In two separate Electronic Announcements, the U.S. Department of Education (ED) detailed significant changes in the Federal Student Aid identity verification process. These changes affect how schools handle verification for those students who are already selected, or who should be selected, for V4 or V5 verification. While temporary, they will impact the way financial aid professionals process verification in the coming months. We’ve pulled key takeaways and our recommendations for processing records today.
ED Delays Some V4/V5 Verification Until Later This Year
ED has experienced delays implementing the 2024/25 identity verification selection process for potential fraud. As a result, some ISIRs indicating V4 or V5 verification selection will not be available until later this year. These delays will require schools to adapt their processes, including using ED’s new AHSI25OP message class (more on this shortly) and ensure disbursement of aid includes appropriate verification.
Using the AHSI250P Message Class for Verification
ED has created a message class AHSI25OP file of students who will likely undergo identity verification and are providing the list via the SAIG (Student Aid Internet Gateway) mailbox. The first file was released in mid-July 2024, and schools will receive updated lists every two weeks thereafter.
It’s critical for schools to begin reviewing the AHSI25OP file to identify students flagged for potential fraud.
Once identified, we recommend that schools request the necessary documentation from students to complete the V4 or V5 verification before disbursing any Title IV aid. These additional verification steps reduce the risk of needing to refund Title IV aid later.
Reporting Verification of Identity Results
Schools are required to report the verification of identity results for students selected for V4 or V5 verification. This reporting must be done using the Verification of Identity function within the FAFSA Partner Portal (FPP). However, this is yet another item that has been delayed and is not currently operational. Therefore, ED has adjusted the reporting deadlines. Schools must report results within 60 days of requesting documentation from students, or within 30 days of when the Verification of Identity function becomes available — whichever comes later.
Best Practices for Schools
If a school completes V4 or V5 verification for a student prior to their official selection, especially for those receiving Pell Grants, McClintock and Associates recommends reporting the student’s verification status in COD with a “V” code. The “V” code signifies that the school has already verified the student’s identity.
Minimize Errors During the Verification Transition
By actively using the AHSI25OP file and following the new guidelines for reporting, schools can maintain compliance with the verification process and minimize the risk of financial aid errors. If your school has any questions about these updates or how to manage the identity verification process for the 2024/25 award year, please reach out to our team at McClintock and Associates for guidance.
