Federal Student Financial Aid: What If I Am Selected for Verification?

Many students that apply for Federal Student Financial Aid (FSFA) will be selected for a process called verification at some point in time. This is supposedly a random process conducted by the Department of Education and is simply used to verify the information that was supplied on the FAFSA. Because I deal with student financial aid on a daily basis, it is my professional opinion that it is really not so random of a process but is more of an automated process based on the students EFC (Estimated Family Contribution). I tend to see more students with a low EFC selected for verification that I do students with an EFC so high that they are disqualified for the Pell grant.

When you complete your FAFSA, you are required to include financial information from your federal taxes as well as the number of people in your household. The verification process is in place as a sort of checks-and-balance procedure to ensure you are being completely honest. The lower your EFC the more Pell you will qualify for and since Pell is a grant, it's "free money"; you never have to repay it unless you are over awarded of course. Because you are dealing with a federal grant, the Department of Education basically wants to make sure you aren't falsifying documents to get more "free money".

What do you need to do if you are selected for verification? First and foremost do not panic! You will be required to submit additional documentation based on the guidelines set forth by the Department of Education. An independent student will be required to complete what is called a verification worksheet. On this you will list everyone in your household that you listed on your FAFSA. In the case of a child not living in your home that you support more than 50% of the time, you would want to list them as well. You will be asked if you received any child support and if so you will need to list the amount. Finally there is the non tax filers section. If for whatever reason, you (or your spouse) did not file the previous years taxes then you will need to list your information in the non tax filers section. So for example if you are completing your documents for the 2008/2009 aid year, you will be required to provide a signed copy of your 2007 federal taxes and they must have a physical signature on them, not an e-signature; the Department of Education will not accept the e-signature.

For dependent students you, as well as your parents, will be required to complete this form. This form gathers information about the members of your parent's household that they are supporting more than 50% of the time; this is even if you do not reside with your parents. For the 2008/2009 aid you to be included are: your parents, yourself, any other children/step children in the home and any children who will be born between 07/01/08 and 06/30/09. You will also need to include other people only if they live with your parents and are supported by your parents more than 50% of the time and they will continue to receive that support from July1, 2008 through June 30, 2009. So in this case maybe your parents are taking care of a loved one; they should also be included. The amount of any child support received by your parents will need to be listed and then if you, the student, did not file taxes your information will need to be listed in the non tax filers section. If your parent(s) did not file taxes they will also have to list their information in the non tax filers section.

Being selected for verification is not the end of the world but it can seem like a big hassle. Making sure you are prepared is the best defense against the headaches that the Department of Educations verification process can cause.