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Do 4 Things If Your FAFSA Is Selected for Verification

By U.S. News & World Report

As families file the Free Application for Federal Student Aid — making sure to get it in before state and institutional deadlines in February and March — they shouldn’t forget about one important, final step.

About one-third of FAFSAs are selected for verification, says Nancy Coolidge, associate director of student financial support at the president’s office of the University of California system. The process requires submitting additional documents to the financial aid office in order to support information entered on the form.

Colleges may ask families to send tax return transcripts, siblings’ college registration forms, proof of income or other supporting documentation.

Neglect to complete the verification, and students will find themselves without federal financial aid.

“We cannot disburse any aid to you unless you complete verification,” says Coolidge.

Those who do complete the verification will see their aid packages increase, decrease or remain unchanged, depending on the information they provide.

While it may sound like a hassle, the verification process shouldn’t be daunting, say experts. Here are four things to know about FAFSA verification.

[Watch this video on how to avoid common FAFSA mistakes.]

1. Relax: The biggest misconception among filers is that selection for verification is a slap on the wrist, say experts.

“Students and families should realize that just because you’re selected for verification, it’s not an indication that you’ve done anything wrong,” says Jesse O’Connell, assistant director for federal relations at the National Association of Student Financial Aid Administrators. “All they’re doing is just confirming that the numbers on the FAFSA match up with original documentation.”

While some FAFSAs may be verified to clear up inconsistencies, others may be selected randomly.

[Discover the unexpected ways that some colleges may use the FAFSA.]

Some universities, typically small colleges that award a large amount of their own money, verify 100 percent of financial aid applicants, say experts.

2. Be alert: Missing the memo that your FAFSA was selected for verification isn’t a valid excuse. “It will hold up your financial aid if they’re still waiting for verification pieces,” says Jodi Okun, who founded College Financial Aid Advisors, which helps families navigate the college financial aid process, and serves as a brand ambassador for Discover Student Loans.

An asterisk next to the expected family contribution amount on the Student Aid Report, or SAR, is an indication that the FAFSA was selected for verification.

Schools may reach out to students through their online student accounts, university email or personal email address to offer more information about the documents they require. Students should check those regularly after filing the FAFSA, say experts.

“It’s incumbent on students to be grown up and check,” says Coolidge. “If a student is traveling in Mongolia for the summer, they may want to designate someone to check it for them.”

[Read about five myths about parent information on the FAFSA.]

3. Watch the clock: Doing financial aid paperwork is no one’s idea of a good time, but students shouldn’t drag their heels when it comes to submitting verification documents.

“There’s a fair amount of urgency because campuses will award aid based on whoever’s eligible,” says Coolidge. “The amount of institutional aid may be awarded to someone else.”

For students attending a college in the University of California system, “you need to get this verification info to us by mid-May,” says Coolidge. Check with the university for any deadlines. You’ll like need to get the FAFSA verification submitted before summer begins.

4. Look into the IRS Data Retrieval Tool: One way to minimize the chances of being selected for verification is to use the IRS Data Retrieval Tool, a federal tool that transfers information directly from tax returns to the FAFSA.

“For families who do take advantage of the IRS Data Retrieval Tool, and then don’t change that information, that information is considered verified already,” says O’Connell, of NASFAA.

One challenge with the tool is that it’s common — and even encouraged — that families submit the FAFSA before filing their taxes.

The strategy in that case is to file the FAFSA soon after it becomes available on Jan. 1, using estimated information. After applicants file their taxes, they can use the IRS tool to update the FAFSA, assuming they submitted it electronically.

And, of course, all families, whether they use the tool or not, should strive to be accurate the first time.

“Filling out the FAFSA, to the best of your knowledge, to be the most accurate and true is your first step,” says Okun.

Trying to fund your education? Get tips and more in the U.S. News Paying for College center.

More from U.S. News

College Cost Tips for Parents, Students Enrolling Together

Know Your Risk Factors for Delaying Graduation, Accumulating More Debt

7 Questions College Financial Aid Officers Wish Parents Would Ask

Do 4 Things If Your FAFSA Is Selected for Verification originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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