Explanation of Verification

Verification is the process of checking the accuracy of information submitted by applicants when they apply for financial aid. Students selected by the Secretary of the U.S. Department of Education, will be required to verify the accuracy of family financial information and other data before any Title IV funds are disbursed.

Selection of Financial Aid Applications to Be Verified

If a Pell Grant application is selected by the Central Processing System (CPS) for verification, an asterisk will appear by the SAI, and comments will appear on part one of the FAFSA SUBMISSION SUMMARY and page one of the ISIR addressing the verification requirements. Even though schools have the authority to verify any applicant, SWTC only verifies those applicants who are chosen by the federal processor or those who have conflicting information comments. It is the policy of SWIC to verity all CPS selected applicants and all students who have conflicting information. Students who are selected for verification by the processor or by the Financial Aid Office in cases of conflicting information must submit supporting documentation which may include, but is not limited to:

• Proof of all income reported on the FAFSA (i.e. copy of federal income tax transcripts)

• Non-filers must provide a W-2 form for each source of employment income in addition to a signed statement giving the sources and amounts of all income earned from work not on W-2's and certifying that the person has not filed and is not required to file a tax return (replacement W-2's can be requested from the employer who issued the original)

• Non-filers must also provide verification of non-filing from the IRS

• Completed and appropriately signed Verification Worksheet

• High School Completion, Identity, and Statement of Educational Purpose

• Number of Household Members, Number in College (SWTC is considered college for verification)

Financial Aid Disbursements Prior to Verification

SWTC withholds disbursement of any Title IV Federal Financial Aid until a student has completed the verification process. Although the school has the option of processing one Pell payment without verifying the application, SWTC does not take that option due to the risk of financial liability.

Verification Deadline

Failure to comply with verification requirements may result in forfeiture of aid. If a student does not complete verification by June 30t of the current academic award year in which he was chosen for verification, then the student forfeits his Pell for that award year.

Items to Be Verified Acceptable Documentation

The Financial Aid Coordinator collects appropriate documentation from the applicant based on the guidelines published in The Federal Student Aid Handbook. Items that generally must be verified by comparing the data items on the FAFSA SUBMISSION SUMMARY/ISIR with identical data items on the IRS tax return transcript and/or other primary documentation are listed below. The Financial Aid Coordinator uses the verification tracking flag code on the ISIR to determine what verification worksheet to use for each student chosen.

Number of Household Members

Acceptable documentation is the appropriate Verification Worksheet completed and signed by student and/or parent.

Number Enrolled in College

Acceptable documentation is an appropriate Verification Worksheet completed and signed by student and/or parent. If there is reason to doubt the information, the schools listed may be contacted to confirm enrollment. The student should always be included in the number enrolled in college. Others can be included only if they are counted in the household size and will be attending a postsecondary educational institution at least half-time (6 credit hours per semester for at least one term or 15 clock hours per week for one term) in the current award year. These individuals must also be working toward a degree or certificate leading to a recognized educational credential at a Title IV eligible school. Dependent students must exclude parents as number enrolled in college.

Adjusted Gross Income (tax filers)

Acceptable documentation for independent students (and spouse) is a copy of the student's federal income tax return, IRS tax return transcript and W2's for the base year; for dependent students, a copy of parents and student's federal income tax return, IRS tax return transcript, along with W2's for the base year is acceptable documentation. Students and student's parents who have successfully use the IRS Data Retrieval Tool on the FAFSA are considered verified from their IRS information that has been transferred from the IRS into the FAFSA.

Income Earned from Work (non-filers)

Acceptable documentation for non-filers is a signed statement, the appropriate Verification Worksheet certifying their non-filer status listing all the sources and amounts of income earned from work. In addition to such a statement, the person should provide W-2 forms for all their income for the base year. Nonfilers are also required to provide IRS documents that clearly indicate that the IRS does not have a tax return on file for the tax year. Acceptable documents include a "Verification of Non-Filing Letter" from the IRS or an IRS Tax Return Transcript that indicates "no record of return filed" or "no transcript on file".

U.S. Income Tax Paid (tax filers)

Acceptable documentation for independent students is a copy of the student's federal income tax return transcript along with W2's for the base year; for dependent students, a copy of parents and student's federal income tax return transcript along with W2's for the base year is needed. Students and student's parents who have successfully used the IRS Data Retrieval Tool on the FAFSA are considered verified from their IRS information that has been transferred from the IRS into the FAFSA.

Education Tax Credits (tax filers)

Acceptable documentation is the federal tax transcript.

IRA/Keogh Deductions (tax filers)

Acceptable documentation is the federal tax transcript.

Foreign Income Exclusion (tax filers)

Acceptable documentation is the federal tax transcript.

Interest on Tax-Free Bonds (tax filers)

Acceptable documentation is the federal tax transcript.

Untaxed Income (tax filers)

Acceptable documentation is the federal tax transcript.

High School Completion Status

Acceptable documentation is a copy of a high school diploma, High School Equivalency Diploma (GED®, HiSett®, or TASC®), home school equivalency, or a copy of the applicant's final high school transcript.

Identity/Statement of Educational Purpose

Acceptable documentation is the appropriate Verification Worksheet completed and signed in person by the student presenting an original government issued ID (i.e. driver’s license).

Location of Information On IRS Forms

Some information needed for verification can be found on the tax return transcript or on the tax return on the lines listed in the following table:

Exemptions from Financial Aid Verification

A selected application may be exempt from some or all of the verification requirements due to unusual circumstances. Except in the case of the student’s death, however, none of these exemptions excuse the school from the requirement to resolve conflicting information.

Verification Procedures

When the Financial Aid Coordinator has received all necessary FAFSA Submission Summary verification documents, she compares them to information originally reported on the application and the student’s FAFSA SUBMISSION SUMMARY/ISIR. If no corrections need to be made and there are no outstanding issues, aid may be awarded. If any adjustments need to be made the Financial Aid Coordinator or the student will correct or update the information. If any adjustments result in a change to the student’s SAI and/or Title IV aid amount, the student will be notified immediately by letter, by phone, or in person. Aid will be disbursed when a new ISIR resolving the issues is received. SWTC must also have on file the final and valid ISIR showing the official SAI.

Correcting Errors

For students who are selected for verification, changes that result to any non-dollar item and to any dollar item of $25 or more to the student information, must be reprocessed. The Financial Aid Coordinator may submit the corrections electronically through EDExpress with the student’s permission or the student may correct the FAFSA information online using his/her FSA ID.

Submitting Corrections

If the Financial Aid Coordinator is submitting corrections, all corrections must have documentation signed by both the student and parent. This can be signatures on Part 2 of the FAFSA SUBMISSION SUMMARY, a signed copy of the correction or update, or a signed verification document. When the reprocessed FAFSA SUBMISSION SUMMARY/ISIR is received, it is reviewed. If the FAFSA SUBMISSION SUMMARY/ISIR is now accurate, the verification process is complete all verification documents are filed in the student’s financial aid file folder.

Verification Status Codes

A Verification Status Code of “V” – Verified indicates the Financial Aid Coordinator has completed verification and all information is correct.

A Verification Code of “W” – Without Documentation indicates that verification is required, but the verification process is not completed and a first disbursement has been made. SWTC requires verification to be completed prior to any disbursement. Therefore, the status code “W” is never used.

A Verification Status Code of “Blank” – A blank space indicates that the FAFSA SUBMISSION SUMMARY/ISIR was not selected for verification by CPS or SWTC.

Unusual Enrollment History (UEH) Flag

The UEH flag with a “C” Code on the ISIR indicates that the student has had an unusual enrollment history with regards to the receipt of Title IV funds. The school is required to review the student’s academic records to determine if the student received academic credit at the schools that the student attended during the previous four award years using information from the National Student Loan Database System (NSLDS) as well as academic transcripts that the student provides from previously attended schools. Written documentation from the student, counselor, and third parties will be required to explain any discrepancies.

Verification of Other Information

The FAFSA SUBMISSION SUMMARY/ISIR will often have comments requiring the Financial Aid Coordinator to verify specific items. For example: Citizenship status must sometimes be verified.

Conflicting Information That Cannot Be Resolved
If the school and student cannot resolve conflicts that may occur regarding verification, the case will be referred to the U.S. Department of Education, Student Validation Branch. Cases of suspected fraud will be referred to the Regional Office of the Inspector General if they cannot be resolved locally. Based on verification completion, the grant is determined according to the guidelines set by the U.S. Department of Education. No financial aid disbursements will be made until verification is complete.