Verification Requirements for Federal Financial Aid Programs
Starting with the 2012-2013 academic year, schools will have to verify all applications that are flagged for verification by the Department of Education.
- Learn how utilizing the"IRS Data Retrieval Tool" will simplify and expedite the verification process.
The Department’s long-term goal is for a customized approach to verification. A menu of potential verification items for each award year will be published in the Federal Register, and the items to verify for a given application will be selected from that menu and indicated on the student’s Student Aid Report ("SAR"). The SAR will continue to include only one verification flag to show students who were selected, and they will need to verify all the FAFSA items listed below that apply to them.
The verification flag will have a value of “Y,” and next to the EFC will be an asterisk referring to a comment in the student section of the SAR that tells applicants they will be asked by their schools to provide documentation. Schools may request documentation of::
- • Adjusted gross income (AGI)
• U.S. income tax paid• Education credits• Untaxed IRA distributions• Untaxed pensions• IRA deductions and payments• Tax-exempt interest• Income earned from work• Household size• Number in college• Supplemental Nutrition AssistanceProgram (SNAP, formerly food stamps)• Child support paid• High school completion status• Identity/statement of educationalpurpose
Counselors must also resolve any conflicting data before we can finalize a student's eligibility for federal financial aid funds. Because incoming freshmen have early application deadlines, their awards are tentative until all required documentation has been submitted and reviewed.
All documents should be returned directly to the Office of Scholarships and Financial Aid before May 1 for incoming undergraduates and before August 1 for returning students. Aid awards may need to be adjusted if there are differences between the data reported on the FAFSA and that reported on your tax returns and verification addendum.
The Department of Education outlines the minimum policies and procedures that schools should use each year in the Application and Verification Guide
Federal Verification Worksheets
The verification process will change for the 2013-2014 academic year.
Loyola University MAY require students to complete supplement forms to further clarify the information on a student's FAFSA
Internal Revenue Service ("IRS" ) Publications and Resources
- IRS Publication 17: Your Federal Tax Return
- IRS Publication 970: Tax Benefits for Education
- Frequently Asked Tax Questions and Answers
- Information for Families Impacted by the 2005 hurricanes
- Publication 525:Taxable and Non-Taxable Incom e- see page 20 for information on reporting funds received through the Road Home program
- FAQ for Hurricane Victims - Grant Proceeds
- Families whose 2008 tax returns include Road Home proceeds should contact their assigned financial aid counselor for further instructions.
- Tax Favored Treatment for Early Distributions from IRAs and other Retirement Plans for Victims of Hurricane Katrina
- Index of publications for impacted families (Publication 4492)
- Education Credits
- Form 8863
See Federal Tax Issues for more information.
Need Help With Your Tax Forms?
Except for a few specific situations, all federal aid must be processed and credited to a student's account before the last day of the semester. We would hope families would submit any requested information within2 weeks of the initial request. All information should be submitted no later than 30 days before the last day of class each semester in order to insure sufficient time for processing any pending student loan application.
Counselors will review your information and submit any required corrections directly to the federal processors. Counselors will notify students of any changes in their aid eligibility that result from any corrections made.
Updated February 5, 2013