AwardYear: 1996-1997 ChapterNumber: 3 ChapterTitle: Completing the Verification Process Section: If the Student Fails to Provide Documentation PageNumber: [[Verification deadline]] A Federal Pell Grant applicant selected for verification must complete the process no later than 60 days after the last day of enrollment or August 29, 1997, whichever is earlier. Campus-based, Direct Subsidized Loan, and Federal Stafford Loan applicants must complete verification within the deadlines the school establishes. The factors that constitute completed verification vary among the federal student aid programs, as do the consequences of a student's failure to complete verification. Defining "Completed" Verification For the Federal Pell Grant Program, the student has completed verification when he or she has corrected the data or has shown, as required, that the application data are correct. In addition to all verifying documentation, the school must also have on file the final and valid federal output document, showing the official EFC. For the campus-based, Direct Subsidized Loan, and Federal Stafford Loan programs, the student has completed verification when he or she has submitted all requested documentation to the school. The school must also have on file an output document that shows the student's application data were processed through the CPS at least once. (The output document need not be final or signed by the student). The Consequences of Failing to Complete Verification Under the Federal Pell Grant Program, if an applicant does not complete verification by the established deadline, he or she forfeits the Federal Pell Grant for the award year; either the student or the school must repay to the Department any funds already disbursed. In accordance with the overpayment procedures detailed in Chapter Five, "Overpayments, Referrals, and Suspected Fraud," it is the school's responsibility to return any overpayment to the Federal Pell Grant Program that cannot be collected from the student. [[If verification is not completed]] Under the campus-based, Direct Subsidized Loan, and Federal Stafford Loan programs, if an applicant fails to provide the required documentation by the established deadline, you MUST NOT do any of the following: - DISBURSE additional FSEOG or Federal Perkins Loan funds to the applicant (funds already disbursed must be repaid in accordance with the overpayment procedures detailed in Chapter Five) - CONTINUE THE APPLICANT'S EMPLOYMENT in an FWS job (funds already disbursed may need to be repaid, in accordance with the overpayment procedures detailed in Chapter Five) - ORIGINATE a Direct Subsidized Loan or CERTIFY a Federal Stafford Loan application for the applicant (you may already have done so before verification was completed, but you may NOT do so after the verification deadline) - DISBURSE Direct Subsidized Loan proceeds or DELIVER Federal Stafford Loan proceeds to the applicant. Direct Loan schools must return funds electronically to the Direct Loan Servicing Center. (Ideally, Direct Loan schools should not request funds until the verification process is complete.) For Federal Stafford Loans, schools must return to the lender, within 45 days, any loan proceeds payable to the applicant. |