Navigating Complexities of Financial Aid Verification

Financial Aid Directors are an important part of helping students with their FAFSA forms and the whole process of obtaining financial aid. Although this process tends to only require the FAFSA, a small portion of students get selected for verification. The verification process 

is set up to help ensure that the information students provide is accurate.

Up to 38 percent of FAFSA filers had to go through the verification process over the past ten years, according to the National Association of Student Financial Aid Administrators (NASFAA) and the National College Attainment Network (NCAN). Although this number dropped to just over 17 percent in 2021-2022. NASFAA and NCAN are working on ways to lower this percentage even more.

In the meantime, navigating the verification process can be complicated for Financial Aid Directors. While the percentage of students chosen for verification is decreasing, that’s still a lot of applications that need to go through this process. FA Solutions LLC recommends the best practices for Financial Aid Directors.

Best Practices for Financial Aid Verification

Easily Accessible Forms

Ensuring that verification forms are easily accessible for students is important. For example, having them on the school website or portal or available for an electronic signature offers a convenient way for students to complete these forms.

Yearly Staff Training

Staff should know how to review collected documents for the verification process. Conducting yearly training sessions helps ensure that staff has the most up to date knowledge.

Conflict Checklist

Creating a checklist for staff can make it easier for them to keep track of and identify conflicts when reviewing documents for the verification process.

Policy and Procedure Requirements

Schools have to follow a certain set of rules and requirements when handling applications that are selected for verification. Making sure your school has a verification process in place that meets these requirements is essential. This generally includes giving students a clear 

explanation of why they were chosen for verification, setting a time period for students to submit documentation, and determining procedures used for correcting FAFSA data. Ensuring that verification forms are easily accessible for students is also important. For example, having them on the school website or portal or with a signature offers a convenient way for students to complete these forms.

School-Selected Verification

The Central Processing System (CPS) flags applications for verification. Schools can also select students if there’s reason to believe that information on an application is incorrect. 

Flagged applications end up in standard verification group (V1) for tax filers and non-tax filers, a custom verification group (V4) focused on identity and educational statement, or an aggregate verification group (V5) combing V1 and V4. Financial Aid Directors need to know 

how to navigate the process for each group and collect the appropriate documents. 

Verification Exclusions

In some cases, student applications don’t need to be verified. For example, if a student is only eligible for unsubsidized loan funds or drops before being eligible for a disbursement. However, if a student does meet an exclusion for completing verification, schools are still 

expected to resolve any conflicting data or incorrect information.

Verification Processing

The verification process can lead to delays that affect your school’s financial aid processing. Partnering with a third-party financial aid servicer, such as FA Solutions LLC, can help speed verification processing along. Having this kind of help can make it easier for Financial Aid Directors to handle all of the money that flows through this department.

Get Reliable Help with Financial Aid Verification

FA Solutions LLC is a third party financial aid servicer with the knowledge and ability to help the verification process run more smoothly for your school. Our experts can also ensure that your school stays up-to-date on changes that affect the verification process. We can provide guidance in using best practices for verifying financial aid applications. Contact us to learn more about our services

Need some help finding the right financial aid solutions so you can keep funding higher education without losing sleep? FA Solutions is here to help, offering consulting, staffing and third party processing to smooth your workday and support enrollment at your university. 

Our motto is "A True Extension to your Financial Aid Office," and that’s exactly what we seek to provide to all our clients. Want to learn more? Please feel free to check out our services or get in  touch today.