"Every year millions of students undergo a complex audit after they submit their Free Application For Federal Student Aid—the application form for most college financial aid. This process takes students and colleges a great deal of time, and in some cases, as research from the National College Access Network shows, it can lead to students never attending college at all," Forbes reports.

... "NASFAA’s prior research shows that most students selected for verification see no change in their financial aid. Still, they, their family, and their financial aid office will have spent countless hours gathering documents, ensuring they are accurate, and then having them reviewed by a financial aid counselor—often, by multiple financial aid counselors, since each college the student is admitted to has to review the information."

... "To help address some of the administrative hassle, NASFAA has also called for the Department to accept electronic signatures on documents for the students who are selected for the process—as of now, verification documents must include a 'wet' signature. This update would make it easier for students to respond to their audit in a timely manner."

... "It seems likely that selecting fewer students for verification proves more effective in reducing the number of students awarded incorrect financial aid. Research from NASFAA suggests that reducing verifications, and making the selections more targeted is more effective than verifying larger numbers of students. In 2019 the Department chose to verify 15% fewer students than the prior year, a reduction of 400,000 students having to go through the verification process. In return, total improper payments decreased by $24 million compared to the preceding year."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 12/30/2023