1

Verification

2012-2013 Application & Verification Guide (AVG)

http://ifap.ed.gov/fsahandbook/attachments/1213AVG.pdf

ABC Workshop

2

Verification Process of verifying accuracy of FAFSA data

Regulations 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 information

3

Verification Policies & Procedures

Must:

Be written

Address school options where flexibility exists

Be made clear to all students

Be consistently applied

(AVG-75)

4

Verification Policies & Procedures. . . . continuedMust include:

Procedures for identifying and processing selected applications

Deadline for applicant to provide documentation

Consequences of failure to meet deadline Procedures applicant must follow to correct

application information Method for notifying applicant of verification results

and change in EFC and/or award Procedures for referring overpayments to ED Procedures for referring cases of suspected fraud or

other criminal misconduct to ED Office of Inspector General (Take it to your Director)

(AVG-75)

5

Whose Application Must Be Verified?

Applicants selected by Central Processing System (CPS)

Applicants selected by institution

6

Programs to Which Verification Applies

Federal Pell Grant Campus-based programs Subsidized Direct Loan program

7

Institutionally-Selected Applications

Institution can select additional applications not selected by CPS

Selection may be based on such data elements as:

Estimated tax figures Low family income levels Large household size or number in college Completion of certain FAFSA data elements Other institutional criteria

8

Required Verification Data

Household size

Number enrolled in college

Adjusted gross income (AGI)

U.S. income tax paid, and

Child Support Paid

SNAP (Supplemental Nutrition Program)

(AVG-78)

9

Verification Tracking

Flag

Verification Tracking Group

Verification Description

V1 Standard Verification

Group is standard verification

V2 SNAP Verification Group consist of only verifying SNAP

V3 Child Support Paid Verification

Group consist of only verifying Child Support paid

V4 Custom Verification Group

Group consist of : SNAP, Child Support Paid, High School Completion Status, and ID Proof/ Statement of Educational Purpose.

V5 Aggregate Verification Group

Group consist of V1 and V4 items: standard verification, SNAP, Child Support Paid, High School Completion Status, and ID Proof/ Statement of Educational Purpose.

Verification Groups

10

Required Verification Data Elements – V1

Resolution of any conflicting information, including unverifiable untaxed income, student must include comment in comment section box. Please make sure student initials and dates comment(s).

Required Verification Data Elements – V2 Ask student to print the form and sign the SNAP statement.

Both parent and student must sign if dependent. Verify if asset information is on FAFSA. If asset information is

blank on the FAFSA and no other means test questions have been answered with “yes” then have student fill out asset form

Reason for asking for asset information is, we are likely to get a “Reject” due to needing ASSET info. Therefore, if student answers “NO” we need ASSET info.

11

Required Verification Data Elements – V3 Description: Print, complete and sign Child Support

Benefit Certification Form. This form is available online at

Ask student to print the form and sign statement.

Required Verification Data Elements – V4

CSPAID - Print, complete and sign Child Support Benefit Certification Form

HS/GED - - Request upon graduation a final official high school transcript or an official copy of your GED test scores be sent to the EPCC Admissions Office. Please notify the Financial Aid Office once the document has been received by the Admissions Office.

IDPSEP - Print, complete and sign Identity and Statement of Educational Purpose and provide, in person a valid government issued photo identification.

SNAP - Print, complete and sign SNAP Benefit Certification Form.

12

Required Verification Data Elements – V4 Continued

“Out of Town” students can mail in Identity and Statement of Educational Purposes and copy of a valid Government issued photo identification that was used while signing the Identity and Statement of Educational Purposes form in front of notary public.

If unable to appear (out of town students who are registered for only online courses) student will need to provide a copy of US Gov’t issued Photo, and original notarized Statement of Educational Purpose. The student will need to mail in certification.

Acceptable Identification for ID Proof for student are a valid US Gov’t issued Photo ID (DL, temp DL, passport, military ID, etc.). High school ID’s will not be accepted.

Statement of Educational Purpose and ID Proof must be signed at FA Office in front of full-time employee.

13

Required Verification Data Elements – V5

All verification groups are included.

IVF, SNAP Benefit Certification, Child Support Paid Certification, Proof of High School Completion Status, ID Proof and Statement of Educational Purpose

Remember, ID Proof and Statement of Educational Purpose are to be signed at FA Office in front of full-time employee from FA.

Also remember, if student unable to appear (out of town registered for only online courses,) - student will need to provide copy of US Gov’t issued Photo, and original notarized Statement of Educational Purpose. The student will need to mail in this certification.

14

Acceptable Sources of Documentation IRS 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.

oTax Transcripts for-Parents and dependent students-Independent students-compare names and check tax year on all transcripts. www.irs.gov

15

Documentation Continued

Supporting c-flag documentation

-Please only accept a completed file-Veteran Status DD214o Selective service-Males must register and females need a birth certificateo Citizenship-Pass Port Certificate of naturalization Permanent Resident Card Birth Certificate Certificate of Citizenship

16

Child Support Documentation

Obtain verification worksheet or written statement certifying amount of child support received for all children Statement must be signed by applicant and at least one parent (if dependent) Statement must be signed by applicant if independent If support paid through government agency, statement from that agency is acceptable

(AVG -82)

17

Child Support Documentation

Request additional documentation if information provided appears inaccurateCopy of separation agreement or divorce decree Signed statement from parent providing support Copies of canceled child support checks or money order receipts

(AVG-82-83)

18

Number in Household & in College Verification worksheet listing each household

member’s: Name Age Relationship to applicant Postsecondary school (if any) attending at

least half-time in program leading to recognized educational credential

(AVG -80-81) If selected, data must be accurate as of verification

If not selected, student can select their file to be selected

If not selected, not required to monitor data element change

(AVG-85)

19

Verification 2013-2014 and Beyond Schools 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.

20

Reminders When speaking to a student stress to request the tax return transcript not

an account transcript.

Student(s) and/or Parent(s) who cannot obtain a tax return transcript:

For student(s) and/or parent(s) who have been victims of identity theft, we will accept a signed copy of the paper tax return and a copy of the IRS Form 14039 or filed police report or letter from IRS.

For student(s)s and/or parent(s) who owe taxes and are not able to obtain a tax return transcript will be required to submit the following: signed copy of 2012 paper tax return, communication from the IRS stating request was unsuccessful signed by tax filer (ex: letter from IRS or screen shot print from the online IRS website), and a completed and signed IRS form 4506T-EZ or 4506T listing the institution as a third party.

For student(s) and/or parent(s) who have filed an amended tax return, we will accept the tax return transcript and Form 1040X (There is no need to wait for an account transcript.).

21

Available Resources

Federal Student Aid Handbook Application and Verification Guide

http://ifap.ed.gov/fsahandbook/1112FSAHandbookAVG.html

Institutional Policies and Procedures IRS Publication 17 found at www.irs.gov

22

Questions ?

Confused??Don’t be a crab & bury your head

in the sand. Raise your hand & ask your

question!!!