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Verification 101

Verification 101. The Basics. Presented by: Debbie Forrester Verification Specialist Elmhurst College. Agenda. What is verification and Why do we do it? Exclusions to verification and Items to be verified Tracking groups Acceptable Documentation Corrections Verification Deadlines.

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Verification 101

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  1. Verification 101 The Basics Presented by: Debbie Forrester Verification Specialist Elmhurst College Champions of Financial Aid - 2017 ILASFAA Conference

  2. Agenda What is verification and Why do we do it? Exclusions to verification and Items to be verified Tracking groups Acceptable Documentation Corrections Verification Deadlines Champions of Financial Aid - 2017 ILASFAA Conference

  3. Acronyms Champions of Financial Aid - 2017 ILASFAA Conference FAFSA-Free Application for Federal Student Aid ISIR-Institutional Student Information Record SAR- Student Aid Report CPS-Central Processing System IFAP-Information for Financial Aid Professionals NASFAA-National Association of Financial Aid Administrators NSLDS-National Student Loan Data System EFC-Expected Family Contribution

  4. What? Verification is a process whereby data submitted by a student/parent on the Free Application for Federal Student Aid (FAFSA) is confirmed by reviewing various documents The CPS will flag the ISIR with an asterisk (*) An institution can also select a FAFSA for verification based on its own verification policy Champions of Financial Aid - 2017 ILASFAA Conference

  5. Why? • We are responsible to ensure that taxpayer dollars are being used by those students who are eligible • Federal programs subject to verification: • Pell Grant • FSEOG • Federal Work Study • Perkins Loans • Subsidized loans Champions of Financial Aid - 2017 ILASFAA Conference

  6. Exclusions • We will not complete verification: • For the student if: • is only eligible for unsub loans • the verification was completed at a different institution and we have proof • dies during the award year • For the parent data if: • Parents are mentally incapacitated • Parents whereabouts is unknown • Parents live outside of U.S. and out of normal means of communication Champions of Financial Aid - 2017 ILASFAA Conference

  7. Items to Be Verified • Adjusted Gross Income (Income from work for a non filer) • Income earned from work • U.S. Income taxes paid • Untaxed income and benefits for tax filers • Other untaxed income reported on the FAFSA • Payments to tax deferred pensions and savings plans • Child support received • Living allowance paid to military or clergy • Veterans non educational benefits • Other Untaxed income • Money received or paid on the student’s behalf Champions of Financial Aid - 2017 ILASFAA Conference

  8. More Items to Be Verified Number of household members Number of household members enrolled in college High school completion status Identity and statement of educational purpose If an institution determines that the amounts provided and verified still do not appear to provide sufficient financial support for the number of people in the household, the institution may request additional information to explain how the family was financial supported during the calendar year. Champions of Financial Aid - 2017 ILASFAA Conference

  9. Tracking Groups There are now 4 tracking groups as follows: V1-Standard Verification group V4-Custom Verification group V5-Aggregate Verification group V6-Household Resources group Champions of Financial Aid - 2017 ILASFAA Conference

  10. V1-Standard Verification Group • Items to be verified • Tax filers • AGI • US income taxes paid • Untaxed portions of pensions • IRA deductions and payments • Tax exempt interest income • Education tax credits • Household size • Number in college • SNAP benefits-if indicated on the ISIR • Child support paid, if indicated on the ISIR Champions of Financial Aid - 2017 ILASFAA Conference

  11. V1-Standard Verification Group • Non Tax Filers • Income from work • Household size • Number in college • Snap benefits, if indicated on the ISIR • Child support paid, if indicated on the ISIR Champions of Financial Aid - 2017 ILASFAA Conference

  12. V4-Custom Verification Group • Tax filers and Nontax filers • SNAP benefits, if indicated on the ISIR • Child support paid, if indicated on the ISIR • High School completion • Identity and Statement of Educational Purpose Champions of Financial Aid - 2017 ILASFAA Conference

  13. V5-Aggregate Verification Group • All applicants in this group • High School completion • Identity and Statement of Educational Purpose • All items based on tax filer or nontax filer status for V1 Standard Verification Group Champions of Financial Aid - 2017 ILASFAA Conference

  14. V6-Household Resources Verification Group • Applicants in this group must verify: • Certain other untaxed income from 16-17 FAFSA • Payments to tax deferred pension and retirement savings plans • Child support received • Housing and food allowances for military and clergy • Veteran’s non-education benefits • Other untaxed income • Money received or paid on the applicant’s behalf. • Resources or benefits not appearing on the FAFSA • The Standard Verification group items for tax filer or nontax filer status Champions of Financial Aid - 2017 ILASFAA Conference

  15. Acceptable Documentation • Tax Data: • IRS-Data Retrieval Tool (DRT)-Unaltered “02” Flag • Tax filing status • Tax return type • Number of exemptions claimed • AGI • U.S. Income tax paid • Untaxed portions of IRA distributions • IRA deductions and payments • Untaxed portions of pensions • Tax-exempt interest • Education tax credits Champions of Financial Aid - 2017 ILASFAA Conference

  16. Acceptable Documentation • Tax Return Transcript • Alternative to the DRT • Use the “Get Transcript by Mail” option on the IRS.gov website • Call 1-800-908-9946 • Mail or fax IRS form 4506T • To get a PDF copy online, the IRS has developed a 2 step-multifactor authentication process that requires registration on the IRS website. User must have: • 1. access to a valid email address • 2. a text-enabled mobile phone • 3. specific financial account numbers (such as a credit card or home mortgage or auto loan) Champions of Financial Aid - 2017 ILASFAA Conference

  17. Acceptable Documentation • Alternative Tax Transcripts • IRS Record of Account Transcript • Return Transcript for Taxpayer (RTFTP) • Tax Return DataBase View (TRDBV) All of these tax transcript format contain all the required information for verification • IRS Tax Account Transcript does not include many of the income and tax data required to be verified Champions of Financial Aid - 2017 ILASFAA Conference

  18. Acceptable Documentation • Verification worksheets are used to gather other information • Department of Education has developed suggested texts for worksheets but the school has the discretion to develop their own worksheets • The one exception is the Identity and Statement of Educational Purpose which must have the exact, unaltered wording developed by the Department of Education Champions of Financial Aid - 2017 ILASFAA Conference

  19. Acceptable Documentation • Other documents that can be used are: • W2’s • Wage and Tax Statement from each employer • Amended tax return 1040X • Birth certificates • Marriage license • Passports, Certificate of Naturalization • Signed statements of earning • Only in very rare circumstances a 1040 Champions of Financial Aid - 2017 ILASFAA Conference

  20. Acceptable Documentation • Signatures: • “Wet”-a handwritten, original signature • Photocopied • Faxed • Electronic-that uses a Personal Identification Number (PIN) which identifies and authenticates a particular person-see GEN-01-06 Champions of Financial Aid - 2017 ILASFAA Conference

  21. Conflicting Information Champions of Financial Aid - 2017 ILASFAA Conference If your school has conflicting information concerning a student’s eligibility or you have any reason to believe a student’s application information is incorrect, you must resolve the discrepancies before disbursing FSA funds. AVG pg. 123 Requirement to verify questionable data: “If an institution has reason to believe that an applicant’s FAFSA information is inaccurate, it must verify the accuracy of that information.” HEA (34 CFR 668.54(a)92)

  22. Corrections • Corrections are changes to data elements that were incorrect at the time for FAFSA was filed. • Required corrections: • Positive or negative changes in a single dollar item of $25 or more • Errors to non-dollar items such as household size, or number in college If a correction results in an adjusted EFC, the award must be changed to reflect the new eligibility Champions of Financial Aid - 2017 ILASFAA Conference

  23. Verification Deadlines Institutional deadline is set by the school and there is flexibility in this regard. Pell Grant deadline- all required documents must be received with a valid ISIR before the earlier of 120 days from the student’s last day of attendance or the deadline as published in the Federal Register Campus based/Direct loans: by the deadline as published in the Federal Register Champions of Financial Aid - 2017 ILASFAA Conference

  24. Questions? Champions of Financial Aid - 2017 ILASFAA Conference

  25. Resources NASFAA University Self Study Guide: Verification award year 2016-17 Application and Verification Guide 2017-18 GEN-01-06 Champions of Financial Aid - 2017 ILASFAA Conference

  26. Volunteer Opportunities ILASFAA is a perfect opportunity for members to network with other financial aid administrators and to grow and learn in this career. Consider volunteering with ILASFAA. Champions of Financial Aid - 2017 ILASFAA Conference

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