Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

If the Student Fails to Provide Documentation

AwardYear: 1997-1998
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 31, 1998, whichever is earlier. Campus-based,
Direct Subsidized Loan, and Federal Stafford Loan applicants must
complete verification within the deadlines the school establishes.
Factors constituting completed verification and consequences of a
student's failure to complete verification vary among the federal aid
programs.


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]]
[[34 CFR 668.60(b)]]
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. If a Direct Loan
school has requested or drawn down funds in anticipation of
completing verification by the established deadline, the school
should follow the procedures in the cash management regulations
(668.166) and in Chapters 6 and 7 of the 1996-97 Direct Loan
School Guide.

Last Modified: 07/29/1998