Glossary · Financial Aid
Verification
A process where a college’s financial aid office audits the information submitted on the FAFSA by requesting supporting documentation such as tax returns, W-2 forms, and bank statements. Approximately 30% of FAFSA filers are selected for verification each year.
What it means
Verification is the financial aid equivalent of an IRS audit, except it happens at the school level. The Department of Education selects students for verification either randomly or based on data inconsistencies in the FAFSA submission. The school can also select additional students at its own discretion.
When selected, the student must submit requested documents (tax transcripts, W-2s, 1099s, bank statements, household size verification) to the financial aid office, usually within 30 days. Until verification is complete, the school cannot finalize the financial aid package. Missing the verification deadline can delay or cancel the aid offer entirely.
Verification catches errors more often than it catches fraud. Common issues: the FAFSA reported household size incorrectly, the tax data from the IRS Direct Data Exchange did not match an amended return, or a parent accidentally reported gross income instead of adjusted gross income. If verification finds an error, the school corrects the SAI and repackages aid accordingly. The result can increase or decrease the aid offer.
Worked example
A student is selected for verification at Villanova. The financial aid office requests 2024 federal tax returns, W-2 forms for both parents, and a verification worksheet confirming household size. The family submits documents within two weeks. Verification reveals that the FAFSA correctly imported a $98,000 AGI via the IRS Direct Data Exchange, but the household size was listed as 3 instead of 4 (a sibling under 24 enrolled in college was omitted). The corrected household size lowers the SAI by approximately $3,000, increasing Villanova’s institutional grant by the same amount.
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