[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR668.56]

[Page 479-480]
 
                           TITLE 34--EDUCATION
 
                         DEPARTMENT OF EDUCATION
 
PART 668--STUDENT ASSISTANCE GENERAL PROVISIONS--Table of Contents
 
     Subpart E--Verification of Student Aid Application Information
 
Sec. 668.56  Items to be verified.

    (a) Except as provided in paragraphs (b), (c), (d), and (e) of this 
section, an institution shall require an applicant selected for 
verification under Sec. 668.54(a)(2) or (3) to submit acceptable 
documentation described in Sec. 668.57 that will verify or update the 
following information used to determine the applicant's EFC:
    (1) Adjusted gross income (AGI) for the base year if base year data 
was used in determining eligibility, or income earned from work, for a 
non-tax filer.
    (2) U.S. income tax paid for the base year if base year data was 
used in determining eligibility.
    (3)(i) For an applicant who is a dependent student, the aggregate 
number of family members in the household or households of the 
applicant's parents if--
    (A) The applicant's parent is single, divorced, separated or widowed 
and the aggregate number of family members is greater than two; or
    (B) The applicant's parents are married to each other and not 
separated and the aggregate number of family members is greater than 
three.
    (ii) For an applicant who is an independent student, the number of 
family members in the household of the applicant if--
    (A) The applicant is single, divorced, separated, or widowed and the 
number of family members is greater than one; or
    (B) The applicant is married and not separated and the number of 
family members is greater than two.
    (4) The number of family members in the household who are enrolled 
as at least half-time students in postsecondary educational institutions 
if that number is greater than one.
    (5) The following untaxed income and benefits for the base year if 
base year data was used in determining eligibility--
    (i) Social Security benefits if the institution has reason to 
believe that those benefits were received and were not reported or were 
incorrectly reported;
    (ii) Child support if the institution has reason to believe that 
child support was received;
    (iii) U.S. income tax deduction for a payment made to an individual 
retirement account (IRA) or Keogh account;
    (iv) Interest on tax-free bond;
    (v) Foreign income excluded from U.S. income taxation if the 
institution has reason to believe that foreign income was received;
    (vi) The earned income credit taken on the applicant's tax return; 
and
    (vii) All other untaxed income subject to U.S. income tax reporting 
requirements in the base year which is included on the tax return form, 
excluding information contained on schedules appended to such forms.
    (b) If an applicant selected for verification submits an SAR or 
output document to the institution or the institution receives the 
applicant's ISIR, within 90 days of the date the applicant signed his or 
her application, or if an applicant is selected for verification under 
Sec. 668.54(a)(2), the institution need not require the applicant to 
verify--
    (1) The number of family members in the household; or
    (2) The number of family members in the household, who are enrolled 
as at least half-time students in postsecondary educational 
institutions.

[[Page 480]]

    (c) If the number of family members in the household or the amount 
of child support reported by an applicant selected for verification is 
the same as that verified by the institution in the previous award year, 
the institution need not require the applicant to verify that 
information.
    (d) If the family members who are enrolled as at least half-time 
students in postsecondary educational institutions are enrolled at the 
same institution as the applicant, and the institution verifies their 
enrollment status from its own records, the institution need not require 
the applicant to verify that information.
    (e) If the applicant or the applicant's spouse or, in the case of a 
dependent student, the applicant's parents receive untaxed income or 
benefits from a Federal, State, or local government agency determining 
their eligibility for that income or those benefits by means of a 
financial needs test, the institution need not require the untaxed 
income and benefits to be verified.

(Approved by the Office of Management and Budget under Control Number 
1840-0570)

(Authority: 20 U.S.C. 1094, 1095)

[56 FR 61337, Dec. 2, 1991, as amended at 57 FR 39089, Aug. 27, 1992; 59 
FR 22067, Apr. 28, 1994; 59 FR 61206, Nov. 29, 1994]