verification 2012 new aid officer workshop consuela mitchell director of student financial aid...
TRANSCRIPT
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Verification 2012 New Aid Officer Workshop
Consuela MitchellDirector of Student Financial Aid Services
Tarrant County College-NE Campus
2012-2013 Application & Verification Guide (AVG)Chapter 4 “Verification, Updates, and Corrections”
http://ifap.ed.gov/fsahandbook/attachments/1213AVGCh4.pdf
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Verification Topics
1. Quality Assurance Program2. Policies and procedures3. Whose application must be verified4. Verification requirements5. Acceptable documentation6. Data element corrections-vs-updates7. Interim disbursements8. Verification time frames9. Changes beyond 2012-201310. Available resources
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Verification
Process of verifying accuracy of FAFSA data
Regulations define: Whose application must be verified (AVG-76)
Data elements to be verified (AVG-76)
Documentation used to verify data elements (AVG-81)
Regardless of verification selection, must always resolve discrepancies and conflicting information
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Quality Assurance Program
Participation voluntary
ED provides guidelines, tools, and incentives for participation
Participating schools exempt from prescribed verification requirements
School sets verification parameters
School must reassess and self-correct verification process on ongoing basis
Every other year – Random Sample must be completed
Quality Assurance Website: http://ifap.ed.gov/qahome/Default.html
(AVG-84)
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Verification Policies and Procedures
Your school must have written P&P’s about:
Time period students must submit verification
documentation,
Consequences for failing to submit documents in time,
Method school uses to notify students if their EFC and Title IV
aid amounts change,
Procedures school or students will follow to correct FAFSA
data,
Procedure school will follow to refer a student to the Office of
Inspector General (AVG-76)
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Whose Application Must Be Verified?
Applicants selected by Central Processing System (CPS)
Applicants selected by institution
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Programs to Which Verification Applies
Subsidized student financial assistance programs Federal Pell Grant Campus-based programs Subsidized Direct Loan program
*excludes TEACH Grant, Direct Unsubsidized Loan, &
Direct PLUS Loan*
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Institutionally-Selected Applications
Institution can select additional applications not selected by CPS
Selection may be based on such data elements as: Estimated tax figures Low family income levels Large household size or number in
college Completion of certain FAFSA data
elements Other institutional criteria
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Verification Exclusions
Certain types of applicants and data elements exempt from verification
Reason for verification exclusion should be documented in student’s file
Except in the case of student’s death, none of the exclusions excuse school from requirement to resolve conflicting information
(AVG-77)
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Verification Exclusions
Death of student
Not an aid recipient
Only eligible for unsubsidized student aid
Applicant verified by another school
Must get letter from school which completed verification that includes transaction # of valid ISIR
Post enrollment
Few other exclusions (AVG-77-78)
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Required Verification Data Elements
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Acceptable Documentation (AVG-89)
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Number in Household & Number in College
Statement or verification worksheet listing each household member’s: Name Age Relationship to applicant Postsecondary school (if any) attending at least
half-time in an eligible college If institution doubts statement, it should obtain
statement from each postsecondary institution listed by applicant
(AVG -80-81)
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Child Support PAID
If ISIR indicated student or parent paid child support in 2011
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Child Support PAID Documentation
Request additional documentation if information provided appears inaccurateCopy of separation agreement or divorce
decree Signed statement from parent providing
support Copies of canceled child support checks or money order receipts
(AVG-82)
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SNAP benefits (food stamps)
If ISIR indicates someone in parents’ or student’s HH received SNAP benefits in 2010 or 2011, student must provide signed statement indicating receipt of benefit
(AVG-82)
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Tolerance Option
$25 tolerance for any dollar item
No tolerance to non-dollar items like # in HH & # in college
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Tax Filing Extensions
Collect W-2’s and one of following:
IRS Form 4868; or
Copy of IRS approval of extension beyond 4-month extension
May collect and review tax return transcript when filed
(AVG-79)
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Verification Corrections
For students not selected for verification, school or student must correct and submit for processing any errors reported on the original FAFSA that would change the EFC or that determine the students’ eligibility for aid.
(AVG 84)
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Verification Updates
FAFSA considered “snapshot” of family’s financial situation as of date application was submitted
After this date, only following items can be updated:
Dependency status throughout the award year except when the update is caused by a change in the student’s marital status
Household size & # in college to be correct as of date of verification unless change is due to change in the student’s marital status
(AVG-82)
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Verification Updates
Number in Household and Number in College
If selected, data must be accurate as of verification
If not selected, Cannot update for changes occurring after
original application filed School not required to monitor data element
change
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Verification Updates
Generally, cannot update change in student’s marital status
Must update household size if dependent student’s parent remarries after application, before verification
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Professional Judgment
You must complete verification for a selected student before you exercise professional judgment to adjust any values that are used to calculate the EFC.
But making a PJ adjustment does not require you to verify an application that isn’t selected.
(AVG-76)
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Interim Disbursements
In the absence of conflicting information or reason to believe information is inaccurate, institutions have the following disbursement options when verification still incomplete (school liable for overpayment): Federal Pell Grant and campus-based programs:
Withhold payment Make 1 disbursement for 1st payment period Employ applicant up to 60 days under FWS
(AVG-84)
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Interim Disbursements
Direct Subsidized Loans:
Refuse to certify or originate loan; or
Certify or originate loan, but not disburse/deliver loan proceeds
(AVG-84)
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Verification Time Frames
Verification Deadlines Campus-based and Direct Loans:
Institutionally-established deadline Federal Pell Grant:
Institutionally-established deadline Institution must have verification
documents and valid SAR/ISIR by earlier of 120 days after last day of enrollment or deadline published annually by ED in Federal Register (expected to be September 27, 2013)
(AVG-89)
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Verification Beyond 2012-13
Several changes have been made. Specific data elements will be targeted, rather than requiring the same data to be verified for all applicants.
Additional data elements beyond the five that have been historically targeted may be added in future years. These may include whether families have qualified for means tested benefits or certain categories of financial independence.
The Secretary will publish a list each year of the data elements that will be included in the verification process 4-6 months prior to the start of the application processing cycle.
Source: Final Federal Register October 29, 2010 Regulations: 668.51.61
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Verification Beyond 2012-2013
The results of verification & PJ changes cannot be submitted on the same day.
The changes impose new requirements for the recovery of Title IV funds if a school opts to use interim disbursements.
Conflicting documentation -- regardless of verification -- must still be resolved.
Source: Final Federal Register October 29, 2010 Regulations: 668.51.61
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Available Resources
Federal Student Aid Handbook Application and Verification Guidehttp://ifap.ed.gov/fsahandbook/attachments/1213AVGCh4.pdf
Institutional Policies and Procedures
IRS Publication 17 found at http://www.irs.gov/pub/irs-pdf/p17.pdf