What does FAFSA verification check?

During verification, the college financial aid administrator will ask the applicant to supply copies of documentation, such as income tax returns, W-2 statements and 1099 forms, to verify the data that was submitted on the Free Application for Federal Student Aid (FAFSA).

Does everyone get selected for FAFSA verification?

The U.S. Department of Education selects around 25 percent of all filers for verification. Your FAFSA being selected for verification may not be a problem. Sometimes, it can happen randomly or your school may want to verify all forms. Follow the instructions you receive to make the process as smooth as possible.

What happens if you fail FAFSA verification?

Failure to return the verification forms by the deadline will cause you to lose this year's financial aid. Review your FAFSA form before you send it in the first place. Errors can happen in the rush to get the FAFSA form out the door, but you can cut down the odds of being verified with an error-free form.

What information does FAFSA look at?

Your family's taxed and untaxed income, assets, and benefits (such as unemployment or Social Security) all could be considered in the formula. Also considered are your family size and the number of family members who will attend college or career school during the year.

Can FAFSA audit you?

The financial aid “verification process”—an audit in all but name—is brutal for all involved. Students and their families must submit reams of documents detailing their financial information. Financial aid officers must review those documents line by line to ensure that everything matches the FAFSA.

FAFSA Verification

Why would my FAFSA get flagged?

There are a variety of reasons students have their FAFSA flagged for verification, including random selection, applying to a college that verifies all students, to protect against identity theft, or most commonly, there was a mistake on your FAFSA that needs clarification.

Does FAFSA check with IRS?

The law now allows IRS to provide the limited tax information necessary to verify income for these programs directly to ED. The automated process will happen in real-time for individuals after providing approval to ED during the online application process.

What disqualifies you from getting financial aid?

For example, if your citizenship status changed because your visa expired or it was revoked, then you would be ineligible. Other reasons for financial aid disqualification include: Not maintaining satisfactory progress at your college or degree program. Not filling out the FAFSA each year you are enrolled in school.

Does FAFSA check bank accounts?

Summary: Yes, FAFSA can check your bank accounts if your application is selected for verification. This includes both personal and savings accounts, but not retirement accounts. In some cases, you may need to provide documentation for your parents and spouse's bank accounts.

What does FAFSA not look at?

Cars, computers, furniture, books, boats, appliances, clothing, and other personal property are not reported as assets on the FAFSA. Home maintenance expenses are also not reported as assets on the FAFSA, since the net worth of the family's principal place of residence is not reported as an asset.

Why did FAFSA select me for verification?

It's a process to confirm that the information on the FAFSA you submitted is an accurate snapshot of your finances. You were probably chosen at random, like the vast majority of those selected, or your school may have asked to have your information verified.

What to do if FAFSA is flagged for verification?

In most cases, due to the IRS Data Retrieval Tool for the 2023–24 FAFSA form, you won't have to verify income and tax information. However, if you are selected for verification, the school may ask you to submit a tax transcript or other documentation to confirm the information you reported.

Does anyone get denied FAFSA?

According to the office of federal student aid, some applications can be denied because applicants did not meet the basic eligibility requirements. These include: Having demonstrated financial need for need-based federal student aid programs. Being a U.S. citizen or an eligible non-citizen.

How long is the FAFSA verification process?

How long does the verification process take? Verification processing time is generally two to three weeks during peak season (June-October), and one to two weeks during non-peak season (November-May). Therefore, students should start the process as soon as possible.

What percent of students get verified for FAFSA?

FSA announced some good news at its most recent conference: For the current 2021-22 FAFSA cycle, the verification selection rate for all filers was reduced from 22% to 18%. However, the selection rate for Pell Grant-eligible FAFSA filers remains much higher.

How long does it take FAFSA to confirm?

If you submitted your 2023–24 FAFSA form online, we'll process your form within three to five days. If you submitted a paper FAFSA form, your form will be processed within 7 to 10 days.

Should I empty bank account before FAFSA?

If all money was pulled from checking and savings the day before the FAFSA was filed, the answer is zero. A nominal value of $200 or $300 may be listed, but there is no reason to include any more cash assets. Cash assets sink financial aid eligibility, but are virtually untraceable unless admitted to on the FAFSA.

Will FAFSA know if I empty my bank account?

Your bank account does have a minimal impact on FAFSA. If you drain the account to hide assets you are committing fraud. The FAFSA is an application and asks for asset information beyond cash. For almost all applicants the results are driven by income and requires IRS validation.

How much assets is too much for FAFSA?

Colleges will expect parents to use up to 5.64 percent of their assets toward college. Protected Assets. The asset protection allowance was eliminated in the 2023-2024 FAFSA, which means all of a family's assets are taken into account in the federal aid calculation.

What income is too high for FAFSA?

Both students and their parents often think their household income makes them ineligible for financial aid. However, there's no income limit for the FAFSA, and the U.S. Department of Education does not have an income cap for federal financial aid.

What is the minimum income for FAFSA?

There is no set income limit for eligibility to qualify for financial aid through. You'll need to fill out the FAFSA every year to see what you qualify for at your college. It's important to make sure you fill out the FAFSA as quickly as possible once it opens for the following school year.

Do you have to pay FAFSA back?

The type of aid you receive after filling out the FAFSA determines if you need to pay it back. Grants, scholarships, and work-study money don't need to be repaid but have finite funding limits. You will need to repay subsidized, unsubsidized, and Direct Plus Loans.

Does FAFSA check what you buy?

FAFSA doesn't check anything, because it's a form. However, the form does require you to complete some information about your assets, including checking and savings accounts. Whether or not you have a lot of assets can reflect on your ability to pay for college without financial aid.

Is lying on FAFSA a felony?

Lying on your FAFSA^® is considered fraud and it is deemed a felony and could result in up to 5 years in prison and/or a $20,000 fine.

Is it hard to qualify for FAFSA?

Basic FAFSA eligibility requirements

Have a high school diploma or a GED certificate. Be enrolled or accepted for enrollment in a qualifying degree or certificate program. Maintain satisfactory academic progress while in school. Not be in default on federal student loans or owe money on a federal grant.