The completion of the FAFSA is the first step in the process of a student receiving financial aid as they pursue a college education. The FAFSA is completed by the student and parent, in the case of a dependent child, or by the student if independent and contains information on a spouse. The FAFSA contains information on the family circumstances of the student and financial information, which is used in a mathematical formula by the U.S. Department of Education to calculate the amount of financial aid a student can receive.
The verification process can be begun for a number of reasons, including missing or incomplete data and by random selection by the Department of Education. Individual schools can also reserve the right to randomly select students for verification of information included on the FAFSA. Around 30 percent of students who apply for financial aid are randomly selected for verification by the Department of Education, according to Concordia University. In instances where the data contained on the FAFSA is contradictory, the verification process is also begun to check the information is correct.
During the verification process the student is supplied by mail with a notice that she must complete the verification process. This process includes the completion of a verification worksheet that must be completed and signed by the student, and parent where necessary. Information usually required during the verification process includes information on the number of college students in the household, a signed federal income tax return from the student and parent, or student and spouse. The federal income tax return is used to verify financial information including adapted gross income, taxes paid and education tax credits.
When the student completes the verification process without any alterations having to be made to the FAFSA, a notification letter is sent to the student detailing the amount of financial aid available and how to accept the aid. Where differences are discovered in the FAFSA information, and the supporting evidence submitted in the supporting documentation of the verification process, alterations are made to the application by the U.S. Department of Education. A student aid report is then sent to the student detailing their application information, this is followed by a financial aid award letter. FAFSA applications are used to award aid including grants and scholarships, some states also use the FAFSA to award the student non-federal financial aid.