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Verification 101

Shannon SimmonsClayton State University

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• Process by which certain required data reported on the FAFSA is reviewed for accuracy and completeness.

What is Verification?

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• Deadlines for student to provide documentation and consequences of failure to meet deadlines

• Method by which students are notified of award changes resulting from verification

• Procedures for correcting FAFSA data for students

• Procedures for referring overpayments to ED

Required Written Policies and Procedures

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• School must provide a written statement providing a clear explanation of the documents required for student to submit for verification.

• Student’s responsibilities with regard to the verification process. This includes correction procedures, deadlines for completing any actions required & consequences of missing deadlines.

• Notification methods that the school will use to notify students of award changes as a result of verification and the time frame for notification.

Notification to Selected Students

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• CPS selection1. Edit checks which identify inconsistencies and potential errors2. Random selection

• School selection– Criteria set by school

How Are Applicants Selected?

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• General requirement is to verify all those selected by CPS

BUT

• May stop at 30% of your applicant pool, if CPS selects more than 30%

How Many To Verify?

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• Student is incarcerated

• Student is recent immigrant who arrived in US during 2010 or 2011

• Spouse or Parents unavailableo Deceased or Mentally or Physically incapacityo Residing in country other than U.S. and cannot be contacted by

normal means o Can’t be located because his or her address is unknown and

student can’t obtain it

• Death of the Student• Applicant verified by another school• Pacific Island resident• Student not an aid recipient

Verification Exclusions

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• Household size• Number enrolled in college• Adjusted Gross Income (AGI)• U.S. Income tax paid• Certain untaxed income and benefits

o Child Supporto IRA/Keogh Deductionso Interest on tax-free bonds

Required Verification Items

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• Verification Worksheet– Department of Education forms or School created forms

• Appropriate Tax Forms• Other documentation in lieu of Worksheet or Tax

Returns– Signed statement for household size – Signed statement or institutional certification for number

enrolled in college– IRS tax transcript, other signed IRS forms with tax data, Form

W-2, Form 4868 or a signed statement for AGI & taxes paid– Signed statement or official agency documentation for

untaxed income and benefits

Documents Needed for Verification

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• Compare the verification documents with the original• FAFSA information

May create own checklist/spreadsheet May use verification tool on FAA Access

• Determine that information is correct or corrections must be made• May use tolerance option if all errors are dollar

amount errors

How to Verify?

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• Tolerance is $400. If total difference between incorrect and correct values for certain items is more than $400, then correction is needed.

• If difference between the incorrect total and correct total is $400 or less, then errors are within tolerance.– Awarding may be done without submitting a

correction or recalculating EFC

• Optional- Can always have student submit corrections for processing.

Verification Tolerance

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• Used when reporting Pell, ACG, SMART and Direct Loan payments to COD

o V - Verified o W - Paid without Documentationo S - Selected, but not verifiedo Blank - ISIR not selected by CPS or school

Verification Status Codes

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• Within 120 calendar days after student’s last date of enrollment OR date specified in Federal Register (September 26, 2011)

– Student must provide all verification documentation– ISIR must be corrected, if necessary

Verification Deadline

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• Conflicting information must be resolved, regardless of verification status

• Separate process from verification– Involves any information of which the

school has knowledge– Must resolve before disbursing any aid

Remember

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• Definition – Professional Judgment is the Authority provided under the Higher Education Act for aid administrators to exercise discretion in specific areas of student aid administration

Professional Judgment

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• We (FA Administrators) have flexibility in dealing with unique circumstances

• We are allowed opportunities to deal with special circumstances which cannot be anticipated by legislation

• Through PJ, we are able to analyze students’ situation on a case-by-case basis that is not possible through the methodology.

Importance of PJ

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• Parents refusing to contribute to the student’s education;

• Parents unwilling to provide information on the application or for verification;

• Parents not claiming the student as a dependent for income tax purposes; and/or

• Student demonstrating total self-sufficiency.• No Parental Information

Circumstances that are not unusual, does notmerit PJ

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Questions?