Federal Student Aid (FSA) has announced significant changes to identity verification requirements that are already affecting institutions nationwide. Because fraud prevention is one of the current administration’s top priorities, schools will see a sharp increase in V4 verifications—particularly for first-time Title IV applicants this summer. Alongside this increase, FSA has introduced revised verification options.
Understanding the Changes
As part of a broader initiative to combat identity theft and fraud in federal student aid programs, FSA is developing enhanced screening processes for all FAFSA® applicants. While these comprehensive measures are still being finalized, the Department has already adjusted its fraud risk assessment methods, resulting in more students being flagged for V4 verification.
FSA has revised its identity verification documentation requirements, effective June 6, 2025. These changes apply to all students selected for V4 or V5 verification, including those selected before the effective date.
Three Key Documentation Updates
1. Statement of Educational Purpose No Longer Required
Schools are no longer required to obtain a Statement of Educational Purpose from students selected for V4 or V5 verification.
2. Video Call Verification Now Accepted
Students who cannot appear in person for identity verification can now present their identification through a video call. When using this option, institutions must:
- Maintain a scanned copy of the identification documentation presented
- Document the date of presentation
- Record the name of the authorized representative who reviewed the documentation
3. Alternative Verification Methods
FSA has expanded acceptable verification methods to include:
- Verification by entities compliant with NIST IAL2 (National Institute of Standards and Technology Identity Assurance Level 2) standards
- For incarcerated students, verification by a responsible official at a confinement facility
What This Means for Your Institution
The increase in V4 verifications will likely strain financial aid offices—especially during peak processing periods. At the same time, institutions must adapt to the new verification methods while maintaining compliance and fraud prevention standards.
Key areas requiring immediate attention:
- Review and update your verification policies and procedures to incorporate these new options
- Train staff on video verification protocols and documentation requirements
- Prepare for increased verification volume by assessing current capacity and workflows
- Strengthen fraud detection processes and ensure clear procedures for reporting suspected fraud to the Office of Inspector General
- Develop clear communication strategies for students regarding the new verification options
Looking Ahead
As FSA continues developing its comprehensive fraud prevention framework for fall 2025, institutions should expect additional guidance and potentially more changes. Maintaining flexible, compliant processes will be essential for navigating this evolving landscape.
FSA has emphasized institutions’ ongoing responsibility to resolve conflicting information on the FAFSA and report potential fraud. These responsibilities remain unchanged despite the new verification options.
How We Can Help
At McClintock & Associates, we understand that implementing regulatory changes while managing increased verification volume presents significant operational challenges. Our Financial Aid Compliance team—which includes 10 financial aid veterans and 7 Certified Financial Aid Administrators® (FAAC)—brings deep expertise in Title IV compliance and institutional operations.
With regulations evolving rapidly, having experienced guidance can make the difference between scrambling to comply and implementing smooth, efficient processes.
Ready to ensure your verification processes are fully compliant and prepared for increased volume?
Schedule a consultation today or contact our Financial Aid Compliance team to discuss how we can support your institution through these changes.
Click to view the complete FSA announcement and additional resources
