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Students sometimes make errors when reporting application information; therefore procedures are in place for verifying the information on the Free Application for Federal Student Aid (FAFSA). Maintaining the integrity of the student aid programs and minimizing improper payments is a major objective of all partners in the financial aid process.
Applications may be selected for verification either randomly, by the federal Central Processing System (CPS), or by the postsecondary school. Following procedures established by federal regulation, the CPS annually selects 30% of total applicants.
The CPS prints an asterisk next to the Expected Family Contribution (EFC) on the Student Aid Report (SAR) or SAR Acknowledgement to identify students who have been selected for verification. If the student is selected for verification, a school’s financial aid administrator must check the information the student reported on the FAFSA, usually by requesting a copy of applicable signed federal income tax returns and a Verification Worksheet. In unusual circumstances, additional documents may also be necessary.
Required verification items include:
Adjusted Gross Income;
- U.S. Income Tax Paid;
- Number in Household Size;
- Number of Household Members Enrolled as a Student at Least Half-Time; and
- Untaxed Income and Benefits (i.e., social security benefits, child support, IRA/Keogh deductions, foreign income exclusion, earned income credit, interest on tax-free bonds and any other untaxed income sources).
Updating Information
Applicants selected for verification must update information as of the date of verification. Applicants not selected for verification cannot update FAFSA information concerning income or assets for changes occurring after the filing of the original application. The below items may be updated if the student is selected for verification and if the change is not based on the student’s marital status:
- a change in dependency status;
- a change in the number of family members in the household; and
- a change in the number of family members enrolled in postsecondary school.
A postsecondary school must complete verification before it exercises professional judgment to change the EFC of a student selected for verification. Any conflicting information that the school becomes aware of must also be resolved and verified.
The Application and Verification Guide in the Federal Student Aid Handbook provides more detailed information about verification.
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