JB Pritzker, Governor, State of Illinois

Verification

2022-23 Verification Information
Implementation of ED’s High School Completion Status Removal from Verification
Changes to Verification Requirements Due to COVID-19
Overview
Required Verification Items
Required Documents
Suggested Text
Updating Information
Resources

2022-23 Verification Information

Implementation of ED's High School Completion Status Removal from Verification

The U.S. Department of Education (ED) issued Dear Colleague Letter (DCL) GEN-21-06 on September 1, 2021, announcing the removal of high school completion status as a verification item under the V4 and V5 tracking groups, starting with the 2022-23 Free Application for Federal Student Aid (FAFSA®) processing year. As a result, institutions are no longer required to obtain high school completion documentation to complete V4 or V5 verification. However, institutions remain obligated to evaluate the validity of a student’s high school diploma if there is reason to believe that the high school diploma is not valid or was not obtained from an entity that provides secondary school education (refer to Volume 1, Chapter 1 of the FSA Handbook for more information).

Changes to Verification Requirements Due to COVID-19

ED's DCL GEN-21-06 also references COVID-19 flexibilities and waivers relating to verification that were originally announced in a January 15, 2021 electronic announcement, which states that verification flexibilities explained in that and earlier electronic announcements are extended through the end of the first payment period that begins after the date that the COVID-19 national emergency is rescinded.

Published on May 18, 2022, DCL GEN-22-06 confirms that ED is continuing the waiver of certain verification requirements into the 2022-23 award year (i.e., verification requirements strictly focus on identity and fraud for the remainder of the 2022-2023 award year; all other verification requirements are waived). DCL GEN-22-06 also states that ED will continue to monitor and review the federal verification process for the 2023-24 award year and beyond to consider what adjustments may need to be made to verification long-term to ensure that it is robust and equitable, and takes into consideration the burden on students, families, and institutions of higher education.

Consistent with ED's continuing action and in keeping with the 2022-23 processing decision announced in a July 14, 2022 e-Message, ISAC is not requiring colleges to complete federal verification for students receiving ISAC program benefits for the 2022-23 award year. ISAC advises schools to follow ED guidance in regard to when verification must be completed. However, colleges are still required to confirm Illinois residency for all students receiving ISAC program benefits for which Illinois residency is a requirement.

Overview

Students sometimes make errors when reporting application information, therefore, procedures are in place for verifying the information on the FAFSA. Maintaining the integrity of the student aid programs and minimizing improper payments is a major objective of all partners in the financial aid process.

Applications may be selected for verification either randomly, by the Central Processing System (CPS), or by the postsecondary school. Schools are required to have written polices about the verification process at their school.

ED’s goal is for a customized approach to verification. Students who are selected for verification are placed in one of three tracking groups. The tracking group determines which FAFSA information must be verified. The FAFSA output document [Student Aid Report (SAR) or SAR Acknowledgement] will display one of the verification flags, and an asterisk is printed next to the expected family contribution (EFC), to identify students who have been selected for verification by the CPS. A comment in the Student section of the output document tells the applicant they will need to provide documentation to their school.

Refer to the FSA Handbook (Application and Verification Guide, Chapter 4), DCL GEN-21-06, and DCL GEN-22-06 for detailed information about the required policies and procedures, information to be verified, exclusions to verification, an explanation of acceptable documentation for each tracking group, and guidance regarding updating information and making disbursements.

Required Verification Items

Applicants selected for verification are placed in one of three tracking groups (V-1, V-4, or V-5). The tracking group determines which FAFSA information must be verified for the applicant. Among the items that must be verified when an application is selected for verification by the CPS are those listed below. Tracking Groups V-2, V-3 and V-6 are reserved by the Department of Education. Refer to the September 1, 2021 Federal Register, DCL GEN-21-06, DCL GEN-22-06, and the “Applications and Information to be Verified” and “Documentation” portions of the 2022-23 FSA Handbook for details regarding items to be verified and acceptable documentation in the 2022-23 academic year.

V-1 Standard Verification Group

Tax Filers

Adjusted Gross Income
U.S. Income Tax Paid
Untaxed Portions of Individual Retirement Account (IRA) Distributions
Untaxed Portions of Pensions
IRA Deductions and Payments
Tax Exempt Interest Income
Education Tax Credits

Nontax Filers
Income Earned from Work

Tax Filers and Nontax Filers
Number of Household Members
Number in College

V-4 Custom Verification Group

Identity/Statement of Educational Purpose (institutions must use the exact language as provided in Appendix A: 2022–2023 Suggested Verification Text of DCL GEN-21-06)

V-5 Aggregate Verification Group

Tax Filers

Adjusted Gross Income
U.S. Income Tax Paid
Untaxed Portions of Individual Retirement Account (IRA) Distributions
Untaxed Portions of Pensions
IRA Deductions and Payments
Tax Exempt Interest Income
Education Tax Credits

Nontax Filers
Income Earned from Work

Tax Filers and Nontax Filers
Number of Household Members
Number in College
Identity/Statement of Educational Purpose (institutions must use the exact language as provided in Appendix A: 2022–2023 Suggested Verification Text of DCL GEN-21-06)

Schools may select applicants for verification other than those selected by the CPS. A school is not required to verify any or all of the FAFSA information for applicants it selects for verification. A school may identify acceptable documentation for school-selected applicants in accordance with consistently applied school policies but they must use the documentation required by the Department of Education for applicants selected by the CPS. School-selected applications are considered selected for verification and, therefore, the same rules for CPS-selected applications apply regarding deadlines, tolerances and disbursements.

Required Documentation

Refer to the September 1, 2021 Federal Register for information about documentation that may be accepted for verification.

Suggested Text

ED provides suggested text for each of the required verification items. A school may use the suggestions or create their own worksheet and text to collect documentation. However, the exact language provided in Appendix A: 2022–2023 Suggested Verification Text of DCL GEN-21-06 is required for the Statement of Educational Purpose for applicants selected for Verification Groups V-4 and V-5.

Updating Information

Applicants selected for verification must update information as of the date the application was submitted. Applicants not selected for verification cannot update FAFSA information concerning income or assets for changes occurring after the filing of the original application.

  • All applicants must update dependency status and FAFSA information throughout the award year except when the update is caused by a change in the student’s marital status. (See the FSA Handbook for guidance on Professional Judgment.)
  • All applicants selected by the CPS for verification must update the household size and number in college to be correct as of the date of verification unless the change is due a change in the student’s marital status.
  • Financial aid administrators ONLY can make IRS-related changes to data submitted via IRS DRT.

Any conflicting information about which the school becomes aware must be resolved and verified. Schools must complete verification before exercising Professional Judgment to adjust any values that are used to calculate the EFC. Using Professional Judgment does not require the school to verify applications that have not been selected.

Resources

The FSA Partner Connect – Knowledge Center website includes links to information and guidance related to the administration and processing of Title IV programs. The following verification-related links are just a few resources available at the Knowledge Center. Users can filter electronic announcements and Dear Colleague Letters by calendar year.