Student Financial Aid Programs INTEGRITY, ACCOUNTABILITY & RESPONSIBILITY

Student Financial Aid ProgramsStudent Financial Aid Programs

INTEGRITY, INTEGRITY, ACCOUNTABILITY & ACCOUNTABILITY &

RESPONSIBILITYRESPONSIBILITY

Presented ByPresented ByCalifornia Association of Student Financial California Association of Student Financial

Aid Administrators Aid Administrators CASFAACASFAA

California Community Colleges Student California Community Colleges Student Financial Aid Administrators Association Financial Aid Administrators Association

CCCSFAAACCCSFAAA

California Lenders for Education California Lenders for Education CLFECLFE

INTEGRITY, ACCOUNTABILITY INTEGRITY, ACCOUNTABILITY & & RESPONSIBILITYRESPONSIBILITY

Federal funds Federal funds administered for administered for undergraduate students undergraduate students in the State of California in the State of California $5.3 billion $5.3 billion annuallyannually

INTEGRITY, ACCOUNTABILITY INTEGRITY, ACCOUNTABILITY & RESPONSIBILITY& RESPONSIBILITY

CSAC funds administered CSAC funds administered for students in the State for students in the State of California approaches of California approaches $1 billion$1 billion annually annually


In addition, California In addition, California institutions also institutions also administer institutional administer institutional and private scholarships and private scholarships (merit only) (merit only) $6.4 billion$6.4 billion


Verification OverviewVerification OverviewVerification of student & Verification of student &

parent information required on parent information required on

at least 30% of all FAFSAs filedat least 30% of all FAFSAs filed


In addition, if conflicting In addition, if conflicting information exists, information exists,

institutions routinely select institutions routinely select additional applications for additional applications for

verificationverification


Components of Components of Required VerificationRequired Verification


CSAC has historically CSAC has historically “piggybacked” on federal “piggybacked” on federal verification requirementsverification requirements


IRS Federal Tax ReturnIRS Federal Tax ReturnStudentStudentStudent’s spouse, if applicable Student’s spouse, if applicable Parent(s)Parent(s)


Department of Department of Homeland SecurityHomeland Security

CitizenshipCitizenship


Social Security Social Security AdministrationAdministration

CitizenshipCitizenshipChange of NameChange of Name


Independent Living Independent Living ProgramProgram

Foster Youth CertificationFoster Youth CertificationDependency StatusDependency Status


Department of Social Department of Social ServicesServices

Untaxed Income & BenefitsUntaxed Income & Benefits


Employment Employment Development Development DepartmentDepartment

Unemployment BenefitsUnemployment Benefits


Veterans’ Veterans’ AdministrationAdministration

DD 214 (Discharge)DD 214 (Discharge)Verify Veterans’, and eligible Verify Veterans’, and eligible

dependents, Benefits, Eligibility dependents, Benefits, Eligibility & Amount& Amount


Selective Service Selective Service AdministrationAdministration

Verify Selective Service Verify Selective Service RegistrationRegistration


County Recorder’s County Recorder’s OfficeOffice

Birth CertificateBirth CertificateMarriage CertificateMarriage CertificateDeath CertificateDeath Certificate


Program/Fund Program/Fund AdministratorAdministrator

Verification of AssetsVerification of Assets


AccountantAccountantVerification of Income & AssetsVerification of Income & AssetsCopy of 1040 Federal Tax Copy of 1040 Federal Tax

Return, including all schedules Return, including all schedules and W-2’sand W-2’s


NSLDSNSLDS(National Student Loan Data (National Student Loan Data

System)System)No Prior Loan DefaultNo Prior Loan DefaultNo Grant Repayment OwedNo Grant Repayment Owed


AccountabilityAccountabilityAnnual Audit of SFA ProgramsAnnual Audit of SFA Programs

Required by Federal RegulationRequired by Federal RegulationSamples Title IV RecipientsSamples Title IV RecipientsTitle IV ProgramsTitle IV ProgramsSubmitted to US Dept. of Submitted to US Dept. of

EducationEducation


Annual AuditAnnual AuditBusiness Practices & Business Practices &

ProceduresProceduresSegregation of DutiesSegregation of DutiesCash ManagementCash Management


Federal AuditsFederal AuditsAnnual audit may trigger a Annual audit may trigger a

Federal Program ReviewFederal Program ReviewWith or without notice by the With or without notice by the

US Dept of EducationUS Dept of Education


State AuditsState AuditsCSAC AuditsCSAC AuditsEdFund AuditsEdFund AuditsOther Guarantee Agency Other Guarantee Agency

AuditsAudits


More AuditsMore Audits Veterans’ Administration AuditsVeterans’ Administration Audits Office of Inspector General Office of Inspector General

AuditsAudits Office of Civil RightsOffice of Civil Rights


And More AuditsAnd More AuditsPrivate Scholarship Foundation Private Scholarship Foundation

AuditsAuditsWICHE & Other State Agency WICHE & Other State Agency

AuditsAuditsNCAA AuditsNCAA Audits

Audit, Audit, Audit…Audit, Audit, Audit…

Institution/ Financial Aid Office


We constantly, and We constantly, and consistently, prove consistently, prove that we are “good that we are “good stewards of public stewards of public

funds”funds”


After Integrity and Accountability After Integrity and Accountability ComesComes

ResponsibilityResponsibility


Responsibility to…Responsibility to…First to serve our studentsFirst to serve our studentsSecond to serve our institutionsSecond to serve our institutionsThird to serve the taxpayersThird to serve the taxpayers


We have already proven We have already proven our responsibility to the our responsibility to the

federal and state federal and state governments through governments through

integrity & accountability integrity & accountability of our programsof our programs


Responsibility to…Responsibility to…Assist students with FAFSA Assist students with FAFSA

completioncompletionCounsel to help students with Counsel to help students with

emergenciesemergenciesCounsel to help students with Counsel to help students with

dependency status issuesdependency status issues


Responsibility to…Responsibility to…Counsel students with loan problemsCounsel students with loan problemsAdvise students with debt problemsAdvise students with debt problemsEncourage students to file for Encourage students to file for

scholarshipsscholarshipsAssist students who had “base” year Assist students who had “base” year

income, but quit work to attend income, but quit work to attend collegecollege

VERIFICATIONVERIFICATION Federal Student Eligibility Federal Student Eligibility & State of California & State of California CONFIRMATIONCONFIRMATION

PriorPrior to Cal Grant Entitlement Program to Cal Grant Entitlement Program (2001)(2001)

AfterAfter Cal Cal Grant Grant

Entitlement Entitlement Program Program (2001+)(2001+)

Adjusted Gross Income – Adjusted Gross Income – CA Income CeilingCA Income Ceiling (1040) (1040) SameSameAssets (1040 & other documents in file) Assets (1040 & other documents in file) CA Asset CA Asset CeilingCeiling SameSameHousehold Size – (1040, Federal Verification Form)Household Size – (1040, Federal Verification Form) SameSameNumber in College – (Federal Verification Form)Number in College – (Federal Verification Form) SameSameUntaxed Income (1040, W-2, Federal Verification Untaxed Income (1040, W-2, Federal Verification Form)Form) SameSame

Eligible Non-Citizen (Federal ISIR)Eligible Non-Citizen (Federal ISIR) SameSameUnemployment Benefits (1040, EDD Notice, 1040, Unemployment Benefits (1040, EDD Notice, 1040, Federal Verification Form)Federal Verification Form) SameSameSocial Security Benefits (1040, Federal Verification Social Security Benefits (1040, Federal Verification Form)Form) SameSame

State of California State of California CONFIRMATIONCONFIRMATION Requirements Requirements


AfterAfter Cal Grant Cal Grant Entitlement Entitlement

Program Program (2001+)(2001+)

Conflicting InformationConflicting Information - - The following are examples of common The following are examples of common conflicting information related to California Cal Grant conflicting information related to California Cal Grant Requirements (State specific):Requirements (State specific):

If the student is receiving a If the student is receiving a 55thth year award year award, , the institution must ensure that the student the institution must ensure that the student is in an eligible program of studyis in an eligible program of study

SameSame

Student does Student does notnot have a have a bachelor’s degreebachelor’s degree SameSame

Continued on next slide …Continued on next slide …

State of California State of California CONFIRMATIONCONFIRMATION Requirements Requirements

California Residency:California Residency:General:General: Based on information Based on information

existing in the student’s financial existing in the student’s financial aid file:aid file:

If parent and/or student address If parent and/or student address out-of-stateout-of-state

Non-California state income tax Non-California state income tax return in student filereturn in student file

If a student is paying out-of-state If a student is paying out-of-state tuition (at public institutions)tuition (at public institutions)

SameSame


AfterAfter Cal Grant Cal Grant Entitlement Entitlement

Program Program (2001+)(2001+)

Disbursement/ReconciliationDisbursement/ReconciliationPriorPrior to Cal Grant Entitlement to Cal Grant Entitlement

Program (2001)Program (2001)AfterAfter Cal Grant Cal Grant

Entitlement Program Entitlement Program (2001+)(2001+)

CSAC sent a roster CSAC sent a roster of students’ of students’ names, Cal names, Cal Grant awards Grant awards andand Individual Individual Checks,Checks, payable to payable to students, to students, to institutionsinstitutions

Change: ~1994Change: ~1994State of CaliforniaState of California

Master Check Master Check mailed to mailed to InstitutionsInstitutions (Payable to the (Payable to the Institution & the Institution & the Institution Institution deposited deposited Check) Check)

Roster identified Roster identified students eligible students eligible for fundsfor funds

Change: ~2002Change: ~2002State of CaliforniaState of California

Electronic Deposit of Electronic Deposit of FundsFunds for those students’ for those students’ Cal Grant awards directly Cal Grant awards directly into an Institution’s bank into an Institution’s bank accountaccount

SameSame

Disbursement/ReconciliationDisbursement/Reconciliation

The institutions confirm that students are The institutions confirm that students are enrolled in appropriate units (enrollment enrolled in appropriate units (enrollment status)status)

SameSame

The institutions The institutions release the release the CSAC CSAC checkcheck to the student to the student

(1994 continued) (1994 continued) The institution The institution disburses funds to disburses funds to the student the student either either by directly by directly crediting the crediting the student’s account student’s account oror by by writing an writing an institutional checkinstitutional check and releasing it to and releasing it to the studentthe student

SameSame

PriorPrior to Cal Grant Entitlement to Cal Grant Entitlement Program (2001)Program (2001)

AfterAfter Cal Grant Cal Grant Entitlement Entitlement Program (2001+)Program (2001+)

Disbursement/ReconciliationDisbursement/Reconciliation

Institutions report payments to Institutions report payments to students using the paper roster students using the paper roster provided by CSAC provided by CSAC

CSAC inputs the data into (CSAC’s) CSAC inputs the data into (CSAC’s) data basedata base

Change: ~2002Change: ~2002Institutions report payments Institutions report payments

to CSAC using CSAC’s to CSAC using CSAC’s WebGrant systemWebGrant system

Institutions assigned Institutions assigned responsibility for the responsibility for the data entry of student data entry of student enrollment status and enrollment status and amount paid into CSAC amount paid into CSAC ‘s data base‘s data base

Institutions and CSAC reconcile Institutions and CSAC reconcile payments to students with payments to students with records of awardsrecords of awards

SameSame

PriorPrior to Cal Grant Entitlement to Cal Grant Entitlement Program (2001)Program (2001)

AfterAfter Cal Grant Cal Grant Entitlement Program Entitlement Program (2001+)(2001+)

Agencies The Student Must Agencies The Student Must Contact To Obtain DocumentationContact To Obtain Documentation AgencyAgency PurposePurpose

Department of Homeland SecurityDepartment of Homeland Security CitizenshipCitizenship

Social Security AdministrationSocial Security Administration Citizenship, Change of NameCitizenship, Change of Name

High SchoolHigh School GPA, Academic GPA, Academic Competitiveness GrantCompetitiveness Grant

Independent Living ProgramIndependent Living Program Foster Youth Certification, Foster Youth Certification, Dependency StatusDependency Status

Welfare DepartmentWelfare Department Untaxed Income ConfirmationUntaxed Income Confirmation

Employment Development DeptEmployment Development Dept Unemployment BenefitsUnemployment Benefits

Internal Revenue ServiceInternal Revenue Service Tax ReturnTax Return

Agencies The Student Must Agencies The Student Must Contact To Obtain DocumentationContact To Obtain Documentation

AgencyAgency PurposePurpose

Veteran’s AdministrationVeteran’s Administration DD214 (Discharge)DD214 (Discharge)

Selective Service AdministrationSelective Service Administration Selective Service Selective Service RegistrationRegistration

County Recorder OfficeCounty Recorder Office Birth, Death or Marriage Birth, Death or Marriage CertificateCertificate

Program/Fund AdministratorProgram/Fund Administrator Verification of AssetsVerification of Assets

AccountantAccountant Verification of Income & Verification of Income & Assets, Copy of Assets, Copy of 10401040

Prior CollegesPrior Colleges Academic TranscriptsAcademic Transcripts

Impact on StudentsImpact on Students

Student Verification Student Verification Process VisualProcess Visual

Student Verification Process Student Verification Process AFTERAFTER Completing the FAFSA Completing the FAFSA

Student IRS

Eligible Non

Citizen

INS/DHS

SSA

Untaxed IncomeDept. of

Soc. Services

Social

Sec

urity

Numbe

r, Nam

e

Chang

e

Mar or S

ept 2 G

PA

submiss

ion

High

School

Federal Tax Return

Veteran's Benefits

Une

mpl

oym

ent

Ben

efits

.Selective Service VA

SSAEDD

The EndThe End

Documents

Student Financial Aid Programs INTEGRITY, ACCOUNTABILITY & RESPONSIBILITY