Lesson 1: Intro to Verification

Question 1

What is verification?

Answer 1

Process used by the school to check the accuracy of the information the student, and maybe parent, provided when applying for Title IV aid.

Question 2

How is information verified?

Answer 2

By obtaining documentation, including in some cases, a signed statement or worksheet attesting to the accuracy of the information

Question 3

Applications can be selected for verification in one of two ways:

Answer 3

1. By CPS based on predetermined criteria or random selection.
2. By the school, based on policies.

Question 4

How do you know if a student is chosen for verification?

Answer 4

The ISIR will have a Verification Flag set to “Y” in the FAA Information section.

The SAR will have an asterisk near the EFC in the upper right hand side of the first page.

Question 5

What are the three verification tracking groups?

Answer 5

Standard Verification Tracking Group (V1)
Custom Verification Tracking Group (V4)
Aggregate Verification Tracking Group (V5)

Question 6

Standard Verification Tracking Group (V1)

Answer 6

Tax filers must verify:

1. Adjusted gross income (AGI)
2. U.S. income tax paid
3. Untaxed portions of Individual Retirement Account (IRA) distribuations
4. Untaxed portions of pensions
5. IRA deductions and payments
6. Tax-exempt interest income
7. Education tax credits
8. Household size
9. Number in college

Non-tax filers must verify:

1. Income earned from work
2. Household size
3. Number in college

Question 7

Custom Verification Tracking Group (V4)

Answer 7

All applicants in this group must verify:

1. High school completion status
2. Identity and Statement of Educational Purpose

Question 8

Aggregate Verification Tracking Group (V5)

Answer 8

All applicants in this group must verify:

1. V1 group items based on tax filer or nontax filer status
2. High school completion status
3. Identity and Statement of Educational Purpose

Question 9

What documents are transferred using the IRS Direct Retrieval Tool (DRT)?

Answer 9

1040
1040A
1040EZ

Question 10

What document must an applicant turn in if they can’t/don’t use the IRS DRT?

Answer 10

Applicants must submit a Tax Return Transcript (TRT) to complete verification

Question 11

What are three acceptable alternatives to the TRT?

Answer 11

1. IRS Record of Account Transcript
2. Return Transcript for Taxpayer (RTFTP)
3. Tax Return DataBase View (TRDBV) transcript