1. Verification Requirements Program Integrity Final Rule

2. Verification – Definitions FAFSA ISIR and SAR Specified Year – base or prior-prior year §668.52

3. Verification – Definitions Subsidized student financial assistance – need based Unsubsidized student financial assistance – not need based §668.52

4. Verification - Applicant Selection Schools must verify ALL CPS-selected applicants 30% cap on school-defined applicants eliminated Schools must verify all selected applicants unless verification exclusions apply Schools must complete verification prior to PJ §§668.53-668.54

5. Verification Exclusions Excluded from verification: Applicant dies, does not receive aid, or receives only unsubsidized aid Transfer student if prior school completed verification Parent or spouse resides outside U.S. and cannot be contacted Parents (both) or spouse mentally incapacitated Parents or spouse cannot be located §668.54

6. Verification Exclusions No longer excluded from verification Legal residents of Commonwealth of Northern Mariana Islands, Guam and American Samoa Citizens of Republic of Marshall Islands, Federated States of Micronesia and Republic of Palau Incarcerated applicants Recent immigrants Parents who are deceased Parents or spouses who are physically incapacitated

7. Verification - Updates Must update FAFSA information if household size or number in college changes Must update dependency status changes during the award year (unless due to change in marital status) May update dependency status changes due to change in marital status during the award year- To address inequity or To reflect ability to pay §§668.55;668.58

8. Information to be Verified Department to annually publish a list of verification data in the Federal Register Selected applicants SARs/ISIRs will list specific data items to be verified Items to be verified may change annually and differ from applicant to applicant §668.56

9. Documentation Verification of AGI, income earned from work and taxes paid Tax return or tax transcript Signature of at least one filer Do not need original signature Numbers obtained via IRS Data Retrieval (02 IRS Request Flag code) Applicant not required to file tax return Signed statement listing income or W-2s §668.57

10. Documentation (contd) Unable to obtain tax return Copies of W-2s Self-certified statement of AGI IRS grants 6-month tax filing extension No requirement to obtain copy once filed If school requires copy once filed, it MUST re- verify AGI and taxes paid §668.57

11. Documentation (contd) Can accept tax returns signed by tax preparer (instead of tax filers) Signature or stamp Preparer name and address and Social Security number (SSN) or Employer Identification Number (EIN) or Preparer Tax Identification Number (PTIN) §668.57

12. Interim Disbursements If verification does not change eligibility, school may make interim disbursement of: Pell Grant, Perkins Loan, Work-study, SEOG, and Subsidized Stafford Loan If interim disbursement creates overpayment, school is liable §668.58

13. Tolerances For subsidized student financial assistance, any change to a single dollar item of $25 or more must be submitted to CPS – The $400 tolerance for dollar items is replaced by the $25 tolerance No change was made for non-dollar items Pell Grant eligibility must be recalculated and the award paid based on the revised EFC §668.59(a)

14. Recovery of Funds If the school makes an interim disbursement of subsidized student financial assistance and does not receive corrected ISIR/SAR by deadline, it must reimburse the program as appropriate. §668.61