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Financial Aid Answers - presented by eLearners.com

It is a daunting task to analyze, interpret, and implement federal financial aid regulations these days. Hopefully the information I provide will help you understand and locate the financial aid you need to earn your online degree.

I'm a Veri-What?????

How many times have you been told you're a verification by financial aid personnel? What they really mean is your FAFSA has been selected for verification, not you personally. Unfortunately, sometimes additional information is required by the financial aid office after your FAFSA is filed and processed by the Federal Processor.

Verification can be for several reasons: the Federal Processor has randomly chosen you, information your reported on the FAFSA was questioned by the Federal Processor, or the financial aid office has questions about your FASFA information. Verification simply means additional documents are required by the financial aid office to verify information you have already reported on your FAFSA.

What documents are required? If you are selected for verification, your financial aid office will notify you about the documents needed. The following documents are required by the financial aid office:

  • Dependent or Independent Verification Form. Which form is required depends on whether you filed the FASFA using parent information or only your own (the financial aid office will tell you which form is needed). This form gathers information about your family's household size, number of dependents attending college, and untaxed income received.
  • Signed copy of student's federal tax return, if a tax return was filed. The federal tax return is a 1040, 1040A, or 1040EZ. If an electronic tax return was filed, software usually allows the filer to print a standard 1040, 1040A, or 1040EZ, which can be accepted as long as it's signed. If married, both student and spouse tax return is required.
  • Signed copy of parents' federal tax return, if a tax return was filed. The acceptable forms are the same as the student's (1040, 1040A, or 1040EZ).

What if taxes were filed Married, But Filing Separately? If you were married and filed separately from your spouse, both you and your spouse's signed federal tax returns must be submitted to the financial aid office. The same applies if you are required to submit parent tax returns and they are married, but filed separately.

What if I or my parents filed a joint tax return, but filed the FAFSA as separated or divorced from spouse? If you filed a joint tax return with your spouse and are either separated or divorced on the FAFSA, you must still submit the signed joint federal tax return, but be sure to write what portion of the income on each tax line was yours and what was your spouse's. Also send copies of all W-2 forms so financial aid personnel can identify and use only your income. The same applies to parents if you are required to submit a parent tax return. Only the parent's information you listed on the FAFSA will be used.

What if I or my parents don't have a copy of the federal tax return? If you are unable to locate a copy of your (or your parents') federal tax return, you (or your parent) can call the federal IRS at 800-829-1040 and request a free transcript of tax information. Do not request a copy of the actual tax return! Getting a copy of the actual return takes weeks and there is a charge. An IRS transcript is acceptable in place of the actual tax return and usually takes about 10 days to receive.

What is looked at in verification? The following FAFSA information must be verified by the financial aid office:

  • Household size
  • Number of dependents in college
  • Adjusted Gross Income from tax return
  • U.S. taxes paid from tax return
  • Certain types of untaxed income and benefits:
    • Social Security benefits
    • Child support
    • IRA/KEOGH deductions
    • Foreign Income exclusion
    • Earned income credit
    • Interest on tax-free bonds
  • All other untaxed income included on the federal income tax return, excluding information on tax schedules.

At the discretion of the financial aid office, other FAFSA information such as parent wages, or assets, may also be verified.

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Published Wednesday, October 17, 2007 11:21 AM by ter
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Comments

 

MichelleA said:

Great post!!  Very informative :-)

October 22, 2007 12:21 AM
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About ter

I have been a financial aid advisor for nearly 25 years now! Time really does fly. Like other e-learners, I acquired my Bachelor of Arts degree and my Master of Science degree while working full time and raising a family. My coursework consisted of classroom instruction, online and independent study courses, and weekend classes.

I began in financial aid as a secretary, and have worked my way to senior level financial aid advisor at a public four year college in the Midwest. When I began in 1984, we did not have computers, so I have seen the evolution of technology and its impact on education and financial aid.

My husband and I have four children in our household. My daughter and stepson are both in college. My son and stepdaughter are high school freshman.

I look forward to being a part of eLearners.com and given the chance to educate students, especially “non-traditional” students, on the ins-and-outs of financial aid. It is a daunting task to analyze, interpret, and implement federal financial aid regulations these days. Hopefully the information I provide will help.

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ter

I have been a financial aid advisor for nearly 25 years now! Time really does fly. Like other e-learners, I acquired my Bachelor of Arts degree and my Master of Science degree while working full time and raising a family. My coursework consisted of classroom instruction, online and independent study courses, and weekend classes.

I began in financial aid as a secretary, and have worked my way to senior level financial aid advisor at a public four year college in the Midwest. When I began in 1984, we did not have computers, so I have seen the evolution of technology and its impact on education and financial aid.

My husband and I have four children in our household. My daughter and stepson are both in college. My son and stepdaughter are high school freshman.

I look forward to being a part of eLearners.com and given the chance to educate students, especially “non-traditional” students, on the ins-and-outs of financial aid. It is a daunting task to analyze, interpret, and implement federal financial aid regulations these days. Hopefully the information I provide will help.

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