For those who followed this thread, contankerous had some concerns due to a particular situation. I believe I put those concerns to rest.
I want everyone to know is that financial aid rules and regulations are important, and schools are charged with working to make sure they are followed. The government has a legitimate concern to make sure that taxpayer funds are used properly. That said, though, my experience is that the majority of people do their best to present information accurately on the FAFSA. When they make mistakes, it is generally out of ignorance and not out of a desire to cheat the system. The focus on verification is to find and fix mistakes, not to punish people ... although sometimes the resulting loss in aid does seem like a punishment.