1. Tanya McGee Katie Starling Kansas State University October 3, 2013
Verification
Tanya McGee
Katie Starling
Kansas State University
October 3, 2013

2. Agenda 2013-2014: Where we are 2014-2015: Where we are going
Impact of GEN-13-12
Discussion/Question & Answer

3. Verification
Data elements to verify remained largely the same as
High school completion status and Identity/ Statement of Educational Purpose were added
Introduction of verification groups
V1, V2, V3, V4, V5
Student should remain in the same verification group

4. 2013-2014 Data elements to verify
Household size
Number in college
Income information for tax filers
AGI
Taxes Paid
Education Credits
Specific untaxed income: IRA distributions, pensions, IRA deductions, and tax exempt interest
Education credits -
Do you ask about rollovers? Tax returns would indicate if an IRA or pension were rolled-over. If you ask, what documentation do you collect?
Although it is not required to verify Income Earned from Work, on what occasion would you ask for W2s?

5. 2013-2014 Data elements to verify (con’t)
Income information for non-tax filers
Income earned from work
SNAP benefits (ie. Food Stamps)
Only if ISIR indicates this was true
Child Support Paid
Non-tax filers – we are suppose to collect W2s, but does anyone collect 1099-MISC also?
Do you ask all students about child support paid or SNAP? Do you tailor your verification?
What about your V3 group…do you get information about child support paid only to have HH size questions raised, and then need to collect that documentation to clear up the conflicting information?

6. 2013-2014 Data elements to verify (con’t)
High School Completion Status
Recognized equivalents of high school diploma
Identity/Statement of Educational Purpose
Must use exact wording provided by ED for the Statement of Educational Purpose
Recognized equivalents of HS Diploma: GED, state certificate received by a student after the student has passed a state-authorized exam that the state recognizes as the equivalent of a HS diploma, successfully completing at least a 2-year program that is acceptable for full credit toward a bachelor’s degree, excelled academically in high school (Doogie Howser), homeschool transcript
Identity/SEP: Appear in person with government issued photo ID. Must maintain annotated copy of ID submitted by student that includes date received and the name of the institutionally-authorized individual that accepted the documentation. If they cannot appear in person, a copy of the government issued photo ID presented to the notary who witnessed the student’s signature on the SEP.

7. K-State’s ISIRs for AY14 Received (duplicated) Loaded (unduplicated)
Total ISIRs
45,335
19,280
Total Selected
18,329
5,500 V1
18,103
5,448 V2 24 10 V3
112 33 V4 11 V5 75 8
Loaded ISIRs: Dependent, 1650 Independent, 7 Rejected X = 5500 total selected
V1s – 5 are rejected; V5 – 2 are rejected due to changing the student from Independent to Dependent
5500/19280 = 28.53% selected for verification
As of Monday, September 30, 2013

8. So…how’s it going? Red ribbon year? Maybe blue, green, white?
1st is blue; 2nd is red; 3rd is yellow; 4th is white; 5th is pink; 6th is green.
Take pulse of audience – what has been problematic, what is going well, challenges, etc.
Amended tax returns? Victims of Identity Theft?
Parents who filed jointly but now have different marital status? Any common law marriage?
What about people who file extensions?
Do you have very many in V2 or V3?

9. 2014-2015 Verification Federal Register published June 13, 2013
Dear Colleague Letter, GEN-13-16, published June 13, 2013

10. 2014-2015 Verification – What’s new
Verification group changes
Say goodbye to V2 – SNAP
Say hello to V6 – Household Resources
Applicants will no longer be assigned to V2, but we will still be required to verify SNAP in the other verification tracking groups (V1, V4, V5, V6)
SNAP – 2012 and/or 2013 receipt of benefit

11. Verification Tracking Groups

12. 2014-2015 Verification – What’s new (con’t)
Verification items remain the same as AY14, but with one addition
Other Untaxed Income
Introduction of the new verification tracking group – V6, Household Resources
Q45 for the student and Q94 for the parent(s)
BTW – not necessarily related to verification, but it will help with verification. The FAFSA will now ask the student & parent their Tax Return Filing Status. Options: Single, Head of Household, Married, filed joint return, Married, filed separate return, Qualifying widow(er), Don’t know

13. 2014-2015 Verification – Other Untaxed Income
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 (workers’ compensation, untaxed portion of health savings accounts, etc.)
Money received or paid on the student’s behalf

14. 2014-2015 Verification – Other Untaxed Income
Acceptable documentation includes:
Signed statement by the student and parent, if applicable, that lists the untaxed income amounts
Copies of the 2013 W-2s from all sources of income

15. 2014-2015 Verification – Other Untaxed Income
If the FAA determines the income verified does not appear to provide sufficient financial support, the student or parent must explain how the family was financially supported during calendar year 2013.
Income sources: AGI, income earned from work, all untaxed income, and other untaxed income not included on the FAFSA.

16. 2014-2015 Verification – Other Untaxed Income
Hence, the name for the new tracking group - Household Resources
Hey! You’re living on nothing! Prove it!
Sources of income can include the “usual” items
But could also include untaxed income not listed on the FAFSA
Welfare benefits Additional child tax credit
Earned income credit Untaxed social security benefits
Supplemental security income (SSI)

17. 2014-2015 Verification – Other Untaxed Income
Household Resources
ED will not be specifying an income threshold
Leaving that to the institution to define
How will you determine your “magic” number?
Use poverty guidelines?
What seems appropriate/necessary for a certain family’s size and geographic location?
Discussion

18. Modifications to Acceptable Documentation
Nontax filers – if an institution questions the claim of not filing, the institution may/must require the student to submit a “Verification of Nonfiling” from the IRS.
The IRS will not be issuing until after June 15, 2014.
“may require” is the text found in the Federal Register; “must require” is the text found in GEN You are held accountable to what is in law (ie. Federal Register).
Important to know the income threshold when a person is required to file. Income threshold is dependent on whether the person is claimed as an exemption by someone else or not.

19. Modifications to Acceptable Documentation
High School Completion Status
Previously collected HS Completion documentation may be used as long as it meets the criteria outlined in the Federal Register.
High School Completion Abroad – may obtain a copy of a “secondary school leaving certificate” through the appropriate government agency
Homeschool – secondary school completion credential vs. transcript signed by student’s parents
Eg. Ministry of Education

20. Modifications to Acceptable Documentation
Identity/Statement of Educational Purpose
Specific text for provided in the Federal Register
Documentation may be converted into an electronic record (ie. your imaging system)
Household Size
Includes parents who are married or unmarried and living together, irrespective of gender
GEN-13-12

21. Impact of GEN-13-12
Beginning with , dependent students will be required to provide income information from the student’s legal parents (biological or adoptive) regardless of marital status or gender, if those parents live together.
In the past, income has been excluded when the parents were unmarried, even if the parents were living together.
In the past, we may have tried to determine if the parents were considered common law marriages.

22. Impact of GEN-13-12
Philosophy – the family should help pay the educational expenses of their child.
Help to ensure limited taxpayer resources are directed to students with the most need, regardless of the parents’ marital status or gender, when those parents are living together.

23. Impact of GEN-13-12
New response to FAFSA question, “As of today, what is the marital status of your legal parents?”, will include “Unmarried and both parents living together.”
FAFSA on the Web will no longer have mother/father reference, but will reference Parent1/Parent2.

24. Additional Requirements
Required to enter Identity Verification Results into FAA Access (V4 and V5)
Manually enter information one student at a time.
FAA Access will accept a flat file after April 2014.
Must enter results even for non-respondents.

25. Discussion Question & Answer
Possible Topics
Impact to your verification forms
Impact to your student systems
Impact to your website
More forms to create!
Update your website to explain GEN

26. Resources Federal Register, published June 13, 2013
Dear Colleague Letter (GEN-13-16), published 6/13/13

27. Resources
2013 NASFAA Conference, Department of Education Verification session handout/audio
NASFAA’s News July 30, 2013 – FAA Access Reporting for Verification of Identity and HS Diploma Required in

28. Contact Information
Tanya McGee
Associate Director
Office of Student Financial Assistance
Kansas State University
Katie Starling
Assistance Director