2016–17 Verification A NASFAA Authorized Event Presented by [Name of Presenter/Association] [Location] [Date], 2016

Lesson 1: Introduction to Verification

Direct Subsidized Loans Introduction Checking the accuracy of FAFSA information Regulatory specifications Applies to recipients of subsidized aid Federal Pell Grant FSEOG FWS Federal Perkins Loan Direct Subsidized Loans

Central Processing System Selection Process Applications can be selected by: Central Processing System Institution OR

Institutional exclusion Exclusions Verification not required under certain circumstances Entire application Spousal data Parental data Certain data elements Institutional exclusion

Verification Tracking Groups Standard Verification Group Custom Verification Group Aggregate Verification Group Household Resources Group

Verification Tracking Groups Tax filer information Nontax filer information Household size Number in college SNAP, if reported Child support paid, if reported V1

Verification Tracking Groups SNAP, if reported Child support paid, if reported High school completion Identity and Statement of Educational Purpose V4

Verification Tracking Groups V1 tax filer and nontax filer information High school completion Identity and Statement of Educational Purpose V5

Verification Tracking Groups V1 tax filer and nontax filer information Certain other untaxed income V6

Documentation Requirements IRS Data Retrieval Tool Tax Return Transcript Verification Worksheets Signature requirements

Tax Filers

AGI Documentation Exceptions Tax return filing extensions Amended tax returns IRS tax-related identity theft Inability to obtain a Tax Return Transcript Tax account information cannot be located Foreign and U.S. territory tax returns

Tax Filers U.S. Income Tax Paid Tax Return Transcript 1040 Transcript—Income Tax After Credits Per Computer minus Excess Advance Premium Tax Credit Repayment Amount 1040A Transcript—Tentative Tax Per Computer minus Total Credits Per Computer 1040EZ Transcript—Total Tax Liability TP Figures Per Computer minus Health Care: Individual Responsibility 1040 Line 56 minus Line 46 1040A Line 28 minus Line 36 1040EZ Line 10 FAFSA Student Question 37 Parent Question 86

Nontax Filers—Income Earned from Work Statement or verification worksheet; and Form W-2 from each employer

Tax Filers—Income Earned from Work Tax Return Transcript 1040 Transcript—Wages, Salaries, Tips, etc. + Business Income or Loss Sch. C Per Computer + Farm Income or Loss (Schedule F) Per Computer 1040A Transcript—Wages, Salaries, Tips, etc. + Business Income or Loss Sch. C Per Computer + Farm Income or Loss (Schedule F) Per Computer 1040EZ Transcript—Wages, Salaries, Tips, etc. 1040 Lines 7 + 12 + 18 + Schedule K-1, Box 14, Code A Form W-2, Box 1 1040A Line 7 1040EZ Line 1 FAFSA Student Questions 39 and 40 Parent Questions 88 and 89

Tax Filers—Untaxed Income and Benefits

Tax Filers—Untaxed Income and Benefits

Tax Filers—Untaxed Income and Benefits

Required Verification Data Items Other untaxed income from FAFSA Payments to tax-deferred pension and savings plans Child support received Housing, food, and other living allowances paid to members of the military, clergy, and others Veterans’ noneducation benefits Other untaxed income Money received or paid on the student’s behalf Resources or benefits not reported on FAFSA

Required Verification Data Items Supplemental Nutrition Assistance Program (SNAP) benefits Child support paid Household size Number in college High school completion status Identity/Statement of Educational Purpose

Other Application Information Optional for school Examples of data elements to verify: Cash, saving, and checking accounts Real estate and investment properties Other forms of untaxed income

Special Tax Data Considerations Tax extensions Amended tax returns Separating income on joint tax returns IRS tax-related identity theft Inability to obtain a tax return transcript Government cannot locate tax account information Foreign and U.S. Territory income

Verification Status Codes Meaning Comments V Verified Applicable to records selected by either the CPS or the institution. W Without documentation Student has been selected and institution has chosen to pay initial Federal Pell Grant disbursement without documentation. This code must be updated once verification is completed. S Selected/ Not verified Selected by CPS, but not verified because the application did not meet the school’s QA verification criteria, or the application met one of the verification exclusions. Blank Not verified The application was not selected by the CPS or the institution; therefore, it was not verified. Includes QA institutions. Application was selected by the CPS after student ceased attending the institution and after all disbursements (including late disbursements) were made.

Lesson 2: Changing Applicant Data

Corrections Correct as Reported Required Optional Disburse grants Employment may begin Originate loans Change in a single dollar item of $25 or more Errors in nondollar items School may choose to submit all corrections

Required Optional Updates Household size Number in college Dependency status Change in marital status

Professional Judgment Adjustments Optional Verification of specified-year data and resolution of conflicting information required

Lesson 3: Interim Disbursements, Time Frames, and Policies and Procedures

Interim Disbursements Conditions Prior to verification After verification, but prior to receipt of SAR/ISIR

Federal Pell Grant, Federal Perkins Loan, FSEOG Program Requirements Federal Pell Grant, Federal Perkins Loan, FSEOG One interim disbursement FWS Employ up to 60 consecutive days

Program Requirements TEACH Grant, IASG Direct Loan Program Subsidized: originate, but not disburse Unsubsidized and PLUS: originate and disburse TEACH Grant, IASG May disburse

Ineligible for Interim Disbursement Considered to be an overpayment under certain conditions Who is responsible to repay the overpayment?

Verification and the Award Cycle Upon receipt of ISIR Before making tentative award After making tentative award, but before award confirmation After student accepts award, but before disbursement After interim disbursement, but before second disbursement (as applicable)

Verification Deadlines Institutional deadline Federal Pell Grant deadline Campus-Based and Direct Loan deadlines

Verification Policies and Procedures Selection Procedures How are students selected Information Shared Documentation requirements Student responsibilities Document Submission Deadlines Consequences for noncompliance Post-Verification Process to correct data Outcome notification to student