Virginia Highlands Community College. Financial Aid Department. Policy and Procedure Manual

Transcription

1 Virginia Highlands Community College Financial Aid Department Policy and Procedure Manual

2 Table of Contents TABLE OF CONTENTS... 2 GENERAL KNOWLEDGE... 4 APPLYING FOR FEDERAL AID... 4 Ways to file the FAFSA... 4 FAFSA on the Web... 4 Paper FAFSA... 4 Dependency Status... 4 Eligibility... 5 FAFSA Results... 5 FINANCIAL NEED... 5 WHAT HAPPENS NEXT... 6 IMPORTANT DATES & DEADLINES... 6 TYPES OF FINANCIAL AID... 7 GRANTS... 7 Grants... 7 College Policy for Grants:... 7 Grant Types... 7 Alternative Loans... 8 SCHOLARSHIPS... 8 Foundation Scholarships... 9 Tobacco Scholarships....9 AIMS Scholarships.. 9 SATISFACTORY ACADEMIC PROGRESS SAP... What Happens if Students Do Not Meet SAP... SAP Appeal... AWARDING, PAYMENT, DISBURSEMENT, AND REFUNDS AWARDING Fall and Spring Awarding PAYMENTS REFUND CHECKS DISBURSEMENTS WITHDRAWING AND DROPPING CLASSES DROPPING VS. WITHDRAWING Dropping a Class Withdrawing From a Class Total Withdrawal and Return of Federal Financial Aid Policy Administrative Withdrawals-Dropped classes Affects Withdraws/Dropping have on Future Financial Aid VERIFICATION What is Verification? Selection after Financial Aid Disbursement Late FAFSA Forms and Verification Items Required Verification Items Checklist Items

3 VERIFICATION PROCEDURES Verification Flags PACKAGING WHAT IS PACKAGING EXAMPLES OF PACKAGING STATUSES No FAFSA Packaged Ready to Package Missing Information Waiting on Verification Items Need Checklist Item Only

4 General Knowledge Section 1 Applying for Federal Aid S tudents applying for Federal Student Aid are required to file a Free Application for Federal Student Aid (FAFSA). Students should complete the FAFSA each year when they and/or their parents file their taxes. Ways to file the FAFSA There are two ways that a student can submit the FAFSA form - either via the web or by paper form. VHCC encourages students to apply via the Web. Regardless of which way a student submits the form, he/she will receive the same results and will have the same chance for being selected for verification. FAFSA on the Web Students can file the FAFSA on the web at If they do not already have one, the student and, if dependent, one parent will need to request a PIN number. This number allows the student and/or parents to electronically sign the FAFSA and to access stored information. Filing on the Web is the recommended way to file for the FAFSA. Students are eligible to do the renewal FAFSA. Instructions and help links are available for each question. This method immediately identifies potential errors. This method prompts the student to make corrections when necessary. Once submitted, the application goes directly to the U.S. Department of Education s Central Processing System. This method normally takes less than 2 weeks for VHCC to receive the results. Paper FAFSA Students will need to come to the Financial Aid Office to pick up a form or request to have one mailed to them. Student will need to mail the form to U.S. Department of Education s Central Processing System. This method takes longer to process typically 4-6 weeks. This method does not have detailed instructions for each question or other online help sources. Dependency Status To determine dependency status, a student must answer the questions in section 2 of the FAFSA which are listed below. If yes can be answered to any of the questions the student can skip the parental section of the FAFSA. If he/she answers no to all of the questions, the student will need to provide the parents information. If a student does not live with his/her parents or is not being claimed on their taxes, this does not make the student independent. Again, to be independent, a student must answer yes to one of the questions listed below: 1. Will the student be 24 years of age by December 31 of the year completing the form? 2. Is the student married? 3. Is the student a graduate student (has earned a bachelor s degree)? 4

5 4. Is the student a veteran of the U.S. Armed Forces or currently serving on active duty? 5. Does the student have children who he/she provides more than half of the support? 6. Does the student have dependents (other than children) that he/she gives more than half of the support to and will continue to do so through June 30 of the award year? 7. At any time since the student turned age 13, were both of the student's parents deceased, was the student in foster care or was the student a ward/dependent of the court? 8. Is/was the student an emancipated minor as determined by a court in your state of legal residence? 9. Is/was the student in legal guardianship as determined by a court in your state of legal residence? 10. At any time on or after July 1, 2008, did the high school or school district homeless liaison determine that the student was an unaccompanied youth who was homeless? 11. At any time on or after July 1, 2008, did the director of an emergency shelter or transitional housing program funded by the U.S. Department of Housing and Urban Development determine that the student was an unaccompanied youth who was homeless? 12. At any time on or after July 1, 2008, did the director of a runaway or homeless youth basic center or transitional living program determine that the student was an unaccompanied youth who was homeless or was self-supporting and at risk of being homeless? Eligibility To receive any financial aid at VHCC, a student must meet the following criteria: Have a high school diploma or GED If a student does not have a high school diploma or GED, they must pass an ability-to-benefit (ATB) Compass Test Be enrolled or accepted as a regular student working toward a degree or certificate in an eligible program. (Note: The program length must be at least 16 credits.) Be a U.S. citizen or an eligible non-citizen (permanent resident) Have a Social Security Number Meet satisfactory academic progress standards Not be in default on federal student loans Do not owe a federal grant overpayment (for example: if you withdrew from school and received all W s and did not repay financial aid funds that were not earned) Comply with Selective Service registration FAFSA Results A Student Aid Report (SAR) is mailed or ed to all students once the FAFSA has been processed. SARs include all the information that they put on their FAFSA form as well as their Expected Family Contribution (EFC). If the student s EFC determines if they will be eligible for PELL, assuming he/she meets VHCC s requirements and does not have a prior Bachelor s degree. VHCC also uses the EFC to determine the amount of other federal and state aid that a student is eligible to receive. For more information on this topic, see Section 2 on Types of Financial Aid. Financial Need o calculate financial need, you first need to determine the student s Cost of Attendance (COA). T This includes tuition, fees, room and board, books, supplies, transportation, and personal expenses. You also need the student s Expected Family Contribution (EFC) which is calculated when the student files the FAFSA. COA EFC = Financial Need 5

6 When awarding a student, VHCC uses the EFC and the VHCC award schedule to determine how much Federal and State aid a student is eligible to receive. However, for all types of grants the total aid cannot exceed the amount of Financial Need the student demonstrates. The total aid package cannot exceed the student s COA. What Happens Next n order for VHCC to receive the FAFSA results, the student must be admitted to the college and I have our school code (007099) on their FAFSA form. Once the student s FAFSA results are received several responses may occur: 1. Student will receive a Missing Information Letter (MIL) if any of the following occur: a. If the student is selected for Verification b. If they need to be placed in a curriculum c. If they need to bring in their taxes d. Proof of Identity e. Proof of prior Bachelor s degree f. Proof of registration with Selective Service g. Proof of Default or Bankruptcy resolution h. And various other documents that need to be provided to the Financial Aid Office because of the way the student completed the FAFSA form 2. Once VHCC receives all missing information, the student s information will proceed through the packaging process. In doing this, he/she will receive one of the following letters: a. A Financial Aid Award Notification (FAN), stating the award amounts. Awards on the letter are based on projected full-time enrollment but some actual awards are prorated based upon enrollment status (full time, ¾ time, ½ time, less than ½ time). b. A Not Eligible Letter which states that the student is not eligible for any grants. Important Dates & Deadlines inancial Aid dates are the same each year. Our priority date for summer semester, April 15, and F for fall, May 1, mean that the students who have submitted their FAFSA and have all information returned to our department by this date will receive the maximum amount of aid they are eligible to receive. To ensure that the priority date is met, students should get in the habit of completing their FAFSA when they complete their taxes. 6

7 Types of Financial Aid Section 2 Grants and Loans tudents must compete the FAFSA form in order to be eligible to receive any grants. S Grants Grants are a type of financial aid that students do not have to repay. Students are awarded grants based on their EFC which is calculated by completing a FAFSA form. All students must also meet our college policies to be awarded any grant. College Policy for Grants: For all grants, a student must demonstrate financial need Grants are not awarded to students with an EFC that exceeds the VHCC award schedule. Must meet VHCC Satisfactory Academic Progress (SAP) policy (see Section 3) Cannot have a bachelor s degree (Federal Policy) Grant Types PELL Award is determined by student s EFC and enrollment (Full Time, ¾ Time, ½ Time, Less Than ½ Time) PELL is projected on Full Time enrollment prior to the end of the add/drop period and is adjusted accordingly based on actual enrollment after the add/drop period has ended Can be used toward tuition, fees, and books SEOG Must be PELL eligible Can be used toward tuition, fees, and books Must have 6 credits or more ACG Must be PELL eligible Must be a US citizen Graduated from high school after January 1, 2005 Must be enrolled in at least 12 credits Must have completed a rigorous high school program Second year students must maintain a 3.0 GPA COMA Must demonstrate financial need Must have 6 credits or more The amount awarded can not exceed tuition and fees Used for tuition and fees ONLY NO books Must be a Virginia resident CSAP Must have 6 credits 7

8 Can be used for tuition, fees, and books Have a computed Expected Family Contribution that is less than one-half of the total cost of attendance Must be a Virginia resident VGAP Must have 12 credits or more Must have had a 2.5 cumulative GPA in high school Must continue to have a cumulative 2.0 GPA while in college Covers tuition, fees, and books Must demonstrate financial need Must be a Virginia resident PTAP Enrollment between 1 8 credits Must demonstrate financial need The amount awarded can not exceed tuition and fees Used for tuition and fees ONLY NO books Must be a Virginia resident Work-Study Must demonstrate financial need Must usually have at least 6 credits Must have a placement form completed Alternative Loans Virginia Highlands Community College participates in the Alternative Student Loan Program. Alternative loans, also called private loans, are offered by lending institutions as an additional source of funds for higher education. These funds are not part of the federal government loan programs; VHCC does not participate in the Stafford or Plus student loan programs. An alternative loan is a good option only after all other financial aid sources have been exhausted. Loan applicants are required to: 1. complete a FAFSA 2. be enrolled in at least 6 credits 3. be admitted to a program of study 4. complete the loan application online to the lender of choice To determine the best lender a student should consider the annual percentage rate (APR), co-signer requirements, loan fees, loan limits, repayment period, income to debt ratio, and grace period offered. For more information concerning these loans, students should contact the lender. VHCC does not suggest a specific lender nor do we endorse one lender over the other. After the lender approves the student s loan, the Financial Aid Office is contacted to certify that the student has completed a FAFSA, enrolled in 6 or more credits and is in a program of study at VHCC. Scholarships cholarships are grants that do not have to be paid back. There are several different categories Sfor scholarships such as, merit based, need based, for specific program plans, for student with special needs, and many more. 8

9 Foundation Scholarships Foundation scholarships are funded by the generous gifts of donors and do not have to be repaid. Students must fill out an application which will be evaluated by the Foundation Office by using the specific guidelines for each scholarship. The Foundation Office will provide to the Financial Aid Office a list of scholarship recipients and the amount of their award each semester. Tobacco Scholarship The Virginia Tobacco Settlement Program assists eligible, former Virginia resident tobacco growers, quota holders, their immediate dependent family members with up to the full cost of tuition to attend credit classes at VHCC, after all other financial aid and scholarships have been exhausted. Students receiving tobacco scholarships to attend credit classes must meet the requirements of Satisfactory Academic Progress (SAP). Family member is defined as the spouse of a former tobacco grower/quota holder, or child of a former tobacco grower holder, or whose grandparent is the grower/quota holder. Quota holder cannot be deceased in order to qualify. Tobacco grower/quota holder is defined as a Virginia resident who is listed by the local Virginia Farm Service Agency office or who can provide documentation of being a quota holder between the indemnification period of 1998 and Virginia resident is defined as a person who has lived in Virginia for the last 12 months and has no ties with any other state including driver s license, tax returns, voter registration, or auto registration. To Qualify: 1. Applicants must apply for the scholarship on-line 2. Applicants must apply for Financial Aid on-line at or complete a paper FAFSA. 3. Applicants must provide proof of eligibility. o o A copy of your family's FSA 156EZ Form and A notarized statement defining your relationship to the quota holder or grower. 9

10 AIMS Scholarship Virginia Highlands Community College is proud to provide financial assistance for students through the Appalachian Inter-Mountain Scholars (AIMS) Higher program, the funds are available for students of Virginia public schools within the VHCC service region, which includes the City of Bristol, Washington County and western Smyth County. This program provides funding for public high school graduates who do not receive enough financial aid to cover the full cost of tuition and fees. Students who receive AIMS Higher funding must remain full-time students during each semester, beginning with the Fall Semester after graduation, and complete their coursework within two years. To continue receiving AIMS Higher funding while enrolled at VHCC, students must maintain a 2.75 GPA and meet all other academic standards required for financial aid recipients. All AIMS Higher recipients also must complete 20 hours of community service during their first year of college. To be eligible for the AIMS Higher Scholarship Program, students must: Be recognized as a Washington County Community Scholar, a Citizen in Action within the Bristol school system, or an AIMS Scholar in Smyth County for at least three of their high school years, including their senior year; and Receive a standard or advanced diploma. Applications are available online on the VHCC website and from Career Coaches and guidance counselors in area high schools. To receive funds through this program, students must meet all eligibility guidelines, complete the AIMS Higher Scholarship application, and complete the financial process. The application deadline is determined by the high school and the VHCC Financial Aid Office. AIMS Higher Scholarships are funded through a grant from the Virginia Tobacco Region Revitalization Commission, with supplemental funding from the VHCC Educational Foundation, and are subject to the availability of funds. Scholarship funds may be used during the Fall and Spring semesters, but are not available during the Summer Term. To assist families in planning for college, VHCC has developed funding guidelines for awarding the AIMS Higher Scholarship. Funding Guidelines Students graduating From high school in: AIMS Higher award will cover: 2017 Up to 18 credit hours per semester 2018 Up to 15 credit hours per semester 2019 Up to 12 credit hours per semester 2020 Up to 12 credit hours per semester 2021 & later Program under development These guidelines are based on the projected availability of funds and are subject to change. 10

11 Satisfactory Academic Progress Office of Financial Aid INTRODUCTION VIRGINIA HIGHLANDS COMMUNITY COLLEGE SATISFACTORY ACADEMIC PROGRESS REQUIREMENTS FOR FINANCIAL AID RECIPIENTS Section 3 Abingdon, VA The Education Amendments of 1986 stipulate that no advance of Title IV Academic Competitiveness Grant funds may be made to a student unless the educational institution determines that the student is maintaining satisfactory academic progress. Students who fail to maintain satisfactory progress may not receive the following types of financial aid: Federal Pell Grants; Federal Supplemental Educational Opportunity Grants; College Scholarship Assistance Program Grants; Federal Work-Study; Commonwealth Grant; Virginia Guaranteed Assistance Program; Part-Time Tuition Assistance Program Grant; other aid involving Title IV funds; or any other aid program for which satisfactory progress is a requirement. These policies apply only to eligibility to receive financial aid funds. ACADEMIC REQUIREMENTS Financial aid recipients* must make academic progress as follows: Number of semester hours attempted (includes Developmental) Required Grade Point Average (GPA) over *VGAP students must maintain at least a 2.0 GPA at all times. Time-Frame to Complete the Program The Financial Aid Office will review the student s academic progress each semester. Completed grades are A B C D S & R. Incomplete grades are F I U W & X. The Aid Office will also determine if students have completed at least 67 percent of the courses attempted after reaching the mid-point of their course of study. Generally, students will have a 150% time frame to complete their degree, diploma, or certificate. For example, students enrolled in the two-year Education degree program would be allowed to attempt 98 credit hours (i.e., 150 %) to complete the 65 credit hours required for graduation. After attempting 98 credit hours, including transfer credits, student's financial aid eligibility would be terminated for this program. All credit hours attempted at VHCC, whether or not they are completed or passed, are counted toward the maximum time frame. Financial Aid recipients are limited to a total of 30 semester hours in developmental courses. Any developmental credit hours attempted after reaching 30 hours will not be counted in the students enrollment status. NOTIFICATION OF WITHDRAWAL OF AID Students who do not meet SAP eligibility requirements will have their aid terminated. The student is responsible for seeing that the Office of Financial Aid has the correct mailing address at all times. RE-ESTABLISHING SATISFACTORY ACADEMIC PROGRESS Students who have had their financial aid terminated prior to reaching the 150% time frame must re-establish their eligibility for financial aid by successfully completing (2.0 grade point average) six semester hours prior to being reinstated. Consideration of aid depends upon the availability of funds and the number of prior eligible applicants. EXCEPTIONS Students who have mitigating circumstances for not completing their expected minimum credit hours during any semester must notify the Financial Aid Officer in writing. (Withdrawals because of failure are not mitigating circumstances). Students whose grades have not been reported by the instructor, or were reported incorrectly, should contact the financial aid office. RIGHT OF APPEAL A student may direct a written appeal to the Financial Aid Officer within 10 days of notification of termination of aid. Conditions for reinstatement of aid will be determined by the Financial Aid Officer. If the student is not satisfied with the decision, then the appeal may be directed to the Director of Financial Aid. If the student is not satisfied with the decision of the Director, then the appeal may be directed to the Admissions/Financial Aid Committee. The decision of the committee is final. 11

12 Awarding, Payment, Disbursement, and Refunds Section 4 Awarding nitial awards for the fall and spring semesters are processed after the FAFSA is completed, all Ichecklist items are completed, verification is complete if applicable. Summer awards are processed after the student enrolls for classes. Student should keep in mind that audited classes do not count toward your enrollment status and are not covered by financial aid. Fall and Spring Awarding Awards that are made prior to the end of the add/drop period for each semester are based on projected full-time enrollment. After that time, student award amounts will vary based on the number of enrolled credits and will be reduced accordingly if they are not a full-time student. If a student is not meeting satisfactory academic progress (SAP) requirements after spring grades are posted, his/her financial aid awards will be canceled. If a student is not meeting satisfactory academic progress (SAP) requirements after fall grades are posted, his/her financial aid awards will be canceled. Students will receive notification that they do not meet SAP requirements and will be given the opportunity to appeal. Awards will be re-entered for students whose SAP appeals are approved. Status Full Time ¾ Time Half Time Less than ½ Time Enrolled Hours 12 or more credits 9 11 credits 6 8 credits 1 5 credits Payments V irginia Highlands Community College s payment policy requires the student to pay all tuition and fees by the first day of class. If a student is using Financial Aid to pay for classes he/she must have received written notification of the financial aid award from the Financial Aid Office. These students will need to ensure that they have enough aid to cover their total charges. If their financial aid award does not cover the total charges, they will be responsible for the remaining balance which is due by the first day of class. Students with financial aid processed after they register and pay, will be reimbursed for any tuition and fees covered by their award once their aid has been disbursed to the student account. This usually occurs approximately three weeks after the last day to drop courses with a refund. Students who are using their aid to pay for their classes and books do not have to take the award letter to the Business Office. Once they have been awarded, the Business Office can immediately view their financial aid eligibility and will defer the charges that their aid covers. Please note that students will be responsible for any tuition costs that exceed their financial aid award(s) which is due by the first day of class. If they do not satisfy the additional cost at that time they will be dropped from their classes. Partial payments (for example, paying for one class out of several classes or only paying a fractional amount of one class) are not sufficient to hold all classes. Those who fail to pay by the deadline will 12

13 be dropped after the close of business. Payment can be submitted to the Business Office via check, cash, or credit card in person or by credit card on-line. Refund Checks & Disbursements ny aid remaining after tuition, fees, and books are deducted, will be refunded to the students in A the form of a check and mailed to the address on the online student account. Disbursement of federal and state grant funds to student accounts will occur approximately three weeks following the last day to add a class for the semester. Unfortunately, VHCC cannot provide an exact date when financial aid disbursements will be made nor when refund checks will be made available to students. This is due to the fact that there are several parties involved in this process (The Department of Education, the lending institutions, the Financial Aid Office, the Business Office, the State Treasury, and the U.S. Postal Service). The process will unfold as follows. After the last day to drop classes with a refund, the Financial Aid Office will begin revising aid for students who are not full-time since original aid packages were based on a projected full-time enrollment. Once all aid has been revised, disbursements will be requested to the Department of Education (for grants). After funds are received, the Financial Aid Office will disburse aid to the Business Office, where they will deduct tuition, fees, and bookstore purchases before making the refund check requests of the State Treasury. The State Treasury will then generate the refund checks and mail them directly to the student at the address listed on the PeopleSoft Student Information System (SIS). A notification of the disbursement date will be posted on the VHCC website. In approximately 2 weeks after this date, students may expect to receive any refund check that they are entitled to after tuition, and approved charges are deducted. Checks will be mailed to the address of the student listed in the People Soft Student Information System (SIS). 13

14 Withdrawing and Dropping Classes Section 5 Dropping vs. Withdrawing ropped classes never show up on a student s record, they do not pay for them, and VHCC does D not count them toward student enrollment status. Withdrawals stay on their record, VHCC does count it toward student enrollment status, and students may owe funds back to the federal government and/or the College if they withdraw from all courses. Dropping a Class Students may drop classes with a refund through the first 15 percent of the class session. This time frame is called the Add/Drop period or may be listed as the last day to drop with a refund. To drop classes, the student must submit Add/Drop forms to Admissions and Records or complete the drop themselves online at MyVHCC. Dropped classes never show up on their record, students do not pay for them, and VHCC does not count them toward enrollment status. However, a student s financial aid may be reduced when dropping from a class if the enrollment status changes (full time, ¾ time, ½ time, less than ½ time). When a student drops a class and wants to return books, he/she must return the books before they drop the class. The student must show the receipt and do the return by the date specified on the Bookstore receipt. Withdrawing From a Class Students may withdraw from classes without academic penalty through the first 60 percent of the class session. This time frame is listed as the last day to drop without academic penalty. To withdraw from classes, the student must submit Add/Drop forms to Admissions and Records. Withdrawals stay on their record and count toward the enrollment status. Students may owe funds back to the federal government and/or the College if they withdraw from all courses. Students who withdraw frequently run the risk of losing their eligibility in the future. Students who are receiving grants will not see a change in their financial aid if they still have one or more remaining classes. Total Withdrawal and Return of Federal Financial Aid Policy If a student withdraws from ALL classes after the end of the add/drop period but before the last day to drop without academic penalty is receiving COMA, VGAP, or PTAP, their eligibility for those grants will not change. If they are receiving any type of federal aid, such as, PELL, ACG, SEOG, CSAP, HETAP, a portion of their eligibility would need to be returned. The later students wait to withdraw, the less students may owe. Federal law requires us to return part of the student s financial aid if they withdraw from ALL classes after the end of the add/drop period but before the last day to drop without a academic penalty. 14

15 Students will have to repay part of their financial aid that is deemed unearned by the U.S. Department of Education. The specified percentage of funds that students are financially liable to return is based on their last date of attendance for that particular semester. If a student does not repay the portion of financial aid funds for which he/she is responsible then that student will be reported to the federal government, thus becoming ineligible for future financial assistance at any college or university in the United States. Any student with financial aid should discuss their case with a financial aid representative BEFORE they withdraw. It is important to remember that every case is different because each student s situation is based on several factors (i.e. the type and amount of federal aid received, the last date of attendance, tuition, fees, and/or book charges). Administrative Withdrawal Dropped Classes VHCC faculty is required to administratively drop students who do not attend class beyond the last day for a refund. The financial aid officer reviews all Administrative Drop forms to determine if the student receives financial aid and if an enrollment status change has occurred. If an enrollment status change occurs for financial aid students who are administratively dropped, the financial aid officer reduces the award and disburses the reduction to the business office. The business office restores funds to the appropriate federal or state account. The financial aid office mails a letter to the student requesting payment to VHCC for the amount of the reduction. The business office gets a copy of this letter and if payment is not received from the student, the business office will flag the student s account on the Peoplesoft SIS. Affects Withdraws/Dropping have on Future Financial Aid Dropped classes will never affect a student s financial aid since those classes will not show up on the student s records. However, all types of withdrawals can damage their pursuit of Satisfactory Academic Progress. Although withdrawals may not be negative on their academic record, they are considered negative for financial aid purposes. Withdrawals are considered courses attempted, but not completed successfully. Therefore, according to our SAP policy, withdrawals would count against students in the evaluation of the Completion Rate (67%) Rule and the Maximum Time (150%) Rule. As stated above it can also affect a student s eligibility if they had a federal overpayment that they did not satisfy. This could not only affect them at VHCC but could affect them at other college s or university s since they would be reported to the U.S. Department of Education. 15

16 Verification Section 6 What is Verification? erification is a process that needs to be completed by a financial aid administrator. When V performing this process, the financial aid administrator is ensuring that the information the student entered on his/her FAFSA is correct. Students are randomly selected for verification by the CPS or are selected by the College if questionable information is found. Colleges are required to verify at least 30% of the total number of applicants. All students selected for verification will be mailed a missing information letter (MIL) by the College stating the checklist items that they will need to complete, what documentation is required, the deadlines for completing any actions required, and the consequences for missing the deadlines. If applicable, the student will also be sent a Verification Worksheet that he/she must complete and return by the deadlines stated in the letter. VHCC will notify students regarding their eligibility or any changes to their award(s) after verification is complete. Selection after Financial Aid Disbursement Students will occasionally be selected for verification after corrections have been made and/or after we have disbursed part or all of their aid. When this occurs, we will hold off on disbursing any additional funds until after the student has been verified. If they fail to provide us with verification items, we will cancel any remaining disbursements and notify the student that they will have to repay any previously disbursed aid that they are no longer eligible for due to the lack of verification. Students that turn in all verification items will be verified and if no changes are necessary, disbursements will resume as scheduled. However, if we made adjustments that affect the student s eligibility, they will be notified via a new Financial Aid Notification (FAN) and will be disbursed accordingly. Late FAFSA Forms and Verification Items Students typically are not eligible for financial aid if they finish a term or are no longer enrolled. However, they still may submit verification items and receive a late disbursement if the Department of Education has processed a SAR or ISIR with an official EFC while the student was still enrolled and/or within 120 days of the last day of the student s enrollment. Required Verification Items Required items to verify are household size, number in college, adjusted gross income (AGI), U.S. taxes paid, and certain types of untaxed income (social security benefits, child support, IRA deductions, foreign income exclusion, earned income credit, and interest on tax-free bonds). When students are selected for verification, they are required to submit a signed Verification Worksheet. This worksheet contains sections where the student will report the household size, number in college, and untaxed income. Dependent students will also be asked to submit a signed copy of their federal tax return and their parent s federal tax return. Independent students will need to submit a signed copy of their federal tax return and their spouse s, if applicable. Students may also be required to submit documentation for other checklist items as indicated below. AGI and taxes paid are obtained from the student s federal income tax return. If a student has not submitted their taxes and they make over the required minimum (as stated by the IRS), we will not proceed with the verification process until they have filed their taxes. However, if the student makes less than the required minimum stated by the IRS, they will need to enter all sources of income on their Verification Worksheet and submit a copy of their W-2 forms, if available. 16

17 Checklist Items Below is a listing of the different items that you may see on the Financial Aid Status page in SIS and the item(s) that you would need to collect for each. Checklist Item Collect Parent 1040 Student 1040 Parent W2 Student W2 Dependent VWS Independent VWS Curriculum Placement Prior Degree Request to Sign SAR Selective Service Reg Federal Overpayment A Signed Copy of the Parent s Federal Taxes (if married, we need both the mother and father s or step-parent s; if separated but not divorced, we need legal documentation that supports that divorce is being pursued) A Signed Copy of the Student s Federal Taxes (if married, we need the spouse s also) A copy of the parent s W2 form (if married we need both mother and father s or step-parent s) A copy of the student s W2 form (if married, we need the spouse s also; if separated but not divorced, we need legal documentation that supports that divorce is being pursued) Dependent Verification Worksheet completely filled out with student s and parent s signature Independent Verification Worksheet completely filled out with student s signature The student needs to be placed into a curriculum by an academic counselor A signed letter from the student stating that they have a prior degree or that they do not have one (which ever the case may be) The student and/or parent must go on-line and use their PIN to sign the SAR or they can print off the signature page or sign the last page of the SAR and mail it to the federal processor. If the student is a female, we need a written statement stating that with her signature on the bottom. If the student is a male, we will need proof that they registered. If they have not registered, we need a signed written statement stating that it is acceptable to submit their name to Selective Service. Letter from NSLDS or the Department of Education (DOE) stating that overpayment has been 17

18 Discharge to Debtor Ltr Proof of Default Resolve Citizen Status DOB Problem Student, DOB Problem Mother, DOB Problem Father Social Security Card, SSN Problem Father, SSN Problem Mother, Name Problem Father, Name Problem Mother Ability to Benefit Test Drug Conviction SS Benefit Statement, SS Benefit Statement Parent Proof of Veteran Status Correct SAR satisfied Letter from their lender or the DOE stating that all previous federal student loans are not in default and an indication of whether or not they are dischargeable Letter from the DOE stating that all previous federal student loans are not in default Naturalization Form, Alien Registration Form, Green Card, or Birth Certificate DO NOT accept their Passport Birth Certificate Need a copy of the Social Security Card for the person in question The student indicated that they do not possess a high school diploma or GED. They must take an ability to benefit test to qualify for financial aid (Compass). If they do have a high school diploma or GED, they must correct this item on their Student Aid Report and return it to the federal processor. Must fill out the Drug Conviction form A copy of their Social Security Benefit Statement A copy of their DD214 that demonstrates that they were honorably discharged from the U.S. Armed Forces In most cases we can correct the student s SAR/ISIR if they provide us with the needed documentation. However, if the student has a checklist item to sign the SAR, they will also receive a checklist item to Correct SAR and in this case, the student and/or parent must sign their SAR in order for us to process any other required items. 18

19 Verification Procedures hen all necessary verification documentation is submitted by the student, VHCC will begin the W verification process. First, all checklist items will be completed within PeopleSoft SIS. Once this is done, a financial aid administrator will compare worksheets, taxes and other documents to the student s ISIR. Any changes will be made accordingly and then the verification flags updated on the Packaging Status Summary page within PeopleSoft SIS. Upon completion of this process, the student s eligibility for financial aid will be evaluated. Verification Flags Once verification is completed on a student, the Verification Flag field on the Packaging Status Summary is changed from Required to Complete. The Verification Status field is changed from Not Select to either Verified or Tolerance. Verified is utilized when there were no changes to be made or when changes were made and the ISIR has been updated. Tolerance is utilized when minor errors were found that would not significantly change the student s eligibility and therefore, were not corrected. The tolerance amount is $400 or less and corrections or recalculation of the EFC is not necessary. Please note that there is no tolerance for non-dollar items such as household size or number in college. These items must be corrected and submitted to the CPS. 19

20 Packaging Section 7 What is Packaging Packaging is the process of awarding students any financial aid that they are eligible to receive. There are several steps to the process which begins with retrieving the students ISIR (FAFSA information) and running the Missing Information Letter (MIL) process. When this process is run it will determine which students were selected for verification and assign any checklist items that the student needs. Once all checklist items are completed and verifications has been performed, if the student was selected, the following processes are ran: building their financial aid term, running the SAP process, creating the student s budget, awarding the student, and assigning the financial aid notification. Examples of Packaging Statuses T he following are example screen shots of what the Financial Aid Status Page (Home > Administer Financial Aid > Package and Disburse Aid > Inquire 2 > Financial Aid Status) looks like at various times in the packaging and verification processes. Within each screen shot there are colored circles which correspond with a listing that is under the screen shot. The list below contains items to look for on the page to help decipher the stage of the packaging process which will help identify what is needed to complete the process. The main statuses are as follows: 1. No FAFSA 2. Packaged 3. Ready to Package 4. Missing Information 5. Waiting on Verification Items 6. Verification Complete Waiting on Checklist Items 7. Need Checklist Items Only No FAFSA If you enter the students EMPLID and do not receive the Financial Aid Status Page then the student has not completed the FAFSA form. 20

21 Note: You will receive the above error message that states No matching values were found. Packaged This means that the student has either been awarded a grant or sent a No Need communication. 1. Package Status = Complete 2. Sap = Meets SAP 3. Review Status = Complete 4. Verification Flag = Complete 5. Verification Status = Verified or Tolerated 6. Checklist items for ISIR = all marked as Completed 21

22 Ready to Package This means that the student has been verified and has completed all of their Checklist Items. If you see the following then the student is ready to be packaged and will be the next time the process is run: 7. Package Status = Package 8. Review Status = Complete 9. Verification Flag = Complete 10. Verification Status = Verified or Tolerated 11. Checklist items for ISIR = all marked as Completed Note: Once the student is awarded the Package Status will go to Complete. 22

23 Missing Information When a student has missing verification items we will send them a MIL Missing Information Letter stating what they need to bring into the Financial Aid office or what they need to complete before we can package them. When you see the following we are waiting on the initiated item to be sent to us before we can process the verification: 1. Package Status = Applied 2. Review Status = Incomplete 3. Verification Flag = Required 4. Verification Status = Not Select 5. Checklist items for ISIR = Initiated Note: Once the student brings in or completes all Checklist Items the status will go to Complete. Then the student will be verified and the Verification Flag will change to Complete, the Verification Status will be updated to either Verified or Tolerated, and the Review Status will go to Complete. Then once the student is awarded the Package Status will go to Complete. 23

24 Waiting on Verification Items When the student has Initiated Checklist items that pertain to their FAFSA form they are sent a Missing Information Letter. As the students bring in their information we will change the status. We will keep all received in a Pending folder until the others have been turned in. Note: Once the student brings in all their checklist items, then the student will be verified and the Verification Flag will change to Complete, the Verification Status will be updated to either Verified or Tolerated, and the Review Status will go to Complete. Then once the student is awarded the Package Status will go to Complete. 24

25 Need Checklist Item Only If the student has a FAFSA related checklist item they can not be packaged until those items are completed. There are several cases where you will see that the student was not selected for verification but has to complete checklist items. Once all items are completed then they will be packaged. When you see the following the student was not selected for verification but they needed another checklist items to be completed before we can award them: 1. Package Status = Applied 2. Review Status = Incomplete 3. Verification Flag = Not Reqd 4. Verification Status = Not Select 5. Checklist items for ISIR = At least on item is marked as Initiated Note: Once this student completes their Checklist Item the status will be updated to Complete and the Review Status will go to Complete. Then once the student is awarded the Package Status will go to Complete but the Verification Flag and Verification Status will stay like they are. 25