Presentation on theme: "Michelle Jackson Director of Financial Aid Slippery Rock University"— Presentation transcript:
1Michelle Jackson Director of Financial Aid Slippery Rock University Verification 101Michelle JacksonDirector of Financial AidSlippery Rock University
2Agenda 2014-15 Verification Reminders for Verification Processing Verification ItemsAcceptable DocumentationReminders for Verification ProcessingVerification
3VerificationFederal Register Notice, published June 13, 2013, Free Application for Federal Student Aid (FAFSA) Information To Be Verified for the Award YearDear Colleague Letter GEN-13-16, Published June 13, 2013, Award Year: FAFSA Information to be Verified and Acceptable Documentation
42014-15 Verification Tracking Groups Verification Tracking FlagVerification Tracking GroupVerification DescriptionV1Standard VerificationRecord selected because conditions based on statistical analysis error-prone risk model were metV2Reserved for FSA Use OnlyN/AV3Child Support Paid VerificationRecord selected for Child Support Paid criteria onlyV4Custom Verification GroupRecord selected for Identity criteria and SNAP/Child Support PaidV5Aggregate Verification GroupRecord selected for Identity criteria, “Standard Verification” criteria and SNAP/Child Support PaidV6Household Resources Verification GroupRecord selected for Other untaxed income, “Standard Verification” and SNAP/Child Support Paid
5ISIR Verification Flags Y = selected for verificationN = not selected for verification* = selected for verification on a subsequent transaction
6V1 – Standard Verification (Tax Filers) Adjusted Gross IncomeU.S. Taxes PaidUntaxed IRA DistributionsUntaxed PensionsEducation CreditsIRA Deductions and PaymentsTax-Exempt Interest IncomeHousehold SizeNumber in CollegeChild Support Paid*SNAP (Food Stamps)**If reported on FAFSA
7V1 – Standard Verification (Non-Tax Filers) Household SizeNumber in CollegeChild Support Paid*SNAP (Food Stamps)**If reported on FAFSAIncome Earned from Work
8V3 – Child Support Paid Child support paid by: The student (or spouse) The student’s parent(s)
9V4 – Custom Verification Child Support Paid*SNAP (Food Stamps)*High School Completion StatusIdentity/Statement of Educational Purpose*If reported on FAFSA
10V5 – Aggregate Verification All items in V1 (Standard Verification Group)Tax FilerNon-Tax FilerANDHigh School Completion StatusIdentity/Statement of Educational Purpose
11V6 – Household Resources All items in V1 (Standard Verification Group)Tax FilerNon-Tax FilerANDOther Untaxed IncomePayments to tax-deferred pension and savings plansChild support receivedHousing, food and other living allowancesVeterans non-education benefitsAdditional untaxed incomeMoney received or paid on student's behalf
132014-15 Verification ED did not publish verification worksheets Suggested text provided in IFAP Electronic Announcement posted November 8, 2013Must use exact language from Department for Statement of Educational Purpose
14Household SizeSigned statement from the applicant (and one parent, if the applicant is dependent) listing the following for each household member:NameAgeRelationship to the applicantA dependent student’s legal parents who live together, regardless of marital status or gender, are required to provide information on the FAFSA and for verification.
15Household Size Not required when: Dependent student lists 2, and parent is single, divorced, separated or widowedDependent student lists 3, and parents are married or unmarried and living togetherIndependent student lists 1, and student is single, divorced, separated or widowedIndependent student lists 2, and student is married
16Number in CollegeSigned statement from the applicant (and one parent, if the applicant is dependent) listing the following for each household member attending a Title IV-eligible school at least half-time during the award year :NameAgeName(s) of the applicable school(s)Not required when number in college is 1If the school believes information from the FAFSA or the signed statement is inaccurate, it must obtain a statement from each listed school unless the household member is not yet registered or will attend the applicant’s school.
17Tax Filers OR Information obtained through IRS data retrieval IRS Request Flag value: 02ORTax Return Transcript (obtained from IRS)Record of Account Transcript (obtained from IRS)
182014-15 IRS Request Flags Code Description Blank IRS Data Retrieval Tool not available in the application method utilized by the student (for example, paper FAFSA, EDE, or FAA Access to CPS Online).00Not eligible to use the IRS Data Retrieval Tool and was therefore not presented with the option to use it in FAFSA on the Web.01Presented with the option to use the IRS Data Retrieval Tool in FAFSA on the Web and elected to use it, but did not transfer IRS data into the FAFSA.02IRS data was transferred from the IRS and was not changed by the user prior to submission of an application or correction.03IRS data was transferred from the IRS and changed by the user prior to submission of an application or correction.04IRS data was transferred from the IRS and then changed by the user on a subsequent transaction.05Presented with the option to use the IRS Data Retrieval Tool in FAFSA on the Web, but did not elect to use it.06IRS data was transferred from the IRS, but a subsequent change made the student or parent ineligible to use the IRS Data Retrieval Tool.
20When IRS Data Retrieval CANNOT Be Used Married independent student and spouse filed separate tax returnsMarried parents of dependent student filed separate tax returnsWhen dependent student’s parents are unmarried and living togetherWhen student or parent had a marital status change after 12/31/13When student, spouse, or parent filed an amended tax return – 1040X
25Income Earned From Work (Non-Tax Filers) Copy of a W-2 Form for each source of employment income received in 2013If the applicant is unable to obtain the required W-2 Form(s) in a timely manner, the school instead may accept a signed statement listing:Source of incomeAmount of income earned from workReason the W-2 Form(s) is not available
26No Income Earned From Work Signed statement certifying the applicant has not filed and is not required to file taxes for 2013If an institution questions a claim that the tax filer is not required to file, must require applicant to submit a Verification of NonfilingObtained by the tax filer using IRS Form 4506-T and checking box 7Verification of Nonfiling for 2013 tax year should not be accepted if dated prior to June 15, 2014
27Child Support Paid Signed statement from applicant or parent listing: Name of the individual who paid the supportName of the child support recipientName(s) of the child or children for whom support was paidAmount of support paid during the calendar yearIf the school believes information provided is inaccurate, it must obtain documentation such as a copy of a separation agreement/divorce decree showing the amount to be paid, a statement from the child support recipient showing the amount paid, or copies of cancelled checks, money order receipts or electronic payment records.
28SNAP (Food Stamps)Signed statement from the applicant (or parent, if the applicant is dependent) certifying that the applicant or another household member received Food Stamps in calendar year 2012 and/or 2013.If the school believes information provided on the signed statement is inaccurate, the applicant must provide the school with documentation from the applicable Food Stamp issuing agency.
29High School Completion Status High school diplomaCopy of high school diplomaCopy of final official high school transcript that shows the date when the diploma was awarded“Secondary school leaving certificate” (or another similar document) for students who completed secondary education in a foreign country and are unable to obtain a copy of their diploma or official transcript
30High School Completion Status Recognized equivalentGEDState certificate recognized as an equivalent to a diploma.Academic transcript showing successful completion of at least a two-year program fully acceptable toward a bachelor’s degree.Documentation that the student excelled in high school (in accordance with the postsecondary institution’s written policies), if the student did not complete high school and enrolls in at least an associate degree program.
31High School Completion Status Home school credentialTranscript signed by the parent or guardian documenting the successful completion of secondary education, listing the courses completed by the student, or a state-issued home school certification credential
32Identity Statement of Educational Purpose An applicant must provide the following to the school in person:Government-issued photo identification, such as a driver’s license or passport.Signed statement of educational purpose for the award year.For documentation presented in person, the school must maintain an annotated copy of the ID provided by the applicant, including the following information:Date the identifying document was received.Name of the institutionally authorized individual who received the documentation.It is against the law to photocopy a military ID. Therefore, a military ID may not be used for this purpose.After the institution reviews the original identification and signed statements, it may convert the documentation to an electronic record.
33Identity Statement of Educational Purpose If an institution determines that an applicant is unable to provide the information in person, the applicant must provide to the school:Original notarized statement of educational purpose signed by the applicant for the award year.Copy of a government-issued photo identification, such as a driver’s license or passport, that is referenced in the notarized statement.
34Other Untaxed IncomeSigned statement from the applicant (and one parent, if the applicant is dependent) listing the sources of other untaxed income on the FAFSA:Payments to tax-deferred pension and savings plansChild support receivedHousing, food and other living allowances paid to members of the military, clergy and othersVeterans non-education benefitsOther untaxed incomeMoney received or paid on the student’s behalfIf the verified amounts of untaxed income, when combined with other income information, do not appear to provide sufficient financial support for the household size, the school must document how the family was financially supported in 2013.
36Verification & Professional Judgment If a student was selected for verification (by school or the Department), you must complete verification before exercising professional judgment.If a student was not selected for verification, not required to complete verification before exercising professional judgment.Was long standing policy at Department
37Verification Exclusions No verification required if:Student diesStudent receives no Title-IV aidStudent eligible for unsubsidized aidTransfer student who completed verification at previous school and current school can obtain certification with ISIR transaction number from previous school
38Verification Exclusions Verification of parental information not requiredParents cannot be reached by normal means of communicationBoth parents are mentally incapacitatedVerification of student’s spouse’s information is not requiredSpouse is deceasedSpouse is mentally incapacitatedSpouse cannot be reached by normal means of communication
39IRA Rollovers OR School must collect: Written statement from tax filer indicating the amount of the distribution that was excluded because it was an IRS authorized rolloverORSigned and dated notation indicating “ROLLOVER” on IRS Tax Return Transcript
40Amended Tax ReturnAn individual who filed an amended return must submit:An IRS Tax Return Transcript, IRS Record of Account Transcript, or a Return Transcript for Taxpayer (Program Integrity Q&A DOC-Q10)ANDSigned copy of the Amended 1040X that was filed with the IRS
41Identity TheftA tax filer who is unable to request an IRS Tax Return Transcript because of IRS identity theft, calls a special IRS group atUpon verification of identity, the tax filer can request a paper copy of an alternative document unique to identity theft issues (Tax Return Data Base View - TRDBV)The TRDBV is an official transcript that can be submitted to the school to meet verification requirementsDCL – GEN-14-05
42Reporting V4 and V5 Tracking Results Beginning with the award year, aid administrators will be required to report Identity Verification Results for an applicant assigned to either the V4 or V5 Verification Tracking Group.Who To ReportStudent for whom school received an ISIR with a Verification Tracking Group of V4 or V5 AND for whom school requested verification documentationDO NOT include students the school selected for verification of identity or high school completion statusWhen To ReportMust be submitted no later than 60 days after the date the institution requested that the applicant provide the required documentation
44FAA Access UpdatesFAAs will be able to manually enter SSNs/Name ID/ Verification Results from a dropdown menu on this page.
45FAA Access Updates Dropdown options will be Verification completed in person, no issues foundVerification completed remotely, no issues foundVerification attempted, issues found with identityVerification attempted, issues found with HS completionNo response from applicant or unable to locate
46FAA Access UpdatesFAAs will be able to select the option to upload a flat file to report required resultsSelect
47Select file from database by browsing FAA Access UpdatesSelect file from database by browsing
48FAA Access UpdatesFAA will receive a confirmation page with the results submitted that can be printed.
52There are NO CHANGES to the verification groups for 2015-16!!!
532015-16 Verification Tracking Groups Verification Tracking FlagVerification Tracking GroupVerification DescriptionV1Standard VerificationRecord selected because conditions based on statistical analysis error-prone risk model were metV2Reserved for FSA Use OnlyN/AV3Child Support Paid VerificationRecord selected for Child Support Paid criteria onlyV4Custom Verification GroupRecord selected for Identity criteria and SNAP/Child Support PaidV5Aggregate Verification GroupRecord selected for Identity criteria, “Standard Verification” criteria and SNAP/Child Support PaidV6Household Resources Verification GroupRecord selected for Other untaxed income, “Standard Verification” and SNAP/Child Support Paid
542015-16 Verification ED will not publish verification worksheets Suggested text will be provided on the IFAP website once releasedAgain, must use exact language from Department for Statement of Educational PurposeDCL – GEN-14-11
55VerificationClarifications from the Department of Education regarding acceptable documentation forObtaining a Duplicate IRS Form W-2In instances where an applicant or parent is required to provide copies of IRS Form W-2, and the applicant or parent did not save their copy, the applicant or parent should request a replacement copy from the employer who issued the original W-2.
562015-16 Verification Other Untaxed Income and W-2s Tax Filers All applicants in the V6 tracking group must provide copies W-2’s for each source of employment in The IRS Form W-2 is used to verify whether there was any such income that should have been reported on the FAFSA or if it was reported correctly.Nontax FilersIf an institution questions if an applicant or parent has not, will not, and is not required to file a 2014 IRS income tax return, the institution must require the applicant to submit a “Verification of Nonfiling Letter” from the IRS indicating that the tax filer did not file a 2014 IRS income tax return.Must be dated on or after June 15, 2015
572014-15 Verification Resources Federal Register Notice, published June 13, 2013Dear Colleague Letter GEN-13-12Dear Colleague Letter GEN-13-16Dear Colleague Letter GEN-14-05
582014-15 Verification Resources Verification Suggested TextReporting Verification Results Using FAA Access to CPS OnlineApplication and Verification Guide
592015-16 Verification Resources Federal Register Notice, published June 25, 2014Dear Colleague Letter GEN-14-11