Verification 101

1. Verification 101 Shannon Simmons Clayton State University

2. Verification 101 What is Verification? • Process by which certain required data reported on the FAFSA is reviewed for accuracy and completeness.

3. Verification 101 Required Written Policies and Procedures • Deadlines for student to provide documentation and consequences of failure to meet deadlines • Method by which students are notified of award changes resulting from verification • Procedures for correcting FAFSA data for students • Procedures for referring overpayments to ED

4. Verification 101 Notification to Selected Students • School must provide a written statement providing a clear explanation of the documents required for student to submit for verification. • Student’s responsibilities with regard to the verification process. This includes correction procedures, deadlines for completing any actions required & consequences of missing deadlines. • Notification methods that the school will use to notify students of award changes as a result of verification and the time frame for notification.

5. Verification 101 How Are Applicants Selected? • CPS selection 1. Edit checks which identify inconsistencies and potential errors 2. Random selection • School selection • Criteria set by school

6. Verification 101 How Many To Verify? • General requirement is to verify all those selected by CPS BUT • May stop at 30% of your applicant pool, if CPS selects more than 30%

7. Verification 101 Verification Exclusions • Student is incarcerated • Student is recent immigrant who arrived in US during 2010 or 2011 • Spouse or Parents unavailable • Deceased or Mentally or Physically incapacity • Residing in country other than U.S. and cannot be contacted by normal means • Can’t be located because his or her address is unknown and student can’t obtain it • Death of the Student • Applicant verified by another school • Pacific Island resident • Student not an aid recipient

8. Verification 101 Required Verification Items • Household size • Number enrolled in college • Adjusted Gross Income (AGI) • U.S. Income tax paid • Certain untaxed income and benefits • Child Support • IRA/Keogh Deductions • Interest on tax-free bonds

9. Verification 101 Documents Needed for Verification • Verification Worksheet • Department of Education forms or School created forms • Appropriate Tax Forms • Other documentation in lieu of Worksheet or Tax Returns • Signed statement for household size • Signed statement or institutional certification for number enrolled in college • IRS tax transcript, other signed IRS forms with tax data, Form W-2, Form 4868 or a signed statement for AGI & taxes paid • Signed statement or official agency documentation for untaxed income and benefits

10. Verification 101 How to Verify? • Compare the verification documents with the original • FAFSA information • May create own checklist/spreadsheet • May use verification tool on FAA Access • Determine that • information is correct or • corrections must be made • May use tolerance option if all errors are dollar amount errors

11. Verification 101 Verification Tolerance • Tolerance is $400. If total difference between incorrect and correct values for certain items is more than $400, then correction is needed. • If difference between the incorrect total and correct total is $400 or less, then errors are within tolerance. • Awarding may be done without submitting a correction or recalculating EFC • Optional- Can always have student submit corrections for processing.

12. Verification 101 Verification Status Codes • Used when reporting Pell, ACG, SMART and Direct Loan payments to COD • V - Verified • W - Paid without Documentation • S - Selected, but not verified • Blank - ISIR not selected by CPS or school

13. Verification 101 Verification Deadline • Within 120 calendar days after student’s last date of enrollment OR date specified in Federal Register (September 26, 2011) • Student must provide all verification documentation • ISIR must be corrected, if necessary

14. Verification 101 Remember • Conflicting information must be resolved, regardless of verification status • Separate process from verification • Involves any information of which the school has knowledge • Must resolve before disbursing any aid

15. Verification 101 Professional Judgment • Definition – Professional Judgment is the Authority provided under the Higher Education Act for aid administrators to exercise discretion in specific areas of student aid administration

16. Verification 101 Importance of PJ • We (FA Administrators) have flexibility in dealing with unique circumstances • We are allowed opportunities to deal with special circumstances which cannot be anticipated by legislation • Through PJ, we are able to analyze students’ situation on a case-by-case basis that is not possible through the methodology.

17. Verification 101 Circumstances that are not unusual, does not merit PJ • Parents refusing to contribute to the student’s education; • Parents unwilling to provide information on the application or for verification; • Parents not claiming the student as a dependent for income tax purposes; and/or • Student demonstrating total self-sufficiency. • No Parental Information

18. Verification 101 Questions?