cathleen wright director of financial aid texas lutheran university
TRANSCRIPT
Cathleen WrightDirector of Financial Aid
Texas Lutheran University
Must have written policies and procedures on the following:Deadlines for document submission and
consequences of failure to meet those deadlines
Method of notifying students of award changes due to verification
Required correction procedures for studentsStandard procedures for referring
overpayment cases to the Department.
Must give each applicant selected for verification a written statement explaining the following:Documents required for verificationStudent responsibilities
Correction procedures Submission deadlines Consequences of missing deadlines
Notification methods How you will notify of award changes Time frame of notification
Those selected by CPS Those selected by School
30% Verification Option – verify all CPS selected applicants up to 30% of the schools total federal aid applicants.Applications the school selects or that have
conflicting data do not count toward 30% Incarceration Recent Immigrant Spouse unavailable Parents unavailable
Death of the student Applicant verified by another school Pacific Island resident Not an aid recipient
Not eligible because of SAPWithdrew before receiving aid
Household Size Number Enrolled in College Adjusted Gross Income U.S. Income Tax Paid Certain Untaxed Income and Benefits
Note: Schools may choose additional items.
Verification worksheet Don’t have to verify if:
Same as reported and verified in previous year
ISIR/SAR received within 90 days after application signed
For dependent student, household size for married parent is 3 or is 2 if parent is single, divorced, separated or widowed.
Household size for married independent student is two or is one if student is single, divorced, separated or widowed.
Verification worksheet Don’t have to verify if:
Only one in college ISIR/SAR received within 90 days after
application signedThe family members the student lists are
enrolled at your school and you have confirmed their enrollment.
Acceptable documentation:Signed federal tax returnTax transcriptForm W-2Form 4868Signed statement
Can accept copies, fax or digital images Must be signed by at least one tax filer
or have tax preparer information
Must check tax returns for anyone reported on the FAFSA.
Type of form reported on FAFSA should match form filed.
AGI on FAFSA should match AGI on tax return unless:You adjust for divorce, separation or
professional judgment.
Untaxed income – any income excluded from federal income tax
Must verify:Child support IRA/Keoug deductions Interest on tax-free bondsAny other untaxed income reported on the
federal tax return. Not required to verify any untaxed
income or benefit received from a federal, state or local government agency that is based on need.
Students selected for verification must complete it.
Have authority to withhold disbursements until verification completed. (recommended)
Interim disbursementsPell Grant, Perkins and SEOG – can make
one disbursement for the student’s first payment period.
FWS – can employ for up to 60 daysStafford – can originate but not disburse
$400 tolerance for dollar itemsAGI + untaxed income – tax paid
No tolerance for non-dollar items
Correction increases eligibility If selected for verification - can disburse aid
on original EFC until corrected ISIR received If not selected for verification – do not
disburse aid until corrected ISIR received Correction decreases eligibility
If EFC decreases – must wait for corrected ISIR to be received to disburse aid.
Cannot update income or asset information if accurate at time FAFSA was filed.
Must update household size, number in college and dependency status in certain circumstancesDependency status – must update any time
during award year unless changed because of a marital status change. Must be updated regardless of whether student
selected for verification
Household size and number in collegeCannot be updated unless student selected
for verification If selected for verification – must be
updated to be correct at time of verification unless they changed due to change in marital status, in which case updating is not permitted.
Obligated to know: If student or parent was required to file a
tax returnThe correct filing status for the student or
parentThat an individual cannot be claimed by
more than one person. i.e. student cannot claim himself and also be claimed on parent tax return
Must resolve conflicting informationKeep in mind that if have W-2s, must verify
income from work on FAFSA or risk having unresolved conflicting information in the file
If income from work on tax return doesn’t match income from work on ISIR – must resolve
If have interest income on tax return but no assets – possible conflict – must resolve
If both parents filed Head of Household – must question whether that is correct filing status
NPRM published in June 18, 2010 Federal Register
Selection for verification:Removes 30% cap - must verify all selected
appsEliminates certain exclusions:
Pacific Island residents Incarcerated students Recent immigrants
Modifies exclusions for: Parent’s or spouse’s contact information
unknown Parent or spouse is mentally incapacitated
Verification items Variable selection that corresponds to the
most error-prone data elements for a particular student
Determined by ED and published in Federal Register each year
Eliminates the minimum five required data elements
Can accept tax data electronically loaded by IRS to FAFSA in lieu of tax returns
Require schools to verify ISIR before processing Special Condition/Professional Judgment changes
No tolerance – must make all corrections Must update student’s dependency
status Whether selected for verification or not Includes changes in marital status
Allows schools to make interim aid disbursements as long as: Verification is completed Corrections have been submitted Changes are not expected to affect eligibility
Questions?