Verification

Verification TASFAA 2012 ABC Workshop

Joseph RuizAssistant Director Office of Student Financial Assistance

2012-2013 Application & Verification Guide (AVG)http://ifap.ed.gov/fsahandbook/attachments/1213AVG.pdf1Verification TopicsPolicies and proceduresWhose application must be verifiedWhich data elements must be verifiedAcceptable documentationData element correctionsData element updatesVerification time frames2VerificationProcess of verifying accuracy of FAFSA dataRegulations define:Whose application must be verified (AVG-76)Data elements to be verified (AVG-78-80)Documentation used to verify data elements (AVG-81)Regardless of verification selection, must always resolve discrepancies and conflicting information3Verification Policies and ProceduresMust:Be written Address school options where flexibility existsBe made clear to all studentsBe consistently applied (AVG-75)4Verification Policies and ProceduresMust include:Procedures for identifying and processing selected applicationsDeadline for applicant to provide documentation Consequences of failure to meet deadlineProcedures applicant must follow to correct application informationMethod for notifying applicant of verification results and change in EFC and/or award Procedures for referring overpayments to EDProcedures for referring cases of suspected fraud or other criminal misconduct to ED Office of Inspector General (Take it to your Director) (AVG-75)5Whose Application Must Be Verified?Applicants selected by Central Processing System (CPS)Applicants selected by institution

6Programs to Which Verification AppliesFederal Pell GrantCampus-based programsSubsidized Direct Loan program7Institutionally-Selected ApplicationsInstitution can select additional applications not selected by CPS

Selection may be based on such data elements as:

Estimated tax figuresLow family income levelsLarge household size or number in collegeCompletion of certain FAFSA data elementsOther institutional criteria8Required Verification DataHousehold sizeNumber enrolled in collegeAdjusted gross income (AGI)U.S. income tax paid, andChild Support PaidSNAP (Supplemental Nutrition Program)(AVG-78)

9Required Verification Data Elements10Tax-exempt interest incomeDeductible IRA or Keogh paymentsUntaxed IRA distributions and pension or annuity payments

Education Tax Credits

(AVG-19)

Other untaxed income and benefits on the tax returnAcceptable Sources of DocumentationIRS tax transcript listing tax return information Signed Verification Worksheet-Please notice the age of the independent students that are submitting a verification worksheet. There are 13 responses that will can make a student independent under the age of 24.Tax Transcripts for-Parents and dependent students-Independent students-compare names and check tax year on all transriptswww.irs.gov11Documentation ContinuedSupporting c-flag documentation-Please only accept a completed file-Veteran Status DD214Selective service-Males must register and females need a birth certificateCitizenship-Pass Port Certificate of naturalization Permanent Resident Card Birth Certificate Certificate of Citizenship 12Child Support DocumentationObtain verification worksheet or written statement certifying amount of child support received for all childrenStatement must be signed by applicant and at least one parent (if dependent)Statement must be signed by applicant if independentIf support paid through government agency, statement from that agency is acceptable(AVG -82)13Child Support DocumentationRequest additional documentation if information provided appears inaccurateCopy of separation agreement or divorce decreeSigned statement from parent providing supportCopies of canceled child support checks or money order receipts(AVG-82-83)14Number in Household & in College Verification worksheet listing each household members:NameAgeRelationship to applicantPostsecondary school (if any) attending at least half-time in program leading to recognized educational credential (AVG -80-81)15Verification UpdatesChanges to data elements that were correct at time of application but have since changedApplicable only to 3 items:Dependency statusNumber in householdNumber of household members enrolled in collegeMarital Status Discrepancy Case by Case Basis(AVG 84-85)16Verification UpdatesNumber in Household and Number in CollegeIf selected, data must be accurate as of verificationIf not selected, student can select their file to be selected If not selected, not required to monitor data element change(AVG-85)17Verification 2012-2013 and BeyondSchools must verify all cases selected. The 30% cap has been eliminated.Tolerance levels for dollar items has been eliminated. Instead, all changes must be submitted to the CPS for reprocessing if the change is $25 or more. All non-dollar item changes (e.g. household size/number in college) must also be submitted.The regulations now clarify that verification must be completed on selected applications (if selected by the CPS or the school) before a school may exercise Professional Judgment. The results of verification & PJ changes cannot be submitted on the same day.Conflicting documentation -- regardless of verification -- must still be resolved.18Available ResourcesFederal Student Aid HandbookApplication and Verification Guide http://ifap.ed.gov/fsahandbook/1112FSAHandbookAVG.html Institutional Policies and ProceduresIRS Publication 17 found at www.irs.gov 19