As families file the Free Application for Federal Student Aid -- making sure to get it in before state and institutional deadlines in February and March -- they shouldn't forget about one important, final step.
About one-third of FAFSAs are selected for verification, says Nancy Coolidge, associate director of student financial support at the president's office of the University of California system. The process requires submitting additional documents to the financial aid office in order to support information entered on the form.
Colleges may ask families to send tax return transcripts, siblings' college registration forms, proof of income or other supporting documentation.
Neglect to complete the verification, and students will find themselves without federal financial aid.
"We cannot disburse any aid to you unless you complete verification," says Coolidge.
Those who do complete the verification will see their aid packages increase, decrease or remain unchanged, depending on the information they provide.
While it may sound like a hassle, the verification process shouldn't be daunting, say experts. Here are four things to know about FAFSA verification.
[Watch this video on how to avoid common FAFSA mistakes.]
1. Relax: The biggest misconception among filers is that selection for verification is a slap on the wrist, say experts.
"Students and families should realize that just because you're selected for verification, it's not an indication that you've done anything wrong," says Jesse O'Connell, assistant director for federal relations at the National Association of Student Financial Aid Administrators. "All they're doing is just confirming that the numbers on the FAFSA match up with original documentation."
While some FAFSAs may be verified to clear up inconsistencies, others may be selected randomly.
[Discover the unexpected ways that some colleges may use the FAFSA.]
Some universities, typically small colleges that award a large amount of their own money, verify 100 percent of financial aid applicants, say experts.
2. Be alert: Missing the memo that your FAFSA was selected for verification isn't a valid excuse. "It will hold up your financial aid if they're still waiting for verification pieces," says Jodi Okun, who founded College Financial Aid Advisors, which helps families navigate the college financial aid process, and serves as a brand ambassador for Discover Student Loans.
An asterisk next to the expected family contribution amount on the Student Aid Report, or SAR, is an indication that the FAFSA was selected for verification.
Schools may reach out to students through their online student accounts, university email or personal email address to offer more information about the documents they require. Students should check those regularly after filing the FAFSA, say experts.
"It's incumbent on students to be grown up and check," says Coolidge. "If a student is traveling in Mongolia for the summer, they may want to designate someone to check it for them."
[Read about five myths about parent information on the FAFSA.]
3. Watch the clock: Doing financial aid paperwork is no one's idea of a good time, but students shouldn't drag their heels when it comes to submitting verification documents.
"There's a fair amount of urgency because campuses will award aid based on whoever's eligible," says Coolidge. "The amount of institutional aid may be awarded to someone else."
For students attending a college in the University of California system, "you need to get this verification info to us by mid-May," says Coolidge. Check with the university for any deadlines. You'll like need to get the FAFSA verification submitted before summer begins.
4. Look into the IRS Data Retrieval Tool: One way to minimize the chances of being selected for verification is to use the IRS Data Retrieval Tool, a federal tool that transfers information directly from tax returns to the FAFSA.
"For families who do take advantage of the IRS Data Retrieval Tool, and then don't change that information, that information is considered verified already," says O'Connell, of NASFAA.
One challenge with the tool is that it's common -- and even encouraged -- that families submit the FAFSA before filing their taxes.
The strategy in that case is to file the FAFSA soon after it becomes available on Jan. 1, using estimated information. After applicants file their taxes, they can use the IRS tool to update the FAFSA, assuming they submitted it electronically.
And, of course, all families, whether they use the tool or not, should strive to be accurate the first time.
"Filling out the FAFSA, to the best of your knowledge, to be the most accurate and true is your first step," says Okun.
Trying to fund your education? Get tips and more in the U.S. News Paying for College center.