"Even in the best of circumstances, applying for college financial aid can be a difficult task. But many students find themselves confronted with an additional challenge—they are asked to submit verification documents to prove that they qualify for that financial aid money," according to Consumer Reports.

"It might seem like a lot to ask of anyone who has already filled out the Free Application for Federal Student Aid (FAFSA)—a form with more than 100 questions about your family's finances and demographics. The FAFSA is required for federal loans and grants, as well as aid awarded by states, colleges, and some scholarship programs.

Still, 1 out of 3 FAFSA applications are selected each year for verification, an audit-like process to prove the information you provided is correct. You have to fill out more forms and submit additional documentation to each school where you apply. The school conducts the verification to validate that the data on your FAFSA, which is used to determine your financial aid offer, is accurate.

Faced with those stiffer requirements, a growing number of students are failing to complete the verification process, which means they are losing out on financial aid they could have received, a new study finds. Many others may lose out on awards due to the lengthy vetting process. Here's what to know about the FAFSA verification and how to minimize problems.
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Among those picked for verification, 25 percent dropped out of finishing the paperwork needed to get aid in the 2016-2017 academic year, up from 13 percent in 2012-2013.

Even if you complete the verification paperwork, the additional auditing time can be costly. For students, verification delays make it more difficult to compare offers and figure out which schools are a good financial fit.

'You won’t know what it will really cost you to go to a school until your financial aid package is completed and verified,' says Karen McCarthy, director of policy analysis at the National Association of Student Financial Aid Administrators, a nonprofit that focuses on student financial aid legislation and trains financial aid administrators."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 2/7/2019