To Verify or Not to Verify…

Verification. The process used by the institution to check the accuracy of the information the student and, in the case of a dependent student, the student’s parents, provided when applying for Title IV (aka Federal) financial aid via the FAFSA. In order to complete the verification process, students are required to provide certain documents to the school for review. Who is selected for Verification? Historically, less than 30% of students are selected for verification and the Department of Education recently announced actions to further reduce that number. At UW–Madison, our numbers tend to be even lower. Students can be selected to complete verification in one of two ways
  1. By the Central Processing System (CPS) (aka what’s behind the FAFSA) during the application process, based on predetermined criteria and/or random selection; or
  2. By the institution, based on its own verification policies.
Fun Fact. It’s an industry secret how the Department of Education actually selects an applicant for verification. Financial aid administrators have all sorts of theories and ideas, but it has never and likely will never be disclosed. How does a student know they’ve been selected? Students are first notified if they’ve been selected for verification when they receive their Student Aid Report (SAR), which is the follow up email a student receives after the FAFSA has been submitted. But ultimately, it’s up to the school to provide the exact details. OSFA notifies incoming freshmen shortly after they’ve been admitted if they have been selected, and continuing students are contacted when we begin processing FAFSAs each fall. An email is sent either to their wisc.edu or preferred account and it directs students to OSFA’s Verification Portal – https://uwmadison.educationpartners.com/.  We do use a third-party vendor called Anthology for this product, but have tried to brand it with UW and OSFA as much as possible so students/families don’t think it’s a scam. The verification portal will list the student’s exact requirements and allows a student to securely upload and electronically sign documents. Though Anthology may not be perfect, it’s worlds better in terms of helping students submit the required information and we’re extra thankful we had this system in place pre-pandemic so no matter where in the world our students or their families are, they can still access it and complete the process. So there are different types of verification? Yes, but trust us – this is still better than what they had us doing just a few years ago! There are three categories of verification:
  1. Standard (referred to as V1) – this is what financial aid administrators are the most familiar with. We are required to verify:
    1. Tax filers must verify:
      1. Adjusted gross income (AGI)
      2. U.S. Income tax paid
      3. Untaxed portions of Individual Retirement Account (IRA) distributions
      4. Untaxed portions of pensions
      5. IRA deductions and payments
      6. Tax-exempt interest income
      7. Education tax credits (American Opportunity Tax Credit and Lifetime Learning Tax Credit)
      8. Household size
      9. Number in college
    2. Nontax filers must verify:
      1. Income earned from work
      2. Household size
      3. Number in college
  2. HS Completion/Identity (V4)
    1. High school completion status
    2. Confirmation of identity and signed “Statement of Educational Purpose”
  3. Combo (V5) – students must complete the requirements for both V1 and V4.
What documents have to be submitted for this process?
  • For those that filed taxes,
    • We 100% prefer that students use the IRS Data Retrieval Tool right in the FAFSA as this is unaltered and therefore considered ‘verified’ data and won’t require that we ask for tax documents. Even if a student didn’t use the IRS DRT initially, they can always go back into the FAFSA to submit a correction with that information included.
    • If they can’t use the IRS DRT (some just can’t…), we will need either,
      • A Tax Return Transcript or an alternative tax transcript listing tax account information, or 
      • Federal Tax Returns (2019 for the 2021-22 FAFSA)
  • For those that didn’t file taxes 
    • They must get a copy of the IRS verification of nonfiling letter
  • Verification worksheet (dependent or independent versions) will confirm Household Size & Number in College
  • To prove high school completion status
    • High school transcript
    • High school diploma
    • An academic transcript indicating the student successfully completed at least two years worth of postsecondary work
  • Identity and Statement of Educational Purpose
    • Pre COVID-19, the student had to appear in person at the school and present an unexpired, valid government-issued photo ID and complete the Identity and Statement of Educational Purpose form or do so in front of a notary public. Thankfully, however, the Department of Education waived the requirement so now a student must just print the worksheet, complete, and physically sign it with a copy of their ID.
How long does it take to complete? From the time we receive all of the requested information, our turn around time can be fairly quick. We also make a point to prioritize incoming students knowing they have important decisions to make in a timely manner. We’ve got an incredible team of Equity Warriors that are standing by ready to get students through the verification process including Maggie Zabinksi, Erica Tisdale, Amy Whitford, Sarah Blevins, and Katy Weisenberger. If you’re ever working with a student that needs help with this process, don’t hesitate to reach out to this team directly – federal.awards@finaid.wisc.edu. Ultimately, this process stops a student from getting their financial aid offer so it is important that they prioritize getting the requirements completed.  There is no option for a student to ‘opt out’ of completing verification. To give you a sense, here’s where we’re currently at with 2021-22 verification (continuing students ONLY)
    • 14.03% students selected
    • 305 students have completed verification process
      • 232 students (or their parents) used the IRS Data Retrieval Tool
      • 194 students are actively working on through their verification (submitted documents, communicating with Verification team)
  • Average length of time for entire process (from the time they are notified about verification to the time of completion): 10 days
  • Average length of time once all documents have been received to the time of verification completion: 2 days
Coming Soon! We’re working on building out a webpage to provide additional detail and information for students that have been selected for verification and their parents. Questions? Federal.awards@finaid.wisc.edu