1. 2016–17 Verification A NASFAA Authorized Event Presented by [Name of Presenter/Association] [Location] [Date], 2016

2. Lesson 1: Introduction to Verification

3. Direct Subsidized Loans
Introduction
Checking the accuracy of FAFSA information
Regulatory specifications
Applies to recipients of subsidized aid
Federal Pell Grant
FSEOG
FWS
Federal Perkins Loan
Direct Subsidized Loans

4. Central Processing System
Selection Process
Applications can be selected by:
Central Processing System
Institution OR

5. Institutional exclusion
Exclusions
Verification not required under certain circumstances
Entire application
Spousal data
Parental data
Certain data elements
Institutional exclusion

6. Verification Tracking Groups
Standard Verification Group
Custom Verification Group
Aggregate Verification Group
Household Resources Group

7. Verification Tracking Groups
Tax filer information
Nontax filer information
Household size
Number in college
SNAP, if reported
Child support paid, if reported V1

8. Verification Tracking Groups
SNAP, if reported
Child support paid, if reported
High school completion
Identity and Statement of Educational Purpose V4

9. Verification Tracking Groups
V1 tax filer and nontax filer information
High school completion
Identity and Statement of Educational Purpose V5

10. Verification Tracking Groups
V1 tax filer and nontax filer information
Certain other untaxed income V6

12. Documentation Requirements
IRS Data Retrieval Tool
Tax Return Transcript
Verification Worksheets
Signature requirements

13. Tax Filers

14. AGI Documentation Exceptions
Tax return filing extensions
Amended tax returns
IRS tax-related identity theft
Inability to obtain a Tax Return Transcript
Tax account information cannot be located
Foreign and U.S. territory tax returns

15. Tax Filers U.S. Income Tax Paid
Tax Return Transcript
1040 Transcript—Income Tax After Credits Per Computer minus Excess Advance Premium Tax Credit Repayment Amount
1040A Transcript—Tentative Tax Per Computer minus Total Credits Per Computer
1040EZ Transcript—Total Tax Liability TP Figures Per Computer minus Health Care: Individual Responsibility
1040
Line 56 minus Line 46
1040A
Line 28 minus Line 36
1040EZ
Line 10
FAFSA
Student Question 37
Parent Question 86

16. Nontax Filers—Income Earned from Work
Statement or verification worksheet; and
Form W-2 from each employer

17. Tax Filers—Income Earned from Work
Tax Return Transcript
1040 Transcript—Wages, Salaries, Tips, etc. + Business Income or Loss Sch. C Per Computer + Farm Income or Loss (Schedule F) Per Computer
1040A Transcript—Wages, Salaries, Tips, etc. + Business Income or Loss Sch. C Per Computer + Farm Income or Loss (Schedule F) Per Computer
1040EZ Transcript—Wages, Salaries, Tips, etc.
1040
Lines Schedule K-1, Box 14, Code A
Form W-2, Box 1
1040A
Line 7
1040EZ
Line 1
FAFSA
Student Questions 39 and 40
Parent Questions 88 and 89

18. Tax Filers—Untaxed Income and Benefits

19. Tax Filers—Untaxed Income and Benefits

20. Tax Filers—Untaxed Income and Benefits

21. Required Verification Data Items
Other untaxed income from FAFSA
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
Money received or paid on the student’s behalf
Resources or benefits not reported on FAFSA

23. Required Verification Data Items
Supplemental Nutrition Assistance Program (SNAP) benefits
Child support paid
Household size
Number in college
High school completion status
Identity/Statement of Educational Purpose

24. Other Application Information
Optional for school
Examples of data elements to verify:
Cash, saving, and checking accounts
Real estate and investment properties
Other forms of untaxed income

25. Special Tax Data Considerations
Tax extensions
Amended tax returns
Separating income on joint tax returns
IRS tax-related identity theft
Inability to obtain a tax return transcript
Government cannot locate tax account information
Foreign and U.S. Territory income

26. Verification Status Codes
Meaning
Comments V
Verified
Applicable to records selected by either the CPS or the institution. W
Without documentation
Student has been selected and institution has chosen to pay initial Federal Pell Grant disbursement without documentation. This code must be updated once verification is completed. S
Selected/ Not verified
Selected by CPS, but not verified because the application did not meet the school’s QA verification criteria, or the application met one of the verification exclusions.
Blank
Not verified
The application was not selected by the CPS or the institution; therefore, it was not verified. Includes QA institutions. Application was selected by the CPS after student ceased attending the institution and after all disbursements (including late disbursements) were made.

28. Lesson 2: Changing Applicant Data

29. Corrections Correct as Reported Required Optional Disburse grants
Employment may begin
Originate loans
Change in a single dollar item of $25 or more
Errors in nondollar items
School may choose to submit all corrections

31. Required Optional Updates Household size Number in college
Dependency status
Change in marital status

33. Professional Judgment Adjustments
Optional
Verification of specified-year data and resolution of conflicting information required

35. Lesson 3: Interim Disbursements, Time Frames, and Policies and Procedures

36. Interim Disbursements
Conditions
Prior to verification
After verification, but prior to receipt of SAR/ISIR

37. Federal Pell Grant, Federal Perkins Loan, FSEOG
Program Requirements
Federal Pell Grant, Federal Perkins Loan, FSEOG
One interim disbursement
FWS
Employ up to 60 consecutive days

38. Program Requirements TEACH Grant, IASG Direct Loan Program
Subsidized: originate, but not disburse
Unsubsidized and PLUS: originate and disburse
TEACH Grant, IASG
May disburse

39. Ineligible for Interim Disbursement
Considered to be an overpayment under certain conditions
Who is responsible to repay the overpayment?

41. Verification and the Award Cycle
Upon receipt of ISIR
Before making tentative award
After making tentative award, but before award confirmation
After student accepts award, but before disbursement
After interim disbursement, but before second disbursement (as applicable)

42. Verification Deadlines
Institutional deadline
Federal Pell Grant deadline
Campus-Based and Direct Loan deadlines

44. Verification Policies and Procedures
Selection
Procedures
How are students selected
Information Shared
Documentation requirements
Student responsibilities
Document Submission
Deadlines
Consequences for noncompliance
Post-Verification
Process to correct data
Outcome notification to student