Financial Aid Policies
To receive certain types of aid, individuals must meet certain requirements. TLU has specific eligibility requirements regarding students' rights and responsibilities, enrollment status, satisfactory academic progress, appeals, maximum gift aid, consequences of withdrawing, refunds, penalties for drug convictions, study abroad, and summer. All of these areas can affect your eligibility for aid.
Federal Student Financial Aid Penalties for Drug Law Violations
A federal or state drug conviction* can disqualify students for FSA funds
Convictions only count if they were for an offense that occurred during a period of enrollment for which a student was receiving Title IV aid – they do not count if the offense was not during such period. Also, a conviction that was reversed, set aside, or removed from the student’s record does not count, nor does one received when the student was a juvenile unless the student was tried as an adult.
The chart below illustrates the period of ineligibility for FSA funds, depending on whether the conviction was for sale or possession and whether the student had previous offenses.
*(A conviction for sale of drugs includes convictions for conspiring to sell drugs)
Possession of illegal drugs Sale of illegal drugs 1st Offense 1 year from date of conviction 2 years from date of conviction 2nd Offense 2 years from date of conviction
3rd Offense Indefinite period
If the student was convicted of both possessing and selling illegal drugs, and the periods of ineligibility are different, the student will be ineligible for the longer period.
A student regains federal financial aid eligibility the day after the period of ineligibility ends or when the student successfully completes a qualified drug rehabilitation program or, effective beginning with the 2010-2011 award years, passes two unannounced drug tests given by such a program. Further drug convictions will make the student ineligible again.
Students denied eligibility for an indefinite period can regain eligibility after successfully completing a rehabilitation program (as described below), passing two unannounced drug tests from such a program, or if a conviction is reversed, set aside, or removed from the student’s record so that fewer than two convictions for sale or three convictions for possession remain on the record. In such cases, the nature and dates of the remaining convictions will determine when the student regains eligibility. It is the student’s responsibility to certify to the school that the rehabilitation program was successfully completed.
Standards for a qualified drug rehabilitation program must include at least two unannounced drug tests and must satisfy the following requirements:
- Be qualified to receive funds directly or indirectly form a federal, state, or local government program.
- Be qualified to receive payment directly or indirectly from a federally or state-licensed insurance company.
- Be administered or recognized by a federal, state, or local government agency or court.
- Be administered or recognized by a federally or state-licensed hospital, health clinic, or medical doctor.
Financial Aid Refund Policies
Find out how failing or withdrawing from classes can affect your financial aid.
Students are encouraged to meet with the Office of Student Financial Services before changing enrollment by dropping a class or starting the withdrawal process so that they can be informed of the financial impact of withdrawing from college. Students who wish to drop a class or begin the official withdrawal process during the first week of class may do so on MyTLU.
After the first week of class, students must contact the Office of Registration and Records to obtain either a drop/add slip or a withdrawal form. A student is considered to have officially dropped a class or withdrawn from TLU once the student has obtained all the required signatures and has returned the completed form to the Office of Registration and Records.
Note: The withdrawal date is determined by the date the student signs the withdrawal form, indicating his or her intent to withdraw from TLU. Should the student decide not to withdraw at that point in the semester but later withdraws or fails all of his or her classes, the official withdrawal date reverts back to the date on the first form that was completed.
A student’s enrollment status will be determined based on enrollment on the census date each term. Once enrollment status has been determined, financial aid will be reviewed. If a student’s enrollment status is different than that at which he or she was awarded, his/her financial aid will be adjusted accordingly. For example: Institutional aid and state grants requiring full-time enrollment will be cancelled and Federal Pell Grants will be adjusted for the new enrollment status. Loans will be cancelled if the student is enrolled less than half-time (6 credit hours).
Note: A student awarded a Federal Pell Grant MUST begin attendance in all classes to be eligible for disbursement of the Pell Grant award.
If a student drops a class after the census date, institutional aid may be reduced – see Institutional Aid Policy – but federal and state grants will not be adjusted. However, Federal Stafford loans require enrollment to be re-certified at the time of disbursement. As a result, students who drop below 6 credit hours (half-time) before the loan is disbursed will not be eligible for the loan disbursement.
Below are definitions that will help you understand the financial aid refund policy:
- Census Date: The 12th class day of a fall or spring term and the third day of the term for May and summer sessions.
- Drop: Student completes official paperwork to cancel enrollment in a class.
- Drop Fail: Professor completes paperwork to cancel enrollment in a class for a student due to the student no longer attending the class.
- EFC: Expected Family Contribution
- Official Withdrawal: The student officially notifies the Office of Registration and Records that s/he is cancelling enrollment in all of the classes for which s/he has registered for in a given semester.
- Unofficial Withdrawal: The student stops attending classes, receives all F’s in his/her courses, is Drop Failed from all of his/her classes or a combination of the above.
- Withdrawal Date: The date the student officially began the withdrawal process in the Office of Registration and Records OR in the case of an unofficial withdrawal, the last date of attendance or the 50% point of the semester, whichever is later.
Institutional Aid Policy
When a student withdraws from the university or drops a class before the end of the institutional refund period, adjustments are made to the financial aid that was awarded to the student. Adjustments in financial aid are done in coordination with the university’s institutional charges refund policy. Scholarships and other institutional aid may be rescinded.
Institutional aid granted by TLU is adjusted by the Office of Student Financial Services according to the percentage refund schedule set by the Office of Registration and Records for adjusting institutional charges. In no case will a student receive institutional funds in cash.
For example, a student that has $8,000 in institutional financial aid who withdraws during the 25 percent institutional refund period, will have their tuition reduced by 25 percent AND their institutional aid reduced by 25 percent.
Federal Aid Policy
Federal financial aid is reviewed two times a semester – once at census date and once grades are posted at the end of the term or when the student officially withdraws.
Review at Census Date: A student’s enrollment status will be determined based on the student’s enrollment on the census date each term. Once the student’s enrollment status has been determined, his/her financial aid will be reviewed. Aid will be revised if the enrollment status that the aid was awarded based upon is different than the enrollment status at census date.
For example, a student who was awarded Pell Grant based on full-time enrollment status (12 hours or more) and who is enrolled for three-quarter time (9-11 hours) at census will be eligible for 75 percent of the Pell Grant awarded.
The Office of Student Financial Services attempts to contact all enrolled students before the census date when the aid awarded is based on a higher enrollment status than the student is enrolled for to determine the student’s intentions and let the student know how the aid is affected.
Review at End of Term: Student grades are reviewed at the end of each term. Students who fail to successfully complete at least one class (completed with a grade of D or higher) will have a Federal Return of Title IV Funds calculation completed and may be required to repay some or all of their financial aid.
The Office of Student Financial Services is required to complete this calculation within 30 days of the date grades are made official and is required to return funds (if needed) within 45 days.
Also, a student who fails all of his/her classes because s/he stopped attending classes will be considered to have only attended class until the mid-point of the term unless proof of class attendance beyond the 50 percent point is provided by either the professor or the student. The burden of proof rests with the student.
Official Withdrawal: The Office of Student Financial Services is required to complete a Return of Title IV Funds calculation on all students who officially withdraw within 30 days of being notified of the student’s intent to withdraw.
A student who withdraws from all classes prior to the 60 percent point of the term and who receives Title IV federal financial aid may owe a refund of some or all of the federal aid received.
Federal financial aid is “earned” on a proportional basis for each day of the term that the student has completed. If a student completes 30 percent of the term, then he/she has earned 30 percent of the federal financial aid. If the financial aid has been credited to the student’s account and has paid institutional charges only, 70 percent of the aid must be returned to the federal financial aid programs.
Federal funds are returned to the programs in the following order:
- Unsubsidized Federal Stafford Loan
- Subsidized Federal Stafford Loan
- Federal PLUS Loan
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Federal TEACH Grant
If a credit on the student’s account was created by a federal grant that was paid to the student, the student will be required to repay 50 percent of any unearned grant amount. If the credit balance was created by a loan disbursement, the student will be required to repay the lender the amount of the loan as per the terms of the signed promissory note.
Example 1: Joe was awarded federal grants totaling $3,000 and received Federal Stafford funds of $2,500. Joe was registered full time, lived in Seguin Hall and had 15 meal/week meal plan. His total institutional charges are $15,215.
If Joe withdraws at the 30% point in the term, he will have earned $1,650 of the $5,500 awarded. 70% of the $5,500 or $3,850 must be returned to the federal programs. TLU will return the $2,500 Federal Stafford Loan to the lender and $1,350 of the federal grants. Because Joe withdrew during week 5 of the term, he does not get a refund of tuition, room or board.
Assuming Joe had a zero balance on his student account at the time of withdrawal, he will be required to pay TLU $3,850.
Example 2: Joe was awarded federal grants totaling $3,000 and received Federal Stafford funds of $2,500. Joe was registered full time, lived in Seguin Hall and had 15 meal/week meal plan. His total institutional charges are $15,215.
Joe withdrew at the 50% point of the term. Only 50% of the $5,500 or $2,750 is considered earned. TLU would return the $2,500 Federal Stafford loan to the lender and $250 of the federal grants. Assuming Joe had a zero balance on his student account at the time of withdrawal, he will be required to repay to TLU $2,750.
Although financial aid must be returned to the federal programs as prescribed by federal regulations, the TLU Institutional Charges Refund Policy does not refund institutional charges at the same percentages. Students will be required to pay TLU for any balances owing after the institutional charges refunds and financial aid refunds have been calculated.
If part of the balance owed to TLU is the repayment of a federal grant, TLU has 30 days to notify the student of the balance owed. The student has 45 days to either repay the funds or make satisfactory payment arrangements with the Business Office. Students who fail to repay the funds within 45 days may be reported to the credit bureau.
Late disbursements/Post-withdrawal Disbursements: If all aid for the term has not disbursed at the time the student withdraws, the Return of Title IV Funds calculation will determine if a student is eligible for a post-withdrawal disbursement of the aid. Post-withdrawal disbursements of grant funds will be made automatically to the students account as long as all required documentation has been submitted to the Office of Student Financial Services. A student who needs to complete the verification process has 120 days after the last day of enrollment (or mid-September for those enrolled in summer school) to complete verification to receive federal aid.
Generally a student ceases to be eligible for aid once he has finished the term and is no longer enrolled. However, he may submit verification documentation and receive a late disbursement after that time if the U.S. Department of Education processed a SAR or ISIR with an official EFC while he was still enrolled. Per federal regulations, if there was a change in the EFC due to verification completed after enrollment has ceased, any Pell grant awarded would be the higher of the EFC at the end of the term or the EFC after verification. i.e. The Pell Grant awarded would be the lesser of the two awards.
State Grant Aid Policy
When a student withdraws from all classes or drops a class, tuition will be refunded according to the university’s institutional charges refund policy. The Tuition Equalization Grant (TEG) is tuition restricted. If a student withdraws or drops a class after census date, TEG will only be adjusted if TEG plus institutional grants and scholarships are greater than tuition.
Employee Tuition Exchange Policy
TLU participates in both the Tuition Exchange, Inc. and the Evangelical Lutheran Church in America (ELCA) tuition exchange programs.
Dependent children of full-time employees at participating institutions may qualify for either of these programs.
To be eligible for either of these exchange programs, the student must be admitted as a full-time, degree seeking student at TLU.
Visit the Office of Student Financial Services to review a list of participating ELCA schools.
Tuition Exchange, Inc.
Employees at participating institutions must complete a Tuition Exchange application each academic year at the institution at which they are employed. Since all applications should be processed through both TLU and the employing institution and submitted to Tuition Exchange, Inc by April 1st each year for the next award year, it is recommended that the application be completed and submitted to the Office of Student Financial Services by March 1. Applications received on or after April 1st will not be processed.
Tuition Exchange is highly competitive and space is limited. We recommend that the student applies for both admission and tuition exchange as early as possible.
TLU must keep a balance between those students imported to TLU and those exported to other institutions each year through this program. As a result of this requirement, the number of students accepted into this program each academic year may change. Priority will be given first to continuing students previously accepted into this program with new applications being processed on a first-come, first-served basis. TLU reserves the right to go to an application further down on the priority list should the student not be accepted to TLU by March 15.
Eligibility: Students are required to complete a Free Application for Federal Student Aid (FAFSA) each academic year for which they wish to participate in this program. Students are also encouraged to apply for other non-institutional grants and scholarships. Support from these sources may be added to the tuition benefit according to institutional policy at the institution the student will attend.
Dependent children of faculty and staff are eligible, subject to the following qualifications:
- Participants must meet the definitions of dependency at both the parent’s employing institution and TLU.
- TLU is not obligated to provide tuition for more than the actual amount of tuition. TLU does not award tuition exchange scholarship for room and board.
Limits: Participants may utilize the program for tuition only for a maximum of eight full-time semesters at the undergraduate level. Summer school may be included in the program but will be counted as one full-time semester regardless of whether the student attends summer session full-time. The student is responsible for all fees, books, room, board and any other expenses required to attend college.
TLU reserves the right to make admissions decisions in accordance with regular policies. Continuing enrollment is also subject to TLU policies for good conduct and academic standing.
Renewal: Renewal of this award is contingent upon the student maintaining Satisfactory Academic Progress at TLU and the student’s remaining eligibility in the program. Students should meet all application deadlines set by TLU.
Eligible employees must maintain full-time employment at the employing institution for the student to continue receiving this benefit at TLU.
Employees at participating institutions must complete an ELCA Tuition Exchange application each academic year their dependent children participate in this program. These applications must be completed and sent to the parents’ institution’s financial aid office no later than April 15th and their financial aid office must submit the application to the Office of Student Financial Services no later than May 1st. Applications received after May 1st will not be processed.
TLU is limited to four students per year through this program. Priority will be given first to continuing students previously accepted into this program with new applications being processed on a first-come, first-served basis. TLU reserves the right to go to an application further down on the priority list should the student not be accepted to TLU by May 1st.
Eligibility: Students are required to complete a Free Application for Federal Student Aid (FAFSA) each academic year for which they wish to participate in this program. Students are also encouraged to apply for other non-institutional grants and scholarships. Support from these sources will be added to the tuition benefit according to institutional policy at the institution the student will attend.
Dependent children of faculty and staff from participating institutions are eligible, subject to the following qualifications:
- Participants must meet the definitions of dependency at both the parents’ employee institution and TLU.
- Participants are not entitled to receive any benefits from TLU which they would not be entitled to receive from their parents’ employing institutions. For example, if the student is eligible for 75% tuition remission at the parent’s employing institution; he/she is only eligible for 75% of tuition at TLU.
- TLU is not obligated to provide any benefit under this program which it does not provide to its own employees in a comparable classification.
- Dependent children of retired employees are eligible according to the limits of #2 and #3 above.
Eligible employees wanting their dependent children to participate in this program must contact the ELCA tuition exchange liaison at their employing institution to complete an ELCA Tuition Exchange application.
Limits: Participants may utilize the program for tuition only for a maximum of four full-time academic years at the undergraduate level. Summer school may be included in the program. The student is responsible for all fees, books, room, board and any other expenses required to attend TLU.
TLU reserves the right to make admissions decisions in accordance with regular policies. Continuing enrollment is also subject to TLU policies regarding good conduct and academic standing. Should employment cease, TLU reserves the right to recalculate the financial aid package and/or discontinue the benefit.
Renewal: Renewal of this award is contingent upon the student maintaining Satisfactory Academic Progress at TLU. Students should meet all application deadlines set by the importing institution.
Eligible employees must maintain full-time employment at their employing institution for the student to continue receiving this benefit.
Satisfactory Academic Progress Policy
Effective Fall 2019
The United States Department of Education (Higher Education Act of 1965, as amended) requires that students maintain satisfactory progress toward completing their degree in order to receive financial aid. Student Financial Services is required to check three standards: quantitative (pace of progression), qualitative (GPA), and maximum time frame for receiving aid.
These standards, known as Satisfactory Academic Progress (SAP), apply to a student’s entire degree program, including semesters (fall, spring, and summer) in which financial aid was not applied for or disbursed. SAP governs eligibility for students to establish or maintain aid eligibility for all federal, state and institutional financial aid programs including grants, scholarships, student and parent loans, and work-study. Many private loans also require the student to be meeting SAP.
TLU Student Financial Services reviews all three standards of Satisfactory Academic Progress at the end of each semester (fall, spring, and summer) for all students using financial aid. All summer terms combine to create one summer semester for financial aid purposes.
QUANTITATIVE STANDARDS (PACE OF PROGRESSION)
Students must successfully complete a minimum of 75% of all credit hours attempted. After grades are posted each semester, a student’s cumulative credit hours successfully completed (earned) will be divided by the cumulative credit hours attempted to determine the completion rate.
Completed (earned) Credits: Successfully completed credits include grades of A, B, C or D (including plus or minus) and credits taken pass/fail, in which a P was earned. Unsuccessful grades consist of F, W, I, classes taken for audit, or any other grade that does not result in completed credits. Credits earned by examination will be considered completed credits. Note: A grade of D is not considered a passing grade for graduate programs and is not counted as completed credit.
Attempted Credits: All credit hours for which a student registers at TLU, those transfer credits that count toward the TLU degree, and credit hours earned by examination are included in attempted credits. Grades of I or W will count as hours attempted, but not completed. If incompletes are later completed, they will be reflected when progress is checked, or sooner, at the student’s request.
Transfer Credits: Transfer credits that apply to a student’s TLU degree are included in both the credits attempted and the credits earned when calculating the completion percentage. Credits received for remedial courses or for courses that are not applicable to the student’s TLU degree are not included in either credits attempted or earned.
Repeated Courses: Courses that are retaken to improve a grade are counted in attempted hours each time the course is taken but only once toward the credit hours earned in the completion rate. Students may retake a class for which they have previously received a grade of “F” as many times as it takes to successfully complete the class. However, students may only repeat a class one time in which they have received a passing grade. After one allowable time, the student cannot use federal assistance for future repeats.
Part-time Students: Cumulative GPA requirements are the same as for full-time students. The number of semesters required to complete the program will depend on the hours registered. Students must successfully complete the majority of the credit hours attempted each semester and maintain a 75% cumulative completion rate.
Second Degree Students: Officially accepted credits that apply to the degree program will count toward both credit hours attempted and credit hours earned.
QUALITATIVE STANDARDS (GPA)
Undergraduate students admitted to TLU must maintain a minimum cumulative GPA as follows:
Credit Hours Earned GPA
Fewer than 27 1.8
27 + or after the 4th regular semester 2.0
Second Degree, Teacher Certification, and Graduate students must maintain a cumulative 2.0 GPA.
NOTE: Students receiving a Tuition Equalization Grant (TEG) must maintain a cumulative GPA of 2.5, earn a minimum of 24 credit hours per academic year, and successfully complete 75% of the credit hours for which they enroll each academic year to be eligible for renewal.
MAXIMUM TIME FRAME FOR ELIGIBILITY
Federal Aid Standards: Federal regulations govern the maximum length of time a student may receive federal aid. This timeframe is defined as 150% of the scheduled length of the program. For example, students pursuing a bachelor’s degree., in an academic program requiring 124 credit hours may attempt up to 186 credit hours (150% of 124 is 186 hours). For transfer students, the number of transfer credit hours accepted at the point of admission to TLU will be used to calculate the student’s remaining eligibility for the 150% maximum timeframe calculation. Second undergraduate degree students will have the previous degree’s accepted credit hours applied toward the student’s current degree and used in the 150% maximum time frame calculation.
FINANCIAL AID ACADEMIC PROGRESS STATUS
Financial Aid Warning
Students will be sent a warning if they fail to meet either the completion rate, minimum cumulative GPA standard as outlined, or are approaching their program’s maximum timeframe. Students will be placed on warning for one semester during which they must come into compliance with the standard. Students not meeting SAP at the end of the warning semester will be placed on Financial Aid Suspension.
Financial Aid Suspension
Students who fail to meet the standards at the end of their warning semester will be ineligible for financial aid beginning with the next semester of attendance. (See Appeals to Regain Eligibility.)
Students receiving grades of “F” or “D” (graduate programs only) in all courses attempted in any semester will be automatically ineligible for financial aid regardless of whether the student had received a financial aid warning.
Students who pre-register for a subsequent semester before grades are evaluated and who use a financial aid estimate to defer tuition and fees are responsible for the semester’s balance if they do not maintain satisfactory academic progress and have been disqualified from financial aid once grades are posted and reviewed.
A student who is disqualified from financial aid more than one time for failure to meet these standards must meet with a financial aid counselor to discuss plans for re-establishing financial aid eligibility. Unless there are extenuating circumstances, a student in this category should expect to enroll for at least 12 credit hours without financial aid at TLU and successfully pass all courses with a minimum of a 2.0 GPA to be reconsidered for financial aid.
Students are responsible for maintaining awareness of their SAP status for aid renewal whether or not they receive the official notifications. Student Financial Services is not responsible for address changes that are not reported or for problems with postal mail or email delivery.
Correcting Academic Deficiencies
It is important to remember that grade deficiencies can only be corrected at TLU, but credits to correct a deficiency in credit hours earned can be taken elsewhere and transferred to TLU through arrangement with the Registrar’s Office. Students may request a review of their progress when a grade is changed, regardless of when that change occurs.
Appeals to Regain Eligibility
A student who fails to meet these standards and loses eligibility for financial aid may appeal this decision. Appeals must be in writing and must be accompanied by appropriate supporting documentation. In the appeal, the student must explain why s/he was not making progress and what has changed so that s/he will begin making progress. Appeals should be submitted to Student Financial Services at least three (3) weeks before the beginning of the student’s next semester of attendance to allow time for processing. Appeals will be approved or denied in writing via email. The student is limited to two appeals.
Reasons that may be acceptable for appeal are: 1) serious illness or accident affecting the student; 2) death, accident or serious illness in the student’s immediate family; 3) change in academic program; 4) or other serious extenuating circumstances.
If approved, the student will be placed on Financial Aid Probation for one semester and aid will be granted. If the student cannot meet SAP by the end of the probationary semester, the student must complete and submit to Student Financial Services a SAP Academic Plan that shows how and when the student will be meeting SAP.
If denied, the student may choose to enroll without using financial aid in an effort to repair the SAP deficiencies. Students may request a review of their record following any semester. If the SAP standards are met at the time of review, financial aid eligibility may be regained for subsequent semesters of enrollment that year.
TEG Hardship Policy
State regulations require the student to meet certain conditions for the renewal of his/her Tuition Equalization Grants (TEG). These conditions are as follows:
- The student must earn a minimum of 24 credit hours during the academic year.
- The student must maintain a minimum cumulative GPA of 2.5 and minimum 75 percent completion rate.
- The student must continue to meet Satisfactory Academic Progress standards.
The Texas Higher Education Coordinating Board (THECB) requires colleges to have a hardship policy in place for the TEG program. When a student does not meet the above conditions due to unusual circumstances or a situation exists which creates a hardship for the student, the student may appeal for continuation of their TEG award.
TLU has determined the following hardships that may prevent a student from meeting either the cumulative GPA or cumulative hours earned renewal requirements.
The hardships listed below will require the student to submit an appeal explaining their situation and providing documentation when appropriate.
A student who experiences a serious accident, illness or medical condition that prevents the student from attending class and/or completing a semester which results in the student not being able to meet renewal requirements.
A student who experiences a serious accident, illness or death in the immediate family that prevents the student from attending class and/or completing a semester which results in the student no being able to meet renewal requirements.
Other situations determined by the financial aid office as documented by the student. Examples may include military deferments and other situations unforeseen at this time.
The following hardships are automatic and do not require an appeal.
- December graduate from high school who immediately enrolls in college. TLU has determined it is a hardship for a student who graduates from high school in December immediately preceding spring enrollment at TLU to earn a minimum of 24 credit hours by the end of the academic year. For example, a student graduates from high school in December 2017 and begins enrollment at TLU in January 2018 (Spring 2018). Students who graduate in December but postpone college until another academic year are not included as part of this hardship based on state policy.
- A graduating senior enrolled less than full-time during their final regular semester. This pertains to a student in their graduating semester that enrolls at least half-time but is not required to enroll full-time to graduate. This student would be eligible to receive a prorated award.
- Academic Year: Includes Fall, Spring and Summer. At TLU, the academic year for financial aid runs from August to July.
- First-time freshman: A student who has not attended college after graduating high school before attending TLU.
- Regular semester: A regular semester includes a Fall or Spring semester.
- Immediate family: include biological or stepparent, grandparent and siblings.
- Immediate family: may include another person not previously mentioned, such as a legal guardian, if the student lives with this person.
2019-2020 Verification Policy
FSA Verification Guide will be used for all verification purposes.
Who will be selected for verification?
All students who are currently enrolled or admitted for enrollment for the 2019-2020 academic year who:
- Are federally selected for verification
- Any students whose information does not appear to be reported correctly
These include but are not limited to:
- Tax paid is equal to adjusted gross income for either parent or student
- Student income equals parent income
- Income report appears to low to support the family size reported
TLU will not verify FAFSA data for student who(se):
- EFC greater than the cost of attendance
- Are not eligible for and do not receive federal or state need-based financial aid
- The student dies before verification is completed
- The student is selected for verification after ceasing enrollment at TLU
Federally Selected Verification
Beginning with the 2017-2018 academic year, the U.S. Department of Education has instituted verification groups V1, V4 and V5 that individualize the way FAO verifies students.Each group has a unique set of information/documents they must provide to the school to complete verification.
V1 – Standard Verification
All students marked as verification group V1 must verify the following data:
- Adjusted Gross Income
- U.S. Income Tax Paid
- Untaxed portions of IRA distributions
- Untaxed portions of pensions
- IRA deductions ad payments
- Tax-exempt interest income
- Education credits
- Household size
- Number in college
- Non Tax Filers:
- Income earned from work
- Household size
- Number in college
V4 – Custom Verification
All students marked as verification group V4 must verify high school completion status, identity and complete a statement of educational purpose.
V5 – Aggregate Verification
All students marked a verification group V5 must complete all verification items as shown in V1 and V4.
AGI, taxes paid, and other tax data:
Students and their parents are encouraged to use the IRS Data Retrieval Tool (DRT) available in the FAFSA on the Web application at www.fafsa.gov.The use of DRT significantly reduces the length of time to verify as well as the documents that must be submitted.Copies of the IRS Tax Transcript do not need to be signed by the tax filer.
Some tax filers are not eligible to use the DRT process. These filers must then provide a copy of the IRS Tax Transcript which can be requested online at www.irs.gov, by calling 800-908-9946 or by mailing or faxing the paper Form 4506-T, which can be printed from the IRS web site. Those not eligible to use DRT are:
- A person that did not indicate on the FAFSA that the tax return has been completed (i.e. marked “will file”).
- The marriage date is January 2018 or later.
- The first three digits of the SSN are 666.
- The tax return was amended.
- The person filed a Puerto Rico or foreign tax return.
- The person is married and filed the tax return as either head of household or married but filing separate return.
- Neither married parent has a valid SSN.
- A non-married parent or both married parents entered all zeros for the SSN.
- Non-tax filers must submit copies of their W-2s for each source of employment income.The non-tax filer must also submit a signed statement of all sources and amounts of income not on a W-2 and certify that he/she has not and is not required to file.
When a tax return transcript is unavailable:
*Effective January 9, 2019 per Office of Postsecondary Education Electronic Announcement:
Income Tax Return – Institutions may accept as acceptable documentation a signed copy of the 2016 or 2017 income tax return, as applicable, that the tax filer submitted to the IRS or other tax authorities to verify FAFSA/ISIR income and tax return information. Institutions are reminded that tax account information obtained from the IRS through the Internal Revenue Service Data Retrieval Tool (IRS DRT) that has not been changed and a transcript from the IRS or other tax authorities continues to be acceptable documentation.
When a tax extension request has been granted:
Students and parents who have been granted a tax filing extension must submit:
- A copy of IRS Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
- A copy of all W-2 forms.
- If self-employed, a signed statement with the amount of their AGI and their U.S. income taxes paid.
Once the tax return has been filed, the student or parent must then use the IRS Data Retrieval Tool to update the income data reported on the FAFSA.
When an amended return is filed:
- Students or parents who file an amended return cannot use the IRS Data Retrieval Tool.If they filed an amended return after using the DRT to fill out the FAFAS, they must submit:
- A signed copy of the IRS Form 1040X that was filed.
- A signed copy of the original tax return transcript or any other IRS transcript (RTFTP) that includes all the income and tax information required to be verified:AGI, income tax paid, education credits, etc.
Victims of IRS Identity Theft
A victim of IRS identity theft who has been unable to obtain a 2017 IRS Tax Return Transcript or use the IRS DRT must provide a signed copy of the 2017 paper IRS income tax return that was filed with the IRS and a signed copy of IRS Form 14039 “Identity Theft Affidavit” if one was submitted to the IRS. If the individual did not keep a copy of Form 14039 or the IRS did not require him or her to submit one, he or she may provide one of the following:
- A statement signed and dated by the individual indicating that he or she was a victim of IRS identity theft and that the IRS is investigating the matter. The statement must also indicate that the individual submitted a Form 14039 to the IRS, but did not keep a copy of it or that he or she was not required to file the form; or
- A copy of a police report if it was filed related to the IRS identify theft.
Individuals Who Filed Non-IRS Income Tax Returns
If an individual filed or will file a 2017 income tax return with Puerto Rico, another U.S. territory (e.g., Guam, American Samoa, the U.S. Virgin Islands, the Northern Marianas Islands), or with a foreign country, provide a signed copy of that 2017 income tax return(s).
SNAP Benefits: No longer required for verification purposes.However, TLU may request proof if student is claiming independent due to supporting dependents and not income from work is reported.Recipient must submit a statement from the agency issuing the SNAP benefits.
Child Support Paid: No longer required for verification purposes.However, TLU may request student to submit proof of child support paid if student is claiming independency due to supporting dependents.
Student must provide a signed statement giving the annual amount of the support, the names or those who paid it and whom it was paid to, and the name(s) of the child(ren) for whom it was paid.
High School Completion:
Students must provide one of the following documents that indicate their high school completion status at the beginning of the 2019-2020 year:
- A copy of a high school diploma.
- A copy of a final, official high school transcript that shows the date when the diploma was awarded.
- A copy of a General Educational Development (GED) certificate or GED transcript.
- An academic transcript that indicates the student successfully completes at least a two-year program that is acceptable for full credit toward a bachelor’s degree.
- A copy of a secondary school completion credential for homeschool (other than a high school diploma or its recognized equivalent) if state law requires homeschooled students to obtain that credential.
- A transcript or the equivalent, signed by the parent or guardian of a homeschooled student, which lists the secondary school courses the student completed and documents the successful completion of a secondary school education in a homeschool setting.
Identity and Statement of Educational Purpose:
Students should appear in person at the TLU Office of Financial Aid and present a valid, government-issued photo ID such as a passport or a driver’s license or other state-issued ID.Students must also sign a statement of educational purpose that certifies who they are and that the federal student aid they may receive will only be used for educational purposes and for the cost of attending TLU for the 2019-2020 academic year.
Verification Procedures Continued
1. To obtain IRS tax documentation:
(a) Form 4506-T – to request:
i. Tax Return Transcript
ii. Wage & Income Transcript
iii. Non-Filing Letter
(b) If Form 4506-T was incomplete or inaccurate, IRS will mail to the individual IRS Form 13873-V RAIVS
i. Can be used as confirmation of Non-Filing Letter; must clearly state:
1. Form is provided as verification of non-filing
2. IRS has no record of a tax return
ii. Cannot be used if:
1. Nonspecific to request for verification of non-filing
States document request could not be processed or could not be honored.