Verification

Verification, once performed entirely by the school, is increasingly a shared effort by the school and the U.S. Department of Education (ED) to ensure that federal student aid funds are awarded and paid based on accurate family financial information. A student’s application for federal student aid (the FAFSA) may be chosen for verification by ED or by the school. The information that must be verified varies by applicant, as, effective for the 2012-13 award year, ED transitions to a targeted approach that specifies verification of only those items that appear most likely to be in error.

Related topics in this Index: Need Analysis; Expected Family Contribution (EFC)

Statutory Authority
- U.S. Code, Title 20—Education Chapter 28—Higher Education Resources and Student Assistance Subchapter IV—Student Assistance > Part G—General Provisions Relating to Student Assistance Programs § 1094 Program Participation Agreement [HEA § 487]
Regulations
- 34 CFR 668 Subpart E—Verification and Updating of Student Aid Application
ED References
See also Subtopics for more specific references.
NASFAA Publications and Articles
- NASFAA 2019-20 Tax Transcript Decoder
- NASFAA AskRegs Knowledgebase
  Search or browse the Knowledgebase for answers to regulatory and compliance questions submitted by financial aid administrators.
- NASFAA Compliance Engine
  The Compliance Engine is comprised of two modules: the Self-Evaluation Checklists which allows administrators to evaluate their programs in a centralized, shared online space, and the P&P Builder, a tool designed to assist institutions in the creation and maintenance of a policies and procedures manual. Along with an online space to update and maintain policies and procedures, the P&P Builder includes legislation and regulation associated with compliance with Title IV requirements.
- NASFAA U Authorized Events
  NASFAA U Authorized Events are a comprehensive set of instructional materials for teaching financial aid concepts to groups of individuals. Materials include a study guide, instructor guide and accompanying presentation slides.
- NASFAA U Online Courses
  NASFAA U Online Courses are collaborative learning sessions bring minds and ideas together despite distances. Online courses help you become more proficient, more knowledgeable, and more valuable to your organization, to interact with your colleagues through required discussions, and offer you the option to work towards earning a professional credential from NASFAA.
- NASFAA U Self-Study Guides
  NASFAA U Self-Study Guides are written for the independent learner. Each Self-Study Guide includes multiple lessons with a variety of exercises to reinforce each lesson. Individuals do independent study and take quizzes in a traditional paper format (not online). Then you can qualify to take a test and earn a professional credential.
Subtopics
- Adjusted gross income; U.S. income tax paid; income earned from work
  - General information
    
    668.57(a)
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Amended tax returns
    
    Electronic Announcement, 8/13/15
    
    Program Integrity Q&A, Verification, DOC-Q2/DOC-A2
    
    Program Integrity Q&A, Verification, VI-Q10/VI-A10
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Foreign income and foreign tax returns
    
    Program Integrity Q&A, Verification, DOC-Q28/DOC-A28
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 2
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Immigrants
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Income Verification Express Service (IVES)
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - IRS Data Retrieval Tool (IRS DRT)
    
    GEN-17-05
    
    Electronic Announcement, 9/5/17
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - IRS Documentation Requests, Uses, and Messaging
    
    Electronic Announcement, 2/23/17
  - IRS Tax filing extension
    
    Federal Register, 9/29/17, p. 45467
    
    Electronic Announcement, 1/9/19
    
    Program Integrity Q&A, Verification, DOC-Q16/DOC-A16
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - IRS Tax Return (when IRS Tax Return Transcript is unavailable)
    
    GEN-17-05
    
    Electronic Announcement, 1/9/19
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - IRS Tax Return Transcript Matrix
    
    Electronic Announcement, 11/26/19
  - IRS Tax Return Transcript Redacted Information
    
    Electronic Announcement, 10/4/18
  - IRS Tax Return Transcript, Tax Account Transcript, and Record of Account
    
    GEN-18-03
    
    Program Integrity Q&A, Verification, DOC-Q3/A3, DOC-Q10/A10
    
    Program Integrity Q&A, Verification, DS-Q3/DS-A3
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Joint return but no longer married
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Non tax filer
    
    Electronic Announcement, 1/9/19
    
    Electronic Announcement, 7/21/17
    
    Program Integrity Q&A, Verification, DOC-Q29/DOC-A29, DOC-Q30/DOC-A30
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - “Per computer” IRS corrections
    
    Electronic Announcement, 6/6/18 (IRS Tax Return Transcript Matrix)
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Verification of Nonfiling Letter (VNF)
    
    Electronic Announcement, 1/9/19
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Victims of identity theft
    
    GEN-15-11
    
    Program Integrity Q&A, Verification, DOC-Q23/DOC-A23
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
- Change in marital status
- Correction of application information as a result of verification
  - Making and processing changes
    
    Program Integrity Q&A, Verification, CHD-Q1/CHD-A1, CHD-Q2/CHD-A2
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
    
    2020-21 Electronic Data Exchange (EDE) Technical Reference, Section 2
    
    2019-20 Electronic Data Exchange (EDE) Technical Reference, Section 2
    
    2020-21 ISIR Guide, pp. 61 to 62
    
    2019-20 ISIR Guide, pp. 57 to 58
  - Recalculation of Pell Grant
    
    668.59(b)
  - Repackaging of subsidized aid other than Pell Grant
    
    668.59(c)
  - Required submission of corrections
    
    668.59(a)
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Tolerance
    
    668.59(a)(2)
    
    Federal Register, 10/29/10, p. 66911
    
    Program Integrity Q&A, Verification, CHD-Q1/CHD-A1
- Deadlines for submission of documentation
  See also Failure by student to provide documentation
- Disaster guidance
- Education credits
  - Electronic Announcement, 11/26/19
- Electronic and photocopied signatures
  - Program Integrity Q&A, Verification, DOC-Q12/DOC-A12
  - 2019-20 FSA Handbook, Vol. AVG, Ch. 4
- Exclusions from verification
  - Death of student
    
    668.54(b)(1)(i)
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Resolution of conflicting information
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Student no longer enrolled
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Student will not receive Title IV aid or will receive only unsubsidized aid
    
    668.54(b)(1)(ii), (iii)
    
    Electronic Announcement, 10/31/16
    
    Program Integrity Q&A, Verification, DOC-Q18/DOC-A18
    
    Program Integrity Q&A, Verification, VER-Q6/VER-A6, VER-Q7/VER-A7, VER-Q8/VER-A8
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Transfer student
    
    668.54(b)(1)(iv)
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
- Exclusions from verification: Parental information only
  - 668.54(b)(2)
  - 2019-20 FSA Handbook, Vol. AVG, Ch. 4
- Exclusions from verification: Spousal information only
  - 668.54(b)(3)
  - 2019-20 FSA Handbook, Vol. AVG, Ch. 4
- Failure by student to provide documentation
- Foreign schools
  - 668.51(c)
- High school completion status
  - General information
    
    Federal Register, 5/29/19, pp. 24118 to 24122
    
    GEN-15-11
    
    GEN-12-09
    
    Electronic Announcement, 7/23/19
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Ability to benefit alternative
    
    Electronic Announcement, 6/24/15
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Foreign high school diploma
    
    Program Integrity Q&A, Verification, DOC-Q19/DOC-A19
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Reporting requirement
    
    Electronic Announcement, 11/18/16
    
    Electronic Announcement, 8/19/16
    
    Electronic Announcement, 11/6/14
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
- Identity/statement of educational purpose
- Incentive compensation exclusion
  - GEN-11-05
- Interim disbursements
  - Allowable interim disbursements
    
    668.58(a)(2), (3)
    
    Electronic Announcement, 10/31/16
    
    Program Integrity Q&A, Verification, VER-Q11/VER-A11
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Prohibitions
    
    668.58(a)(1)
  - Recovery of (and liability for) interim disbursements
    
    668.58(b)
    
    668.61
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
- Items / information to be verified
  - Applicants selected by ED
    
    668.56
    
    Federal Register, 5/24/19, pp. 24118 to 24122
    
    Federal Register, 3/29/18, pp. 13266 to 13269
    
    GEN-19-02
    
    Program Integrity Q&A, Verification, DS-Q3/DS-A3
    
    Program Integrity Q&A, Verification, VI-Q1/VI-A1, VI-Q4/VI-A4, VI-Q10/VI-A10
  - Applicants selected by school
    
    Program Integrity Q&A, Verification, IS-Q2/IS-A2
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Auto Zero or Simplified Needs Test
    
    Program Integrity Q&A, Verification, VI-Q9/VI-A9
- Number of family members in household (household size)
  - 668.57(b)
  - 2019-20 FSA Handbook, Vol. AVG, Ch. 4
- Number of household members enrolled in eligible postsecondary institutions (number in college)
  - 668.57(c)
  - 2019-20 FSA Handbook, Vol. AVG, Ch. 4
- Policies and procedures required of institution
  - Communication with applicant about required documentation, deadlines, and consequences of failure to comply
    
    668.53(a)
    
    2019-20 FSA Handbook, Vol. 2, Ch. 6
  - Institutional processes and procedures
    
    668.53(b)
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
- Professional judgment
- Reporting and status codes
- Retirement account rollovers
  - 2019-20 FSA Handbook, Vol. AVG, Ch. 4
- Scope (Aid programs to which verification applies)
  - Aid programs to which verification applies
    
    668.51(a)
    
    668.52, Subsidized student financial assistance programs
  - Authority to require applicant’s documentation
    
    668.51(b)
    
    2020-21 FAFSA, Step Seven (English)
    
    2020-21 FAFSA, Step Seven (Spanish)
    
    2019-20 FAFSA, Step Seven (English)
    
    2019-20 FAFSA, Step Seven (Spanish)
  - Impact on unsubsidized aid
    
    668.54(b)(1)(iii)
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
- Selection for verification
  - 30% limitation
    
    Federal Register, 10/29/10, pp. 66833, 66904
  - Auto Zero EFC applicants
    
    Program Integrity Q&A, Verification, VI-Q9/VI-A9
  - Selection by ED
    
    General information
    
    668.54(a)(1)
    
    2020-21 ISIR Guide, pp. 22, 60
    
    2019-20 ISIR Guide, pp. 21, 56
    
    Acceptable Documentation for ED
    
    Also see Applicants selected by ED, IRS Tax Return (when IRS Tax Return Transcript is unavailable)
    
    Federal Register, 5/29/19, pp. 24118 to 24122
    
    Federal Register, 3/28/18, pp. 13266 to 13269
    
    GEN-19-02
    
    Electronic Announcement, 1/9/19
    
    Program Integrity Q&A, Verification, DS-Q3/DS-A3
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
    
    Failure to use IRS data retrieval when eligible to do so
    
    GEN-11-03
    
    Graduate students
    
    Program Integrity Q&A, Verification, VER-Q9/VER-A9, VER-Q10/VER-A10
    
    Professional judgment cases
    
    Program Integrity Q&A, Verification, VER-Q2/VER-A2
  - Selection by institution
    
    General information
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
    
    Acceptable Documentation
    
    Program Integrity Q&A, Verification, DOC-Q5/DOC-A5
    
    Additional applicants
    
    668.54(a)(2), (3)
    
    Program Integrity Q&A, Verification, IS-Q1/IS-A1
    
    Delaying disbursement
    
    Program Integrity Q&A, Verification, VER-Q4/VER-A4
  - Selection of subsequent application/transaction
    
    668.54(a)(4)
    
    668.55(b)(2)
    
    Federal Register, 10/29/10, p. 66905
    
    Electronic Announcement, 10/31/16
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 5
    
    2020-21 ISIR Guide, p. 33
    
    2019-20 ISIR Guide, p. 32
- Untaxed income (tax-exempt interest, IRA distributions and deductions, pensions)
- Updating of application information
  - Dependency status
    
    668.55(a)
    
    Program Integrity Q&A, Verification, UPD-Q2/ UPD-A2
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 5
  - Household size or number in college
    
    668.55(b)
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Making and processing changes
    
    Program Integrity Q&A, Verification, DOC-Q22/DOC-A22
    
    Program Integrity Q&A, Verification, UPD-Q2/ UPD-A2
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
    
    2020-21 Electronic Data Exchange (EDE) Technical Reference, Section 2
    
    2019-20 Electronic Data Exchange (EDE) Technical Reference, Section 2
    
    2020-21 ISIR Guide, p. 62
    
    2019-20 ISIR Guide, p. 58
  - Parent’s marital status
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
  - Student’s marital status
    
    668.55(c)
    
    Program Integrity Q&A, Verification, UPD-Q1/ UPD-A1; UPD-Q3/UPD-A3, UPD-Q4/UPD-A4
    
    2019-20 FSA Handbook, Vol. AVG, Ch. 4
- Verification tracking groups
- Worksheets/Suggested Text

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Verification

Statutory Authority

Regulations

ED References

NASFAA Publications and Articles

Subtopics

Adjusted gross income; U.S. income tax paid; income earned from work

General information

Amended tax returns

Foreign income and foreign tax returns

Immigrants

Income Verification Express Service (IVES)

IRS Data Retrieval Tool (IRS DRT)

IRS Documentation Requests, Uses, and Messaging

IRS Tax filing extension

IRS Tax Return (when IRS Tax Return Transcript is unavailable)

IRS Tax Return Transcript Matrix

IRS Tax Return Transcript Redacted Information

IRS Tax Return Transcript, Tax Account Transcript, and Record of Account

Joint return but no longer married

Non tax filer

“Per computer” IRS corrections

Verification of Nonfiling Letter (VNF)

Victims of identity theft

Change in marital status

Correction of application information as a result of verification

Making and processing changes

Recalculation of Pell Grant

Repackaging of subsidized aid other than Pell Grant

Required submission of corrections

Tolerance

Deadlines for submission of documentation

Disaster guidance

Education credits

Electronic and photocopied signatures

Exclusions from verification

Death of student

Resolution of conflicting information

Student no longer enrolled

Student will not receive Title IV aid or will receive only unsubsidized aid

Transfer student

Exclusions from verification: Parental information only

Exclusions from verification: Spousal information only

Failure by student to provide documentation

Foreign schools

High school completion status

General information

Ability to benefit alternative

Foreign high school diploma

Reporting requirement

Identity/statement of educational purpose

Incentive compensation exclusion

Interim disbursements

Allowable interim disbursements

Prohibitions

Recovery of (and liability for) interim disbursements

Items / information to be verified

Applicants selected by ED

Applicants selected by school

Auto Zero or Simplified Needs Test

Number of family members in household (household size)

Number of household members enrolled in eligible postsecondary institutions (number in college)

Policies and procedures required of institution

Communication with applicant about required documentation, deadlines, and consequences of failure to comply

Institutional processes and procedures

Professional judgment

Reporting and status codes

Retirement account rollovers

Scope (Aid programs to which verification applies)

Aid programs to which verification applies

Authority to require applicant’s documentation

Impact on unsubsidized aid

Selection for verification

30% limitation

Auto Zero EFC applicants

Selection by ED

General information

Acceptable Documentation for ED

Failure to use IRS data retrieval when eligible to do so