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Status Confirmed
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Not a qualifying Veteran
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No data in VA database

On Active Duty
Drug Conviction/Prisoner
Match

Student is responsible for
contacting Department of
Education
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Contact #: 1-800-433-3243
Aggregate Loan Limit or
NSLDS Match
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Remember to monitor the loan limits
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Undergraduate
Graduate
$23,000 (sub or unsub)
$65,500 (sub)
$73,000 (unsub)
Question/Comments
Works Cited
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www.ifap.ed.gov
www.office.microsoft.com
www.nasfaa.org

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