Ring Around the Rosie Verification

1. Ring Around the Rosie Verification Playing the Financial Aid Game

2. Verification - Definition • Process of verifying accuracy of Free Application for Federal Student Aid (FAFSA) data • Regulations define: • Whose application must be verified (WHO) • FAFSA information to be verified (WHAT) • Documentation used to verify data elements (HOW) • Regardless of verification selection, you must always resolve discrepancies and conflicting information

3. Students can be selected for verification in two ways: By the Central Processing System (CPS) during the processing of application data, either randomly or based on predetermined criteria edits. (notated on the ISIR with an asterisk (*) next to the Expected Family Contribution (EFC), and tracking flag notates which selection group) By the institution, based on its own verification policies, if it chooses to broaden its verification efforts beyond the CPS edits Selection Process (WHO)

4. Verification Tracking Groups • Standard (V1) • Child Support Paid (V3) • Custom (V4) • Aggregate (V5) • Household Resources (V6)

5. Verification Tracking Flag V1 – Standard Verification Group Requirements • Tax Filers: • Adjusted Gross Income • U.S. Income Tax Paid • Untaxed Portions of Individual Retirement Account (IRA) Distributions • Untaxed Portions of Pensions • IRA Deductions and Payments • Tax Exempt Interest Income • Education Credits • Number of Household Members • Number in College • Supplemental Nutrition Assistance Program (SNAP), if included on the ISIR • Child Support Paid, if included on the ISIR • Nontax Filers • Income Earned from Work • Number of Household Members • Number in College • Supplemental Nutrition Assistance Program (SNAP), if included on the ISIR • Child Support Paid, if included on the ISIR

6. Verification Tracking Flag V3 – Child Support Paid Verification Group Requirements • Child support paid by the student (or spouse), the student’s parent, or both • Verification Tracking Flag V4 – Custom Verification Group Requirements • High School Completion Status • Identity/Statement of Educational Purpose • Supplemental Nutrition Assistance Program (SNAP), if included on the ISIR • Child Support Paid, if included on the ISIR • Verification Tracking Flag V5 – Aggregate Verification Group Requirements • Combination of V1 and V4 requirements

7. Verification Tracking Flag V6 – Household Resources Verification Group Requirements • Information from V1 • Other Untaxed Income on the 14-15 FAFSA for both Tax Filers and Nontax Filers • Payment to tax-deferred pensions and savings • Child support received • Housing, food, and other living allowances paid to members of the military, clergy and others • Veterans non-educational benefits • Other untaxed income • Money received or paid on the applicant’s behalf

8. Information to Verify (WHAT)

9. Documentation (HOW) • IRS Data Retrieval • IRS Transcripts • Signed copy of foreign tax return • Signed copy of income tax return – ONLY to be used in limited cases • Amended tax returns • Verification Worksheets • These are developed by each school • The Department gave suggested text to use, but will not require the use of the suggested text except for Identity/ Statement of Educational Purpose • W2s

11. Reviewing W2 Forms • In addition to wages earned, the W2 form may reveal sources of untaxed income, such as payments to tax-deferred pension and savings plan amounts reported on in boxes 12a through 12d, coded D, E, F, G, H and S. • Schools are not required to review income listed in box 14, however if you are aware that a box 14 item should be reported (i.e. clergy parsonage allowances) then you would count that amount as untaxed income.

12. Data Element Corrections • Verification corrections • Corrections are changes to data elements that were incorrect at the time of application • Incorrect data • Can change student’s eligibility for aid • Any change to a single dollar item of $25 or more must be reprocessed by CPS • Data correct as reported

13. Verification Updates • Updates are changes to data elements that were correct at the time of application but have since changed • Updates are allowable for the following: • Dependency status • Number in household • Number of household members enrolled in college

14. Verification Status Codes • For all Federal Pell Grant recipients, the verification status code must be reported on the student’s origination record.

15. Interim Disbursements • Except for DL program, the institution has the option to make interim disbursements prior to the completion of verification IF no conflicting information exists and no reason to believe the information is inaccurate. • Institutions can make after verification but before valid ISIR if no change to T4 funds. • Options vary by T4 program

16. Verification Time Frames • Verification and Award Cycle • Left to discretion of school • Verification Deadlines • All required documents must be submitted by the institutionally-established deadline • Institution must have all requested documents before the earlier of 120 days from last attendance or annual deadline in Federal Register

17. Verification Policies and Procedures • MUST • Be written • Address school options where flexibility exists • Be made clear to all students • Be consistently applied

18. 15-16 Verification - GEN-14-11 • One change to the acceptable documentation from the 14-15 requirements as published in last year’s Federal Register notice on June 13, 2013 and summarized in GEN-13-16. Provided guidance on State-approved tests that would meet the requirements of being equivalent to a high school diploma.

19. How FAAs feel about verification

20. Contact information Jennifer Williams Southern Arkansas University Tech jwilliam@sautech.edu 870-574-4499

21. Questions???