dwb2023/document-loader-jul2025 huggingface dataset:
Applicants	Exempt	From	Asset	Reporting
A	dependent	student	is	exempt	from	asset	reporting	if	they	meet	one	of	the	following	criteria.
1.	The	applicant	qualifies	for	a	Maximum	Pell	Grant
2.	The	applicant9s	parents9	2023	combined	AGI	is	less	than	$60,000	and	they	do	not	file	a	Schedule	A,	B,	D,	E,	F,	or	H,
AND
a.	They	do	not	file	a	Schedule	C,	OR
b.	They	file	a	Schedule	C	with	net	business	income	of	not	more	than	a	$10,000	loss	or	gain.
3.	The	applicant	or	applicant9s	parent	received	a	benefit	under	a	means-tested	Federal	benefit	program	during	the	2023
or	2024	calendar	year.
Exception:	A	dependent	student	is	not	exempt	from	asset	reporting	if	their	parents	(1)	live	outside	the	U.S.	or	(2)	do	not
file	taxes	in	the	U.S.	or	a	U.S.	territory,	unless	their	nonfiling	is	due	to	having	income	below	the	filing	threshold.
An	independent	student	is	exempt	from	asset	reporting	if	they	meet	one	of	the	following	criteria.
1.	The	applicant	qualifies	for	a	Maximum	Pell	Grant
2.	The	applicant9s	(and	applicant9s	spouse,	if	applicable)	2023	combined	AGI	is	less	than	$60,000	and	they	do	not	file	a
Schedule	A,	B,	D,	E,	F,	or	H,	AND
a.	They	do	not	file	a	Schedule	C,	OR
b.	They	file	a	Schedule	C	with	net	business	income	of	not	more	than	a	$10,000	loss	or	gain.
3.	The	applicant	or	applicant9s	spouse	received	a	benefit	under	a	means-tested	federal	benefit	program	during	the	2023
or	2024	calendar	year.
Means-Tested	Federal	Benefits	Programs
The	means-tested	federal	benefit	programs	are	listed	in	Chapter	2.	A	person	need	not	have	received	the	benefit	for	an
entire	year;	receiving	it	at	any	time	in	the	base	or	following	year	qualifies.	Also,	an	FAA	may	use	professional	judgment
(PJ)	to	count	a	benefit	if	a	person	did	not	receive	it	during	those	24	months	but	is	receiving	it	now.
No	Prorated	SAIs
The	FAFSA	Simplification	Act	does	not	allow	schools	to	use	alternate	or	prorated	SAIs	when	packaging	students	for	periods
other	than	9	months.	Therefore,	you	should	use	the	calculated	SAI	to	package	a	student,	regardless	of	the	length	of	time
of	the	student9s	enrollment.
The	SAI	Worksheets
The	2025-26	Student	Aid	Index	(SAI)	and	Pell	Grant	Eligibility	Guide	contains	SAI	worksheets	and	tables	for	each	formula
(A,	B	and	C),	which	can	be	used	to	manually	calculate	an	SAI	or	to	see	how	the	SAI	is	determined	for	each	of	the	formulas.
The	following	information	provides	additional	insight	into	the	SAI	calculation	process	and	may	prove	helpful	when
reviewing	the	SAI	worksheets	in	the	2025-26	Student	Aid	Index	(SAI)	and	Pell	Grant	Eligibility	Guide.
Formula	A	3	Dependent	Students
The	SAI	for	a	dependent	student	is	calculated	using	the	FAFSA	data	for	the	student	and	their	parents.	The	FPS	calculates
the	parents9	contribution	from	income	and	assets,	the	student9s	contribution	from	income,	and	the	student9s	contribution
from	assets;	the	SAI	is	the	sum	of	these	three	values.
Parents9	Contribution	From	Available	Income	and	Ass ets
from	the	student9s	(and	spouse9s)	net	worth.
Finally,	the	student9s	(and	spouse9s)	net	worth	is	multiplied	by	the	conversion	rate	of	7%	to	get	the	student9s
contribution	from	assets.	If	the	contribution	from	assets	is	negative,	it	is	set	to	zero.
SAI	Calculation	-	Independent	Student	With	Dependen ts	Other	Than	a
Spouse
This	is	the	final	step	in	determining	the	student9s	SAI.	The	student9s	available	income	and	contribution	from	assets	are
added	together	to	determine	the	student9s	adjusted	available	income,	which	can	be	a	negative	number.	The	total
student9s	contribution	from	adjusted	available	income	is	calculated	from	the	amounts	and	rates	in	<Table	C6:	Assessment
from	Adjusted	Available	Income=	in	the	2025-26	Student	Aid	Index	(SAI)	and	Pell	Grant	Eligibility	Guide.	The	rates	in	Table
C6	increase	from	22%	to	47%	as	the	adjusted	available	income	increases.	This	is	based	on	the	principle	that	as	income
increases	beyond	the	amount	needed	to	maintain	a	basic	standard	of	living,	the	portion	used	for	family	maintenance
decreases	and	the	portion	available	for	discretionary	purposes	increases.	Therefore,	a	progressively	larger	amount	of
income	may	be	contributed	toward	postsecondary	educational	costs.	The	number	resulting	from	the	assessment
according	to	Table	C6	is	the	student9s	SAI	and	may	be	negative.
Chapter	4
Verification,	Updates,	and	Corrections
Because	students	sometimes	make	errors	on	their	application,	there	is	a	process	for	verifying	applications	and	making
corrections.	The	FAFSA	Processing	System	(FPS)	selects	which	applications	are	to	be	verified,	but	you	also	have	the
authority	to	verify	additional	students.
You	must	verify	applications	selected	by	the	FPS	of	students	who	will	receive	or	have	received	subsidized	Title	IV	aid,	as
defined	below.	Verification	is	not	required	for	students	who	are	only	eligible	for	unsubsidized	Title	IV	aid	(however,	see
<Verification	exclusions=	later	in	this	chapter	for	an	important	caveat).	While	graduate	students	are	ineligible	for	most
types	of	subsidized	Title	IV	aid,	they	are	eligible	for	Federal	Work-Study	and	would	need	to	complete	verification	if	they
are	selected	and	receive	that	aid.	Students	who	are	eligible	for	both	subsidized	and	unsubsidized	Title	IV	aid	may	not
avoid	verification	by	accepting	only	unsubsidized	aid;	they	must	complete	verification	to	receive	any	Title	IV	aid	(see	the
<Disbursing	unsubsidized	aid=	section	later	in	this	chapter	for	more	information).
Required	Policies	and	Procedures
Your	school	must	have	written	policies	and	procedures	about	the	following:
The	time	in	which	students	must	submit	verification	documentation;
The	consequences	for	failing	to	submit	those	documents	in	time;
The	method	you	use	to	notify	students	if	their	Student	Aid	Index	(SAI)	and	Title	IV	aid	amounts	change;
The	procedures	you	or	students	follow	to	correct	FAFSA	data;	and
The	procedure	you	follow	to	refer	a	student	to	the	Office	of	Inspector	General	(OIG)	(see	Chapter	5	of	this	volume).
Your	school	must	provide	the	following	to	students	selected	for	verification	in	a	timely	manner:
A	clear	explanation	of	their	role	in	the	process,
A	list	of	documents	they	need	to	submit,	and
Deadlines	they	must	meet	and	the	consequences	of	failing	to	meet	them.
The	FSA	Assessments	are	located	as	additional	resources	in	the	FSA	Handbook	portion	of	the	Knowledge	Center.	You	can
use	the	verification	assessment	to	evaluate	your	verification	process.	In	addition,	the	Department	has	a	list	of	questions
and	answers	about	verification	located	within	our	Program	Integrity	Q	&	A	website.
Subsidized	student	financial	assistance	programs
34	CFR	668.52	<Subsidized	student	financial	assistance	programs=
Unsubsidized	student	financial	assistance	programs
34	CFR	668.52	<Unsubsidized	student	financial	assistance	programs=
Policies	and	Procedures
Verification	Selection	and	Professional	Judgment	(PJ)
You	must	complete	verification	for	a	selected	student	before	you	exercise	professional	judgment	(PJ)	to	adjust	any	values
used	to	calculate	the	SAI.	But	a	PJ	adjustment	does	not	require	you	to	verify	an	application	not	selected	for
verification.
Once	the	Department	selects	a	FAFSA	application	for	verification,	every	subsequent	transaction	for	that	award	year,	even
one	resulting	from	PJ,	will	indicate	that	the	student	is	selected	for	verification.
If	a	FAFSA	that	is	not	selected	for	verification	is	later	corrected,	that	can	result	in	the	application	being	selected.	However,
when	professional	judgment	is	used	to	adjust	an	application	that	is	not	selected	for	verification	and	the	FAA	correctly
indicates	the	PJ	flag	on	the	ISIR,	the	FPS	prevents	the	subsequent	transaction	from	being	selected	for	verification.
Applications	and	Information	to	be	Verified
A	menu	of	potential	verification	items	for	each	award	year	will	be	published	in	the	Federal	Register.	The	Department
published	2025-26	FAFSA	information	to	be	verified	and	acceptable	documentation	in	the	September	4,	2024	Federal
Register	Notice	(89	FR	71893).
A	student9s	FAFSA	Submission	Summary	and	Institutional	Student	Information	Record	(ISIR)	will	indicate	if	a	student	is
selected	for	verification.	On	the	FAFSA	Submission	Summary,	there	will	be	an	asterisk	(*)	next	to	the	SAI	and	a	comment
in	the	<Application	Status=	section	informing	the	student	that	their	school	has	the	authority	to	ask	for	additional
documentation	to	complete	verification.	Applicants	will	need	to	verify	all	the	FAFSA	items	that	apply	to	them.	On	the	ISIR,
you	will	see	a	verification	indicator	tracking	flag	set	to	a	value	of	<Y=	and	a	verification	tracking	group	(V1,	V4,	or	V5)	to
indicate	placement	in	one	of	the	verification	tracking	groups.
34	CFR	668.53
Verification	and	PJ
34	CFR	668.53(c)
Verification	items
34	CFR	668.56
Acceptable	documentation
34	CFR	668.57
School-Selected	Verification
In	some	cases,	you	(the	school)	may	choose	to	select	a	student	for	verification.	You	must	verify	any	information	you	have
reason	to	believe	is	incorrect	on	an	application.	You	may	also,	at	your	discretion,	require	a	student	to	verify	any	FAFSA
information	and	provide	reasonable	documentation	according	to	consistently	applied	school	policies.	In	either	case	you
may,	but	are	not	required	to,	include	any	of	the	FPS	verification	items	not	already	included.	Students	selected	for
verification	by	the	school	are	subject	to	the	same	verification	requirements	as	FPS-selected	applications,	including
deadlines,	allowable	tolerances,	and	interim	disbursement	rules.
When	schools	choose	to	verify	an	item	other	than	those	the	Department	selects,	they	may	delay	disbursing	Title	IV	aid
until	verification	is	completed	if	the	school-selected	item	can	affect	the	student9s	Title	IV	eligibility,	such	as	an	item	about
dependency	status.	But	schools	cannot	delay	disbursing	Title	IV	funds	when	the	item	has	no	bearing	on	Title	IV	aid.	For
example,	if	your	school	is	verifying	home	equity	of	a	family9s	primary	residence	to	determine	student	eligibility	for	school
or	state	aid,	you	may	not	delay	Title	IV	disbursements	as	the	value	of	the	family9s	primary	residence	is	excluded	from
assets	in	the	SAI	formula.
Verification	Tracking	Groups
Students	who	are	selected	for	verification	by	the	Department	will	be	placed	in	one	of	three	verification	groups	(V1,	V4,	or
V5)	to	determine	which	FAFSA	information	must	be	verified.	Groups	V2,	V3,	and	V6	are	reserved	for	future	use	by	the
Department.
V14Standard	Verification	Group
Tax	filers	(student,	student	spouse,	parent,	and	parent	spouse/partner,	as	applicable)	must	verify	the	following:
Adjusted	gross	income
Income	earned	from	work
U.S.	income	tax	paid
Untaxed	portions	of	IRA	distributions
Untaxed	portions	of	pensions
IRA	deductions	and	payments
Tax	exempt	interest	income
Education	Credits
Foreign	income	exempt	from	federal	taxation
Family	size
Non-tax	filers	(student,	student	spouse,	parent,	and	parent	spouse/partner,	as	applicable)	must	verify	the	following:
Income	earned	from	work
Family	size
V44Custom	Verification	Group
Students	must	verify	the	following:
Identity
Statement	of	educational	purpose	(SEP)
V54Aggregate	Verification	Group
This	group	is	essentially	a	combination	of	V1	and	V4.	Tax	filers	and	non-tax	filers	must	verify	the	items	listed	in	the
Standard	Verification	Group	(V1).	Students	must	also	verify	their	identity	and	sign	a	statement	of	educational	purpose.
Changing	Tracking	Groups
must	not	put	the	seal	of	the	Department	of	Education	on	any	verification	documents.
The	one	exception	is	that	schools	must	use	the	exact	language	provided	in	the	<Statement	of	Educational	Purpose=	for
students	who	are	placed	in	verification	tracking	groups	V4	or	V5.	This	does	not	include	the	accompanying	notary9s
certificate	of	acknowledgment;	for	that	the	school	may	use	some	other	form,	such	as	the	one	its	state	uses.
Income	Information	for	Tax	Filers
As	already	noted,	the	importation	of	IRS	tax	data	(FTI)	via	the	FA-DDX	serves	as	verification	documentation.	Applicants
and	contributors	will	not	see	or	be	given	the	option	to	change	FTI	imported	directly	from	the	IRS	via	the	FA-DDX.	Data
transferred	in	this	manner	is	considered	verified,	but	there	may	be	other	data	elements	that	must	still	be	verified	with
additional	documentation.
FAFSA
Information
Acceptable	Documentation
(a)	Adjusted
Gross
Income
(AGI)
(b)	Income
Earned	from
Work
(c)	U.S.
Income	Tax
Paid
(d)	Untaxed
Portions	of
IRA
Distributions
(e)	Untaxed
Portions	of
Pensions
(f)	IRA
Deductions
and
Payments
(g)	Tax
Exempt
Interest
Income
(h)
Education
Credits
(i)	Foreign
Income
Exempt
from	Federal
Taxation
Items	(a)	through	(h),	if	transferred	directly	from	the	IRS	and	unchanged,	do	not	need	to	be	verified.
When	information	is	not	transferred	from	the	IRS,	and	for	item	(i),	the	following	documentation	is
sufficient	for	verification:
(1)	A	transcript	obtained	at	no	cost	from	the	IRS	or	other	relevant	tax	authority	of	a	U.S.	territory
(Guam,	American	Samoa,	the	U.S.	Virgin	Islands)	or	commonwealth	(Puerto	Rico	and	the	Northern
Mariana	Islands),	or	a	foreign	government,	that	lists	2023	tax	account	information	of	the	tax	filer;	or
(2)	A	signed	copy	of	the	income	tax	return)and	the	applicable	schedules	that	were	filed	with	the	IRS
or	other	relevant	tax	authority	of	a	U.S.	territory,	or	a	foreign	government	that	lists	2023	tax	account
information	of	the	tax	filer.
(3)	If	item	(d)	or	(e)	contains	a	rollover,	a	signed	statement	confirming	the	amount	of	the	rollover	in
the	untaxed	pension	or	IRA	distribution.	Note	that	even	if	(d)	or	(e)	are	transferred	as	FTI,	rollovers
still	need	to	be	verified	as	they	are	manually	entered.
Qualified	rollovers	from	one	retirement	account	to	another	are	not	taxable,	and	they	should	not	be	counted	as	untaxed
income	(Untaxed	portions	of	IRA	distributions	(d)	or	Pensions	(e)	above).	Since	neither	a	tax	transcript	nor	FTI	transferred
via	the	FA-DDX	identifies	rollovers,	you	must	get	documentation	from	the	tax	filer.	This	could	be	a	signed	statement	with
the	rollover	amount	or	a	notation	by	the	filer	on	the	tax	transcript	or	return	that	includes	the	word	<rollover=	beside	any
applicable	item,	like	the	instruction	the	IRS	gives	for	Form	1040.	The	annotation	must	be	signed	and	dated	by	the	filer.
See	VI-Q4	on	the	Program	Integrity	Questions	and	Answers	3	Verification.
Income	Information	for	Non-Tax	Filers
FAFSA
Information
Acceptable	Documentation
Income
Earned	from
Work
For	an	individual	who	has	not	filed	and,	under	IRS	or	other	relevant	tax	authority	rules	(e.g.,	the	Republic
of	the	Marshall	Islands,	the	Republic	of	Palau,	the	Federated	States	of	Micronesia,	a	U.S.	territory	or
commonwealth	or	a	foreign	government),	is	not	required	to	file	a	2023	income	tax	return4
(1)	A	signed	and	dated	statement	certifying4
a.	That	the	individual	is	not	required	to	file	a	2023	income	tax	return;	and
b.	The	sources	and	amounts	of	earnings,	other	income,	and	resources	that	supported	the	individual(s)
for	the	2023	tax	year;
(2)	For	individuals	without	a	Social	Security	number	(SSN),	Individual	Taxpayer	Identification	Number
(ITIN),	or	Employer	Identification	Number	(EIN),	that	they	do	not	have	an	SSN,	ITIN,	or	EIN;
(3)	A	copy	of	IRS	Form	W-2	for	each	source	of	2023	employment	income	received	or	an	equivalent
document;	and
(4)	Except	for	dependent	students,	verification	of	non-filing)for	individuals	who	would	file	a	return	with
a	relevant	tax	authority	other	than	the	IRS	dated	on	or	after	October	1,	2024.
For	non-tax	filers/you	must	request	a	W-2	form	for	each	source	of	2023	employment	income	and	a	signed	statement
certifying	that	the	person	has	not	filed	and	is	not	required	to	file	a	2023	tax	return.	You	must	also	get	a	signed	statement
giving	the	sources	and	amounts	of	the	person9s	income	earned	from	work	not	found	on	W-2s.	Students	may	sign	on	a
nonfiling	spouse9s	behalf.
For	residents	of	the	Freely	Associated	States,	a	copy	of	the	wage	and	tax	statement	from	each	employer	(substitute	for	W-
2s)	and	a	signed	statement	identifying	any	other	employment	income	for	the	year	not	identified	on	the	wage	and	tax
statement	is	acceptable.	Persons	from	a	U.S.	territory,	commonwealth,	or	a	foreign	country	who	are	not	required	to	file	a
tax	return	can	provide	a	signed	statement,	as	well	as	any	supporting	documentation	they	might	have	(e.g.,	a	form
comparable	to	a	U.S.	W-2),	certifying	their	income.
The	collection	of	documentation	to	verify	income	earned	from	work	is	used	to	determine	if	the	applicant	(and	the
applicable	spouse	or	parent)	was	required	to	file	a	U.S.	income	tax	return	(or	a	return	with	a	relevant	tax	authority)	for	the
2023	tax	year.	If	the	individual	should	have	filed	but	failed	to	do	so,	that	is	conflicting	information	that	you	must	resolve.
If	a	W-2	is	not	Available
If	an	individual	who	is	required	to	submit	an	IRS	Form	W-2	did	not	save	a	copy,	they	should	request	a	replacement	W-2
from	the	employer	who	issued	the	original.	A	W-2	transcript	from	the	IRS	is	also	acceptable	though	it	generally	is	not
available	until	the	year	after	the	W-2	information	is	filed	with	the	IRS	(e.g.,	2025	for	2023	information	filed	in	2024).	If
they	are	unable	to	obtain	one	in	a	timely	manner,	you	may	permit	them	to	provide	a	signed	statement	that	includes	the
AGI	and	Income	Tax	Documentation
34	CFR	668.57(a)
amount	of	income	earned	from	work,	the	source	of	that	income,	and	the	reason	why	the	W-2	is	not	available	in	a	timely
manner.
Family	Size
Since	family	size	is	based	on	the	number	of	individuals	listed	and	claimed	on	the	IRS	tax	return,	if	transferred	directly
from	the	IRS	and	used,	family	size	does	not	need	to	be	verified.	However,	when	information	is	not	transferred	from	the
IRS,	or	if	the	applicant	updated	their	family	size	when	presented	with	the	opportunity	to	do	so	on	their	FAFSA,	the
following	documentation	is	sufficient	for	verification:
A	statement	signed	by	the	applicant	and,	if	the	applicant	is	a	dependent	student,	by	one	of	the	applicant's	parents,
that	lists	the	name	and	age	of	each	family	member	for	the	2025326	award	year	and	the	relationship	of	that	family
member	to	the	applicant.
For	a	dependent	student,	you	don9t	have	to	verify	family	size	in	the	following	situations:
The	family	size	is	reported	as	two	with	a	single,	divorced,	separated,	or	widowed	parent;	or
The	family	size	is	reported	as	three	with	parents	who	are	married	or	are	unmarried	and	living	together.
For	an	independent	student,	you	don9t	have	to	verify	family	size	in	the	following	situations:
The	family	size	is	reported	as	two	if	the	student	is	married;	or
The	family	size	is	reported	as	one	if	the	student	is	single,	divorced,	separated,	or	widowed.
Additionally,	you	don9t	need	to	verify	family	size	if	the	applicant	manually	updated	their	family	size	and	the	number	is	the
same	as	the	family	size	derived	from	data	transferred	directly	from	the	IRS.
Keep	in	mind	that	family	size	needs	to	align	with	the	answers	to	the	relevant	dependency	status	questions,	such	as	the
one	about	having	dependents	other	than	a	spouse.	If	verification	reveals	that	answers	do	not	match,	the	FAFSA	form
needs	to	be	corrected	so	that	the	information	is	in	alignment.
Identity	and	Statement	of	Educational	Purpose
Students	should	appear	in	person	at	your	school	and	present	a	valid,	unexpired,	government-issued	photo	identification
(ID)	such	as	a	U.S.	passport,	a	driver9s	license,	or	other	state-issued	ID.	<Unexpired=	means	the	ID	has	not	expired	at	the
time	it	is	checked,	even	if	it	will	expire	before	the	end	of	the	award	year.	A	valid	government-issued	photo	identification	is
one	issued	by	the	U.S.	government,	any	of	the	50	States,	the	District	of	Columbia,	the	Commonwealth	of	Puerto	Rico,	a
federally	recognized	American	Indian	and	Alaska	Native	Tribe,	American	Samoa,	Guam,	the	Virgin	Islands,	the
Commonwealth	of	the	Northern	Mariana	Islands,	the	Republic	of	the	Marshall	Islands,	the	Federated	States	of	Micronesia,
or	the	Republic	of	Palau.
You	must	maintain	an	annotated	copy	of	that	ID	that	includes	the	date	it	was	received	and	the	name	of	the	person	your
school	authorized	to	receive	it.	Your	school	may	determine	which	of	its	staff	are	authorized	to	review	an	applicant9s
identity.	We	recommend	that	the	person(s)	be	full-time	staff	and	the	school	keep	a	record	of	who	they	are.
The	following	are	not	sufficient	for	identity	verification:
An	ID	issued	by	a	state	university	or	college.
A	military	ID	(18	U.S.	Code	§	701	prohibits	it	from	being	photocopied).
Family	Size	Documentation
34	CFR	668.57(b)
entity	confirming	to	the	school	that	the	individual	who	completed	the	FAFSA	form	and	was	selected	for	verification	is	the
person	signing	the	Statement	of	Educational	Purpose.
Immigrants	and	Tax	Filing
Immigrants	are	not	exempt	from	tax	filing.	The	IRS	is	more	concerned	whether	a	person	is	a	resident	or	nonresident
rather	than	a	legal	or	illegal	alien.	An	alien	is	anyone	who	is	not	a	U.S.	citizen	or	national.	A	resident	alien	is	one	who
either	is	a	permanent	resident	or	has	resided	in	the	U.S.	for	a	specific	minimum	amount	of	time	(has	met	the	substantial
presence	test).	All	others	are	nonresident	aliens.	Resident	aliens9	income	is	generally	subject	to	tax	in	the	same	manner
as	U.S.	citizens9,	and	they	file	Form	1040.	Nonresident	aliens	who	are	required	to	file	a	return	submit	Form	1040NR,	which
is	acceptable	documentation	for	verification.
Immigrants	who	do	not	have	an	SSN	and	are	unable	to	get	one	can	apply	with	the	IRS	for	an	individual	taxpayer
identification	number	(ITIN).	The	ITIN	is	only	for	tax	purposes.	It	does	not	authorize	a	person	to	work,	endorse	his	or	her
legal	status,	or	entitle	them	to	the	earned	income	credit	or	Social	Security	benefits.
See	the	IRS9s	
Publication	519,	U.S.	Tax	Guide	for	Aliens	at	www.irs.gov	for	more	information.
Interim	Disbursements
Interim	disbursements	are	allowed	either	prior	to	completing	verification	or	after	verification	but	before	receiving	the
corrected	FAFSA	Submission	Summary	or	ISIR.	If	you	have	no	reason	to	question	the	accuracy	of	the	information	on	the
FAFSA	form,	prior	to	completing	verification	you	may	at	your	discretion:
Make	one	disbursement	of	Pell	and	FSEOG	funds	for	the	applicant9s	first	payment	period;
Permit	FWS	employment	for	the	first	60	consecutive	days	after	the	student	enrolls	for	the	award	year;	or
Originate	but	not	disburse	a	Direct	Subsidized	Loan.
If	verification	results	in	changes	to	the	FAFSA	information	that	you	determine	will	not	alter	award	amounts,	you	may	at
your	discretion	also	disburse	a	Direct	Subsidized	Loan	prior	to	receiving	the	corrected	valid	FAFSA	Submission	Summary
or	ISIR	(defined	as	a	FAFSA	Submission	summary	or	ISIR	on	which	all	the	information	reported	on	a	student9s	FAFSA	form
is	accurate	and	complete	as	of	the	date	the	application	is	signed).
Overpayments	From	Interim	Disbursements
If	you	make	an	interim	disbursement	of	Pell	or	FSEOG	funds	prior	to	verification	and	the	student9s	eligibility	for	Title	IV
funds	changes	after	you	complete	verification,	your	school	is	liable	for	any	resulting	overpayment.	If	you	can9t	eliminate	it
by	reducing	subsequent	disbursements	or	having	the	student	return	the	money,	your	school	must	use	its	own	funds	to
Verification	for	Confined	or	Incarcerated	Individua ls
34	CFR	Part	668	Subpart	P
Dear	Colleague	Letter	GEN-24-10
Interim	Disbursements
34	CFR	668.58