National Association of Student Financial Aid Administrators Presents … © 2013 NASFAA Verification Module 4

Slide 4-2 © 2013 NASFAA Verification Process of verifying accuracy of Free Application for Federal Student Aid (FAFSA) data Regulations define: –Whose application must be verified –FAFSA information to be verified –Documentation used to verify data elements Regardless of verification selection, must always resolve discrepancies and conflicting information

Slide 4-3 © 2013 NASFAA Module Topics Whose application must be verified Quality Assurance (QA) Program requirements Verification tracking groups and FAFSA information to be verified Acceptable documentation Data element corrections

Slide 4-4 © 2013 NASFAA Data element updates Status codes Interim disbursements Verification time frames Policies and procedures Module Topics

Slide 4-5 © 2013 NASFAA Verification Selection Process Customized approach for 2013–14 FAFSA information that must be verified: –Will vary from applicant-to-applicant; –May be information that is not used in calculating applicant’s EFC; and –May change from award year-to-award year New!

Slide 4-6 © 2013 NASFAA Verification Tracking Groups For 2013–14, CPS-selected applicants assigned to one of five verification tracking groups Each tracking group determines items to be verified and required documentation

Slide 4-7 © 2013 NASFAA Required Verification Data Items Adjusted gross income—AGI (tax filers) Untaxed income from tax return (tax filers) –IRA deductions and payments –Untaxed portions of pensions –Education credits –Tax-exempt interest income

Slide 4-8 © 2013 NASFAA Required Verification Data Items U.S. income tax paid Income earned from work (nontax filers) Supplemental Nutrition Assistance Program (SNAP) Benefits Child support paid

Slide 4-9 © 2013 NASFAA Required Verification Data Items Number in household size Number in college High school completion status Identity/Statement of Educational Purpose NEW

Slide 4-10 © 2013 NASFAA Items That May Be Verified Using IRS Data Retrieval Tool or Tax Transcript AGI U.S. income tax paid Untaxed IRA distributions

Slide 4-11 © 2013 NASFAA Items That May Be Verified Using IRS Data Retrieval Tool or Tax Transcript Untaxed pensions Education credits IRA deductions and payments Tax-exempt interest

Slide 4-12 © 2013 NASFAA Items That May Be Verified Using a Tax Transcript Foreign income must be included on FAFSA, even if it cannot be taken out of the country in which it was earned Earned foreign income and taxes paid to a central foreign government are treated in same manner as U.S. income and taxes paid A foreign tax return is considered equivalent to IRS Form 1040

Slide 4-13 © 2013 NASFAA Changes to data elements that were incorrect at time of application If data are correct as reported and valid Institutional Student Information Record (ISIR) or Student Aid Report (SAR): –Pay Federal Pell Grant, Iraq and Afghanistan Service Grant (IASG), Federal Supplemental Educational Opportunity Grant (FSEOG), Teacher Education Assistance for College and Higher Education (TEACH) Grant, and Federal Perkins Loan Verification Corrections

Slide 4-14 © 2013 NASFAA Verification Corrections If data correct as reported and valid ISIR/SAR: –Employ students under Federal Work-Study (FWS) –Originate and disburse Federal Direct Student Loans (Direct Loans)

Slide 4-15 © 2013 NASFAA Verification Updates Number in household and number in college: If not selected, cannot update for changes occurring after original application filed If not selected, institution not required to monitor data element changes Institution may select applicants if it believes data elements are inaccurate

Slide 4-16 © 2013 NASFAA May require student to update dependency status, household size, or number in college if change results from change in student’s marital status Must update household size if dependent student’s parent remarries after application, but before verification Verification Updates

Slide 4-17 © 2013 NASFAA Must: Be written Address school options where flexibility exists Be made clear to all students Be consistently applied Verification Policies and Procedures

Slide 4-18 © 2013 NASFAA