What is FAFSA Verification?

November 6, 2019

You finally submitted the FAFSA (Free Application for Federal Student Aid). You think everything is going smoothly until you receive notice (via your Student Aid Report) that you have been selected for FAFSA verification. What does this mean? What should you do?

FAFSA Verification is a process that the U.S. Department of Education uses to verify certain information on the FAFSA is accurate. Sometimes these selections are made by the U.S. Department of Education, and sometimes they are made by the college or university that the FAFSA was submitted to. In most cases, only a portion of students are selected for FAFSA verification, however some schools verify 100% of students to ensure all students are verified.

Why was I chosen for FAFSA verification?

So, why did you get chosen for verification? It depends. There are several possibilities for being selected for FAFSA verification. Keep in mind that more possibilities exist, but the following are the main reasons for being selected:

Random selection

In many cases, you were just selected randomly or the school you submitted the FAFSA to has protocol for verifying its students.

The submitted FAFSA has incomplete data

If you didn’t answer certain questions or provide certain information on the FAFSA, you may be subject to having your application verified.

The submitted FAFSA has inaccurate or contradictory information

If the information that you listed on the FAFSA doesn’t make complete sense, such as having contradictions or having inaccurate information, you may be subject to having your application verified.

The FAFSA application has estimated information

Often times, people make estimates for things like income and moving dates. If the information provided as estimates doesn’t seem accurate to the Department of Education, your application may be subject to verification.

What needs to be done after the selection?

Once you’ve been informed that you’ve been selected for FAFSA verification, the first thing you should do is check your Student Aid Report to see if you have a message from the Department of Education. If you have any questions, contact your Financial Aid Office. Your Financial Aid Office will likely ask you to submit certain documents as part of the FAFSA verification process. You should submit these documents in a timely manner. These documents may include:

Verification Worksheet
IRS Tax Return Transcript
Marriage Certificate
Social Security Card
Alien Registration Card
Other information/documentation

Keep in mind that these documents will depend on your specific circumstances and that not everyone is required to submit the same documents.

What happens if there are discrepancies in the application?

Once you’ve submitted your documents, your Financial Aid Office will compare the information to that of your Student Aid Report. Corrections will be made if any errors or discrepancies are found. If the errors or discrepancies have an impact on the amount of financial aid you can receive, you will then be given a revised award notification showing the difference.

If you are selected for FAFSA verification, you need to return the information and requested documentation as soon as possible. Processing usually takes two to three weeks, but it can take longer during the peak season. Because verification must be completed in advance of disbursing any money from any financial aid program, it is vital to send complete and correct information as quickly as possible. Above all else, don’t be upset because you were selected for verification. This is a process that is required by the federal government. The Financial Aid Office may even discover errors in your report that could actually increase your eligibility for more aid.

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FAFSA

When it comes to looking for financial aid for college, the FAFSA is a great place to start. The Free Application for Federal Student Aid has no income cutoff for eligibility, so your child could still receive some need-based aid from the FAFSA, especially if he or she plans on enrolling at a higher-cost school. The FAFSA opens October 1 every year, and you can apply as early as the year prior to your child’s first day of college. The earlier you apply, the more likely your child is to receive financial aid.

Scholarships

Researching and applying for scholarships has continually proven itself worthy of the effort. Many scholarships are merit-based instead of need-based, so your child may be eligible for many different scholarships depending on the qualifications. Start by looking for local scholarships – many locally-owned businesses and organizations offer scholarships for graduating high school students. If your child visits the school guidance office, they may have some applications on file. You or your spouse could also ask your employer if they offer any type of scholarships or financial aid for employees’ children. After exhausting local options, your child may want to research national opportunities. A quick web search could reveal countless free scholarships – Niche, Fastweb, and eCampusTours are a good place to start. Finally, many colleges offer merit-based scholarships and endowment scholarships. Make sure your child looks for institutional scholarships at the school he or she plans to attend. You may discover that if your child joins a club or raises a standardized test score by a couple of points, he or she could receive thousands more dollars of financial aid.

Tuition Discounts

If a family member, such as a parent or grandparent attended the same college or university you're enrolled in, you may receive a tuition discount. There may be additional requirements to qualifying for this discount, such as, your family member being active in the school's alumni association or maintaining a certain GPA.

Tax Rewards

Middle-income families are perfectly positioned to receive tax credits for college expenditures. For example, the Lifetime Learning credit has income requirements that exclude those who earn over and under certain amounts. Programs like this, as well as tuition savings plans, offer a few different ways for middle-income families to receive tax benefits.

Federal Loans

If you’ve taken advantage of all your financial aid options and find you still have more to pay, it may be time to consider loans. Non-need based federal loans such as the Unsubsidized Federal Stafford Loan for students and the Federal PLUS Loan for parents can bridge whatever gap you find in your aid and your expenses. Federal education loans generally have low interest rates or may be tax-deductible, so they’re a smart alternative to using a credit card, for example.

Private Loans

You may find that you still need financial assistance after exhausting all the options above. If that’s the case, private student loans may be for you. We always recommend you take advantage of grants, scholarships, and federal aid before taking out a private student loan. To learn more about ELFI’s private student loan options,* click here.

The cost of college can present a challenge for families at all income levels, but middle-income families often struggle the most to find financial aid because their finances fall between affording college and needing assistance. If your family is in this situation, don’t let it get you down. The options in this article are a good place to start searching for financial assistance. Don’t lose sight of the end goal – getting the degree you want and establishing a successful career. If you’re already looking for financial aid, you’re well on your way.

*Subject to credit approval. Terms and conditions apply.

Note: Links to other websites are provided as a convenience only. A link does not imply SouthEast Bank’s sponsorship or approval of any other site. SouthEast Bank does not control the content of these sites.

2020-01-27

FAFSA Deadlines for 2020

Congratulations! You are graduating high school and taking the next step into college. You may have been accepted into different schools and still deciding where you will attend or you have already been admitted into your dream school and are now wondering how you will pay for it. Whether you’re already committed to a school or still planning your future, it’s important to know what the FAFSA is and the deadlines associated with it when you are figuring out how to pay for college.

What is the FAFSA?

FAFSA stands for Free Application for Federal Student Aid. You should complete the FAFSA in order to be eligible to receive federal, state financial aid, and aid from your school. The aid can be in the form of grants, scholarships, work study, and federal student loans. The application is easy to complete online or by paper. The application provides the necessary information to calculate your financial need to see what aid you would be eligible for. There are no income limitations so it’s smart to fill out FAFSA regardless of your financial situation. Even if you think you and/or your family may not qualify for financial aid, you will not know for sure until your university’s financial aid office reviews your application.

Note: As the name states it is a free application, so be aware of any websites that charge you to fill out the application to avoid any scams!

Who Should File the FAFSA?

If you are a senior in high school and will be attending college you should fill out the form. Also, returning college students who previously filled out the FAFSA must fill out the FAFSA every year while in school. The information allows financial aid offices to determine your financial need.

Your financial need is determined by taking the Cost of Attendance (COA) and subtracting your Expected Family Contribution (EFC). COA - EFC = Financial Need.
The COA is different for each school and includes tuition, books, supplies, transportation, and room and board.
Your EFC is calculated by a formula established by law based on the information provided on the FAFSA. The formula takes into account your family’s income, assets, and family size, among other factors for a dependent student.
If your EFC is low you may be eligible for more financial aid.

So how does all this work? Here is an example:

You plan to attend a school with a COA of $25,000.
Your EFC is $10,000.
$25,000 - $10,000 = $15,000 is your financial need. This amount could be awarded to you in grants by the school, state or federal grants or by subsidized federal student loans.

Preparing to File the FAFSA

Ready to file? Here is the information you will need to complete the application.

If you are a dependent student (receiving financial help from parents) you will need the following for both you and your parents:
- Social Security Number
- Tax returns
- Bank statements
You will also need to apply for a FSA ID. This is a username and password that will allow you to access the Federal Student Aid’s system to complete and sign the FAFSA electronically.

Important Dates to Know

The earlier you file the FAFSA, the better because you will be eligible for more aid. It is also important to file before the federal deadline because some states set their own deadlines that may be earlier than the federal deadline. Your state may also require an additional form, so be sure to check the Federal Student Aid website to see what your state requires. In addition, some schools have an earlier deadline then the federal deadline so you should check with your school’s financial aid office to ensure that you don’t miss their deadline.

The important federal dates to know are:

October 1 - the application becomes available
June 30 - the deadline to file each year

The application becomes available on October 1, the year before you would start school. While you have until June 30 after the school year to submit the application, it’s advantageous for you to apply as early as possible. This means for the 2019-2020 school year the application became available on October 1, 2018 and the deadline is June 30, 2020. For the 2020-2021 school year the application became available on October 1, 2019 and must be submitted by June 30, 2021. On October 1, 2020 the application for the 2021-2022 school year will become available.

Other Options: Private Student Loans and Student Loan Refinancing

Maybe you didn’t know about the financial aid process and the deadline passed or didn’t receive enough aid and are looking to cover the gap in education expenses. Luckily, there are other options to help you pay for school. Private student loans are a great resource to help you pay for higher education. Private student loans are from a private lending company or bank that you can use to pay for your school expenses included in the cost of attendance. You can apply for private student loans at any time. Just like with the FAFSA, you will need to provide some financial information and documents, such as your most recent W-2 and paystub. If you do not have these items you may need a co-signer, such as a parent, who will have these documents. There are many private lenders so it’s best to do your research and compare. You want a lender that is reputable and offers a good rate on your loan. It’s also important to compare the terms of any loan offers. For example, you should check if there is a prepayment penalty on the loan or any fees associated with the loan. A private student loan company should make the process easy. At ELFI there are no fees to apply, no origination fees and no prepayment penalties*. There are also flexible repayment options. The online application is a simple process that allows you to see personal rates within minutes and you receive a dedicated Personal Loan Advisor to help you through the loan process. Private student loan companies can also help if you have already taken out loans. Through student loan refinancing*, you can reduce the interest you are paying on your student loans and as a result, reduce your monthly payments and the amount you pay over the lifetime of the loan. To see how much you could save by refinancing, check out our student loan refinance calculator.

Bottom Line

Mark the dates in your calendar and be sure to fill out the FAFSA early. Paying for school can be one less worry if you plan ahead!

*Subject to credit approval. Terms and conditions apply.

2020-01-24

This Week in Student Loans: January 24

Please note: Education Loan Finance does not endorse or take positions on any political matters that are mentioned. Our weekly summary is for informational purposes only and is solely intended to bring relevant news to our readers.

This week in student loans:

A Zero Based Budget Helped This Woman Pay Off $215k Worth of Student Loan Debt in 4 Years
Court Cites Student Loans As Reason To Deny Bar Admission To New Lawyer
Student Loan Debt Is a Key Factor for Gen Z When Making Career Decisions

A Zero Based Budget Helped This Woman Pay Off $215k Worth of Student Loan Debt in 4 Years

When Cindy Zuniga accomplished a major milestone when she graduated from law school in 2015, however, she also came out with $215,000 in student loan debt. See how she managed to eliminate her debt in just four years by both refinancing her student loans and using a zero based budget.

Source: ABC News

Court Cites Student Loans As Reason To Deny Bar Admission To New Lawyer

Student loan debt can sometimes be a barrier to obtaining professional licensure, specifically for teachers, doctors, and nurses. For one recent graduate of law school, her student loan debt played a significant role in her being denied a license to practice law.

Source: Forbes

Student Loan Debt Is a Key Factor for Gen Z When Making Career Decisions

A recent survey found that Gen Z's concern over student loan debt is a key factor in their career decisions, causing many to prioritize finances over passion when it comes to their fields of study. The study found that an overwhelming 61% of college students would take a job they're not passionate about due to the pressure to pay off their student loans.

Source: Yahoo News

That wraps things up for this week! Follow us on Facebook, Instagram, Twitter, or LinkedIn for more news about student loans, refinancing, and achieving financial freedom.