Fafsa V1 Verification Form

During the review, the college`s grant administrator will ask the applicant to provide copies of documents, such as tax returns, W-2 returns, and Forms 1099, to verify the data submitted on the Free Federal Student Aid Application (FSAAP). In the case of a targeted audit, the FEDERAL PROCESSOR uses a risk model to identify FAFSA data elements that are prone to errors that appear abnormal or inconsistent. Only FAFSA data elements marked by the federal subcontractor are subject to review. The Federal Processor will likely report fewer than five data elements for most applicants, but some may have reported more than five data elements. Most colleges that have previously verified only 30% of their students` FASAPs will end up looking at more FAFSA but fewer overall data elements. If an applicant uses the IRS Data Recovery Tool to transfer unchanged federal tax return data to FAFSA, the unchanged data elements are not subject to review. As a result, applicants who use the IRS Data Recovery Tool are less likely to be selected for review. College and university financial aid administrators strongly encourage students to use the IRS data recovery tool. Typically, more than three million potential Pell Grant recipients are selected for review each year.

Unfortunately, due to the challenges they face in obtaining the required documents, some students never complete the exam and therefore do not receive the financial support they need to register. A targeted audit for the 2021-2022 FAFSA cycle will make it easier for millions of low-income students to access government financial aid. It will also reduce some of the burden on grant managers and allow them to devote their time and resources to managing emergency funds, entering and higher education for students, including updating FAFSA information for students who have lost their jobs due to the pandemic, and helping students learn about and access emergency financial assistance. provided under the Emergency Relief Fund for Higher Education. Audit is an administrative process in which the Department requires a subset of applicants for federal student assistance eligible for Pell grants to produce additional documents, such as transcripts, to verify their income and other information reported on the Free Application form for Federal Student Assistance (FAFSA). Candidates who are not eligible for Pell will not be selected for income verification. As a result, the verification process places a disproportionate burden on low-income students and students of colour. The process can be extremely difficult for students, especially because at least 20% of Pell-eligible applicants are exempt from tax returns due to their low income level. This prevents them from using the automated data recovery tool to easily import verified irs income data into their FAFSA form, and can lead to difficulties in obtaining the documentation needed to prove their income. The verification is designed to improve the accuracy of the information submitted to FAFSA. It is not intended to function as a forensic audit. However, the college`s grants office cannot process applications for professional judgment or provide federal student assistance until the verification process is complete.

Students selected for verification must complete a verification form with other types of documents requested. There are different types of verification (V1, V5). Each type of verification has different requirements depending on the individual situations of the students. Students are selected for only one type of verification (V1, V5) and therefore only need to fill out a corresponding verification worksheet. „This year has been exceptionally challenging,“ said Richard Cordray, Chief Operating Officer of Federal Student Aid (FSA). „We need to make sure students have the easiest way to get the financial support they need to enroll in university and continue their path to a degree. Targeted verification focused on identity theft and fraud in this cycle of assistance allows us to meet the immediate needs of students, continue to protect the integrity of the federal pell Grant program, and remove barriers to entry for underserved students. We will continue to evaluate improvements that can be made over the long term to make the verification process fairer while preventing fraud. The data elements selected for the review may depend, among other things, on the applicant`s dependency status, whether or not the applicant or his or her parents file federal tax returns, and whether the applicant is eligible or not. The U.S. Department of Education has data from last year`s FASAs on data elements that were modified during the review, and can use that data to create a sophisticated model to predict situations in which certain data elements are likely to change during the review. Grant managers have the right to request any documentation they deem necessary to complete the review.

If the family refuses to provide these documents, the college is prohibited from paying federal student aid to the student. The set of data elements that can be reviewed has been significantly expanded and can change from year to year. .