Government programs impose eligibility requirements to balance the goals of improving welfare while minimizing waste. We study the impact of eligibility monitoring in the context of Federal Application for Federal Student Aid (FAFSA) submissions, where students may be subject to "verification" requirements that require them to confirm…

The Free Application for Federal Student Aid (FAFSA) unlocks access to federal financial aid programs and anywhere from 17 million to 21 million postsecondary students complete the FAFSA annually. A significant portion of these students cannot receive their aid without completing an additional, lengthy audit-like process called verification to…

For decades, the Free Application for Federal Student Aid (FAFSA) forms were processed electronically by the legacy Central Processing System. In 2021 the Office of Federal Student Aid (FSA) initiated a system development effort and in December 2023 deployed a new system to process forms for the 2024-2025 school year. However, student aid…

This hearing of the Committee on Health, Education, Labor, and Pensions examines reauthorizing the Higher Education Act, focusing on simplifying the free application for federal student aid and reducing the burden of verification. The following opening statements were presented: (1) Honorable Lamar Alexander, Chairman, Committee on Health,…

The Free Application for Federal Student Aid (FAFSA) is the entry ramp to federal grants and loans that many students depend on to afford college. Congress passed the FAFSA Simplification Act in 2020 in part to make it easier to apply for federal aid. However, Education's rollout of the new FAFSA has suffered from numerous challenges and delays.…

The objective of this inspection was to describe Federal Student Aid's (FSA) control activities over institutional processes for completing verification and reporting verification results in accordance with Federal requirements. The inspection covered award years 2016-2017 and 2017-2018 (July 1, 2016, through June 30, 2018). It was found that FSA…

Every year, the U.S. Department of Education selects hundreds of thousands of low-income students to provide additional documentation to corroborate their financial aid eligibility in a process known as verification. Though many are concerned about the potential deleterious effects of being selected, to date, studies are limited to descriptive…

Every year, the U.S. Department of Education selects hundreds of thousands of low-income students to provide additional documentation to corroborate their financial aid eligibility in a process known as verification. Although many are concerned about the potential deleterious effects of being selected, to date, studies are limited to descriptive…

The U.S. Department of Education (Department) Office of Inspector General (OIG) annual plan identifies the audits, inspections, and other activities that the OIG intends to undertake to assist the Department in fulfilling its responsibilities to America's citizens and students. The FY 2024 Annual Plan details the assignment areas they plan to…

Emerging regulations require higher education financial aid staff to handle many tasks. Complying with these regulations and participating in mandated compliance audits are complex processes that require numerous departments to work in concert. This article discusses what steps colleges and universities can take to improve their compliance audits.…

The University of Minnesota Twin Cities completed a project that used degree audit data to project expected graduation terms for students. By working together within our organization, Academic Support Resources, in partnership with colleges throughout the university, the new process was implemented. This article will explore the factors in place…

The objective of this audit was to determine whether Federal Student Aid (FSA) ensured that: (1) its total and permanent disability (TPD) discharge process operated in accordance with Federal program requirements; and (2) accurate information on student loan discharges was entered into FSA's system of records. The audit covered TPD accounts that…

Following the suspension of the Internal Revenue Service Direct Retrieval Tool (IRS DRT), the U.S. Department of Education provided postsecondary institutions with flexibility to accept alternative documentation when verifying students who completed the Free Application for Federal Student Aid (FAFSA). To understand the impact, the National…

The Department of Education (Education) provided over $122 billion in grants, loans and work study funds to help students pay for college at about 6,000 schools in fiscal year 2017. Education is responsible for certifying that these schools are eligible for and capable of properly administering federal student aid funds. Schools are required to…

The objective of this audit was to determine the extent to which the U.S. Department of Education (Department) had processes for ensuring that Federal Student Aid's (FSA) fiscal year (FY) 2020-2024 strategic goals, objectives, and related performance indicators were effective. The audit covered FSA's strategic planning and related activities from…