Among the many new job responsibilities this year, financial aid professionals must now follow new procedures in managing student FAFSA records that could be fraudulent.
To assist schools in managing FAFSA information flagged as potentially fraudulent, the Department of Education (the Department) has issued a Frequently Asked Questions document.
In a July 17 Electronic Announcement (EA), the Department said it “appreciates the support from institutions” in protecting the integrity of federal financial aid funds.
“The Department is committed to being a good partner to schools and to minimizing administrative burden while protecting taxpayers, states, and institutions from bad actors seeking to misuse federal funds,” the Department said in the announcement.
The FAQ document, which is included in the EA, covers:
- Identity Confirmation Methods and Standards
- Fraud Comment Codes, Rejects, and V4/V5
- FAA Fraud Override and Inter‑School Coordination
- Special Populations and Scenarios
- Compliance, OIG Reporting, and Prior‑Year Aid
In the announcement, the Department reminds schools that “as part of their fiduciary responsibility, schools must maintain effective internal controls and monitoring procedures to detect and prevent fraud and other improper payments to ensure that Title IV funds are used only for their intended purposes.”
