ChapterTitle: Completing the Verification Process
Section: Verification Status Codes
When you disburse a Federal Pell Grant award, you must report the
student's verification status when you report the payment to ED.
THIS IS REQUIRED EVEN IF THE STUDENT'S APPLICATION
WAS NOT SELECTED FOR VERIFICATION. Proper reporting of
the student's verification status shows that the verification
procedures have been followed and allows ED to gather information
on the impact and effectiveness of the verification requirements.
The codes for reporting verification status are discussed in detail
below. The portion of the SAR that is used for reporting verification
status is shown to the right.
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Verification was not required for this applicant, and you did not
verify any items. (If verification wasn't required, but you verified
some of the student's information anyway, you would not use the
"N" code. Instead, you should use one of the other codes as
The application was verified and was accurate. You paid on that
Verification is required, but the applicant has not yet completed
verification. A first disbursement of no more than half of the award,
has been made. Verification MUST be completed before the next
disbursement may be made and, when you make that disbursement,
you must enter a different verification code on that student's next
document/record, to reflect the verification status under which the
applicant was finally awarded.
If a student's Federal Pell data record still shows a "W" code after
the Pell deadline has passed, that student's award eligibility will be
dropped, or "zeroed out," from the Federal Pell payment system.
The school will not receive Pell funds for the student, and funds
already disbursed must be repaid in accordance with the
overpayment procedures detailed in Chapter Five.
The application was verified and found to be incorrect. However,
the discrepancy was within the tolerance and the student was paid
based on the uncorrected application data. (See the "Tolerance
Option Instead of Correcting" section in this chapter.) This code
also applies to applicants who are exempt from verification under
one of the allowable exclusions. (See Chapter One, "Basic
The application was verified and was shown to be incorrect. You
recalculated the EFC, and found that the recalculated award would
be the same or higher than the original award. You paid based on
the original EFC, without requiring the application to be corrected
and reprocessed. (If you choose to pay the higher award according
to the recalculated EFC, the application must be corrected and
reprocessed using an "R" code on the payment voucher. If your
calculation is wrong, you will be liable for any overpayment.)
The application was verified and was found to be incorrect; it was
corrected and reprocessed for that reason. You paid the applicant
based on the reprocessed application.
If a student makes additional errors in correcting and resubmitting
an application and the reprocessed output document is therefore still
not valid for payment, you must have the student make the needed
corrections and reprocess the application again. The "R" code still
applies. (If the additional errors fall within one of the tolerance
options, the applicant may receive payment without again
reprocessing the application. In this case, use the "T" code.)
You should also use an "R" code if the applicant voluntarily
corrected and reprocessed the application, without being required to
do so. An "R" code applies only to an application that has been
corrected and reprocessed. You should never use the "R" code on
the output of a student's original application (also called an 01
S--Selected, Not Verified
The application was selected for verification but was not verified
because you have already verified at least 30 percent of your total
applications for federal student assistance or because you are
participating in the IQA Program (see p. 2).