Delay of 2012 tax returns - implications for FAFSA

SalveMater
Fri, 01 Feb 2013 21:52:07 +0000

“Does everyone have to go through “verification.” If not, is it generally low EFC that would be combed over b/c they are eligible for more federal dollars? Do they really need to ask for statements and returns if you’re not getting much more than unsubsidized Stafford or eligible for parent plus loans?”


Statistically, Fasfa requires verifications (“verfs”) on about 30% of the apps and this year it’s expected to be higher due to the recent elimination of 26 app questions. The feds requested a streamline version of the app to make eligibility simpler but it will no doubt result in more verifs due to missing info.
It appears that really low incomes, change from previous year and/or failure to use IRS retrieval tool is a flag for verf.
Fasfa flags for verfs, but it is the school - not the feds that will review or verify the parents’ or student’s documentation. Accordingly, the sum of the Fed Grant notwithstanding, it is the school that will use the Fasfa EFC code to determine whether any “additional” aid will be awarded. Consequently, the Fasfa app is critical for calculation of any and all aid need-based in nature, as each school awards its own gift aid or scholarship monies.


Sent from my iPhone, plz excuse the typos.