1. The Financial Aid Verification Process
The Solution Center
The Financial Aid Verification
Process

2. Objective
What you will learn?
TSC staff will be able to understand the verification process
Know how and why students are selected
Know what documentation is required

3. What is Verification
Verification is the process used to confirm that the information provided on a student's FAFSA is correct. Only a portion of students are selected for the verification process.
The Financial Aid Office verifies all applicants federally selected by the Department of Education (ED) who are eligible for need based funds.
Students may be institutionally selected for verification on a case-by-case basis. This may happen as a result of:
Counselor review
Student request
Student submits documentation not requested
Families requesting a special conditions review
Families with appeal from prior year

4. Verification Tracking Groups
For the academic year ED designated targeted verification groups. ED will select applicants for the groups based on how the applicant answered the questions on FAFSA. There are 5 Verification Groups. Each group has their own group of items that must be submitted:
Verification Group
Verification Group Name
Initial Documents Required V1
Standard Verification Group.
Most students fall into this group
Verification Worksheet (includes verification of SNAP and Child Support)
Tax Return Transcript (If no Data Retrieval)
W-2 Forms V3
Child Support Verification Group
Verification of Child Support Paid Worksheet V4
Custom Verification Group
High School Completion Status
Identity/Statement of Educational Purpose
SNAP Benefits Form
Child Support Paid Form V5
Aggregate Verification Group (Combines all the requirements from Group 1 and Group 4)
Verification Worksheet
Tax Return Transcript (If no Data Retrieval) V6
Students are selected for this group because the total taxable and untaxed income does not appear sufficient to provide financial support to the family
Low Income Worksheet

5. Verification Tracking Groups
The verification groups can be viewed on the Financial Aid Status Page.

6. Federally Selected Students
Federally Selected students will have a verification flag automatically set to “Required”
Will be assigned the verification checklists requesting documentation required

7. Institutionally Selected Students
FA staff will manually set the INST Verification Status and Verification Flags to “select” and assign the checklists for the documents being requested

8. Who is NOT required to Complete Verification
Below is a list of some circumstances that may exclude an application from this process:
A student who does not receive need-based Title IV aid (Non-Need students)
Applicant who died during the award year
Applicant who is incarcerated
Applicant whose spouse does not live in the United States and cannot be contacted, is mentally or physically incapacitated, is deceased, or is residing at and unknown address and the student cannot obtain the address
A dependent student whose parents cannot comply because of specified reasons (i.e. parents are deceased, are physically or mentally incapacitated, or the student does not know where the parents reside)
Note: FAO staff must identify and document why the student is not required to complete the verification process

9. How are Students Notified
Students are notified that they are selected for verification via the Student Aid Report (SAR) processed by filing FAFSA
In addition, the Missing Information Letter (MIL) notifies students that they have been selected for verification
Students are able to view what is requested on their self-service “to-do list”

10. Required Forms Tax Forms Required:
Verification Worksheet (Dependent or Independent)
Student and Parent Tax Return Transcripts (NOT Tax Account Transcripts) required if IRS Data Retrieval not successfully completed
W2 Forms (Institutionally required)

11. Additional Tax Forms Requested
Other Tax Forms Regularly Requested :
Schedule C – Self-Employment Income in lieu of a W-2
Schedule K-1 - Corporate Tax Returns
1099R – Pension, Annuities, IRAs
Note: If a student inquires about which forms to submit or asks the school to make a copy, these forms should be included if a student or parent received or filed the form

12. IRS Data Retrieval & Tax Return Transcripts
The IRS Data Retrieval (DRT) process should be encouraged for all families in lieu of submitting a Tax Return Transcript.
If student fails to submit a copy of the tax transcript or does not successfully complete the IRS data retrieval process before the verification deadline, the student becomes ineligible for FSA funds
Note:
Refer to FA_17_Verification_Process_Data_Retrieval_Instructions , for instructions on how to do the IRS Data Retrieval on the FAFSA
IRS Data Retrieval
Tax Return Transcripts (parent, Student, Spouse)
Successful
Waived
Unsuccessful
Requested

13. Verification Processing
Verification specialists receive an automated report twice a week showing students ready to review. Student files listed on the report are pulled by the Processing area and delivered to the Verification Specialists.
Note: During peak times, processing time can be up to two weeks; however normal processing time is hours.
Once verification review is completed, ISIR is updated and corrections submitted to CPS for processing:
After the changes are confirmed by CPS, a new ISIR is sent to the school reflecting the changes made during verification.
(New ISIRs load every Monday Overnight)

14. Additional Verification Processing
In addition to correcting the ISIR data, the Verification Specialist updates verification flags and checklists to a completed or waived status.

15. Incomplete Verification Processing
If there are items preventing verification to be completed (i.e., W2’s do not match wages on tax return), Verification Specialists will:
Make a comment
Add new checklists for the items needed or update existing checklist
Assign and send a new MIL to the student’s UMass Lowell

16. Completing Verification Process
Student’s completed file is put in the student folio and placed filed in the Processing Area
Students are notified of the results of verification via financial aid award notification