Laredo College Financial Aid Verification Policy

This policy outlines the verification process used by Laredo College, where selected students must submit additional documentation to confirm the accuracy of the information provided on their FAFSA before financial aid eligibility can be determined, ensuring compliance with federal regulations as outlined in 34 CFR 668.53 and Chapter 4 of the 2024-2025 Federal Student Aid Handbook.

What Is Verification?

Verification is the process used by Laredo College to confirm the accuracy of the data reported on a student's FAFSA (Free Application for Federal Student Aid). The U.S. Department of Education (DOE) selects certain applications for verification as part of its quality-control measures. In addition, Laredo College verifies information for FAFSA applications that may contain conflicting information. 

Who Is Selected for Verification?

• DOE Selection: The Department of Education selects students for verification based on specific criteria, which may include random selection or conflicting information in the FAFSA.
• Conflicting Information: Laredo College reserves the right to select students for verification based on conflicting information in the FAFSA, even if the DOE has not selected the student for verification.

Student Notifications

Students selected for financial aid verification will be notified via email through their official student email account. Students may also review the Financial Aid section on their Student Self-Service, PasPort account to view pending tasks/documents required to complete the verification process, including their verification tracking group. All the necessary verification documentation must be completed and processed before a financial aid offer can be made, authorized or disbursed. 

Verification Tracking Groups

Students may be placed in one of several verification tracking groups, which dictate the required documents needed for specific information to be verified by the Office of Financial Aid:

• V1: Standard Verification: requires verification of data fields for tax filers, such as AGI, U.S. Income Tax paid, income from work, untaxed income, etc. and for non-tax filers such as income from employment or other sources.  
• V4: Custom Verification: requires verification of identity for the student, spouse and/or parent (as applicable)
• V5: Aggregate Verification: is a combination of V1 and V4 verification requirements

Required Documentation

Dependent on the information being verified (and the verification tracking group), students may be asked to submit one or more of the following documents:

• IRS Tax Return Transcripts or signed copies of IRS 1040 forms, if unsuccessful IRS Data Retrieval Tool (DRT)
• W-2 forms from all sources of employment.
• Verification of Non-Filing (VONF) letters for non-tax filers.
• Verification Worksheet, accessible on the Financial Aid section on the Student Self-Service, PasPort account.

For dependent students, parent tax information may also be required.

Note: Not all students selected for verification have to submit the same documents, as every student's case is unique. For additional details or frequently asked questions regarding the required documents for verification, visit the Office of Financial Aid website. 

IRS Data Retrieval Tool

This IRS Data Retrieval Tool (DRT) helps streamline the verification process by reducing the need for manual documentation by transferring income and tax information directly from the IRS into the FAFSA. 

Benefits of the IRS Data Retrieval Tool (DRT)

• Minimizes Documentation: The DRT automatically pulls tax information directly from the IRS database into the FAFSA, significantly reducing the need for additional paperwork such as tax transcripts or signed returns.
• Accuracy: Using the DRT ensures the financial data on the FAFSA is accurate, which minimizes discrepancies that could delay the verification process.
• Efficiency: Since the data is transferred directly from the IRS, it eliminates errors that can occur when manually entering tax information.

Consent for use of IRS Data Retrieval Tool (DRT)

Starting with the 2024-2025 academic year, the IRS Data Retrieval Tool (DRT) will require explicit consent from students, spouses (if applicable), and parents (if dependent) to transfer income and tax information directly from the IRS into the FAFSA. 

• Mandatory Consent: All parties (students, spouses, and parents) must provide consent to transfer tax data from the IRS. This consent must be granted to allow the IRS to share tax information via the DRT.
• Spouses and Parents: If a student is married or classified as a dependent, both the student and spouse (or parents) must individually consent for their tax data to be shared.

Unsuccessful IRS Data Retrieval Tool (DRT)

If the DRT is unavailable or the transfer is unsuccessful, the student will be required to submit:

• Tax Transcripts or
• Signed copies of IRS 1040 forms to complete the verification process.

to continue with the verification process and ensure accurate financial information can still be obtained to determine financial aid eligibility.

Non-Tax Filers

Students, spouses or parents who did not file taxes may need to submit a Verification of Non-Filing (VONF) letter from the IRS. Individuals without an SSN, ITIN, or EIN must provide a signed statement certifying their non-filing status and list all sources of income and resources for the relevant tax year. Supporting documentation, such as W-2s, 1099s, or other income records, must also be submitted.

Conflicting Information

Upon submission of the required documents for verification, if there is conflicting information between the FAFSA and the submitted documentation, a FAFSA correction or additional documents may be required. The Office of Financial Aid will notify the student via email to their official student email account of the additional requirements. 

Impact on Financial Aid

Verification is a critical step in determining financial aid eligibility, and no financial aid will be offered, authorized or disbursed until this process is complete. Laredo College will provide specific deadlines for the submission of required verification documentation, and students are strongly encouraged to submit these documents as soon as possible to avoid delays in financial aid processing. Changes to the information provided during verification may result in adjustments to a student’s financial aid award, and failure to submit the necessary documentation by the stated deadline may lead to the cancellation of financial aid eligibility for the academic year.

Processing Timeline

Complete Verification documentation is reviewed within ten business days after the submission of all supporting documentation.

Document Submission and Contact Information

For questions about verification, documents required, and document submission, students are encouraged to regularly review the Financial Aid section on their Student Self-Service, PasPort account or visit the Office of Financial Aid.