Blog | Min Read 2

FAFSA Verification – What It Is, How to Handle It, and Why Parents Shouldn’t Freak Out

When applying for financial aid, your clients are submitting a Free Application for Federal Student Aid (FAFSA) each year. In any given year, some filings are selected for FAFSA verification.

Verification is the process of confirming the information the student or the parents provided on the FAFSA, similar to an audit on your federal taxes. The FAFSA is managed by the US Department of Education, and sometimes they will be the ones who select some FAFSAs (sometimes randomly) each year to be verified. Sometimes, the colleges themselves will select a FAFSA to be verified.

An important thing to remember is that your client’s student will not receive any financial aid until the verification process has been completed. The financial aid office will be the ones contacting the student, and they will receive all the necessary supporting documents.

What documents will your client need to provide?

It depends on their personal situation, but in general, possible documents will need include:

  • Verification worksheets provided by their college
  • Income tax transcript – a line-by-line accounting of a tax return including applicable schedules provided by the IRS
    Federal tax return – the original documents filed like 1040, 1040A, or 1040EZ
  • Other specific documents to confirm numbers on the FAFSA like proof of a sibling’s college registration or W-2s or 1099 forms
  • Signed copy of any amended tax return 1040X if applicable

Tips to help your clients keep their sanity

They need to pay attention and respond quickly. Students need to be vigilant in checking their emails and reviewing their Student Aid Report (SAR). The information will be coming to them even if the parents filled out the form. If a verification request is made, students can’t simply say they didn’t see the email. Colleges will not accept those kinds of excuses. Also, if a student delays in responding, the financial aid may be given to someone else.

Income tax transcripts can be obtained from the IRS by either immediate download from the website or sent to your client by mail or fax. We recommend visiting the website and click “Get a Tax Transcript” and downloading the transcript there for fastest turnaround.

If your client decides not to provide the requested documentation, be aware the financial aid offer will be withdrawn.

If your client did not file a federal tax return, you may be asked to verify that a tax filing was not required. The financial aid office will need a signed statement from the student or parent saying they were not required to file a federal tax return. A client must include in that statement a list of all income and employers during the period in question as well as any W-2 forms.

Remember to remind your client that they haven’t done anything wrong if they are selected for FAFSA verification. Some verifications are chosen at random. Others are just trying to clear up any inconsistencies. Some small colleges even verify 100% of financial aid applicants. Verification is intended to clear up the accuracy of the information submitted by your client.

Don’t worry. Although 1 in 4 FAFSAs may be selected for verification, the Expected Family Contribution is rarely changed. If it does change, have your client talk to the college’s financial aid office to find out about the next steps.

Don't Just Take Our Word For It

Sign Up for a Free Demo

Related Articles

The student debt clock for 2020 just keeps on ticking. Americans today have over 1.64 trillion dollars in student loan debt, affecting nearly 45 million borrowers. Students today are carrying...
Today we have a guest post from our friend Lauren Straley at Perfectly Planned Content on how to make your blog posts more exciting. Are you one of those people...
When people talk about college expenses, they are often referring to rising tuition costs. While this is by far the biggest ticket item, it is far from the only reason...

Changing the Way America Shops for College

Newsletter Sign Up
We’re empowering advisors with the right tools they need to have success in the college funding space.
Copyright © 2021 · College Aid Pro