(a) General requirements.

1. (1) Except as provided in paragraph (b) of this section, an institution must require an applicant whose FAFSA information is selected for verification by the Secretary, to verify the information specified by the Secretary pursuant to § 668.56.
2. (2) If an institution has reason to believe that an applicant's FAFSA information is inaccurate, it must verify the accuracy of that information.
3. (3) An institution may require an applicant to verify any FAFSA information that it specifies.
4. (4) If an applicant is selected to verify FAFSA information under paragraph (a)(1) of this section, the institution must require the applicant to verify the information as specified in § 668.56 if the applicant is selected for a subsequent verification of FAFSA information, except that the applicant is not required to provide documentation for the FAFSA information previously verified for the applicable award year to the extent that the FAFSA information previously verified remains unchanged.

(b) Exclusions from verification.

1. (1) An institution need not verify an applicant's FAFSA information if—

   1. (i) The applicant dies;
   2. (ii) The applicant does not receive assistance under the title IV, HEA programs for reasons other than failure to verify FAFSA information;
   3. (iii) The applicant is eligible to receive only unsubsidized student financial assistance; or

   4. (iv) The applicant who transfers to the institution, had previously completed verification at the institution from which he or she transferred, and applies for assistance based on the same FAFSA information used at the previous institution, if the current institution obtains a letter from the previous institution—

      1. (A) Stating that it has verified the applicant's information; and
      2. (B) Providing the transaction number of the applicable valid ISIR.

2. (2) Unless the institution has reason to believe that the information reported by a dependent student is incorrect, it need not verify the applicant's parents' FAFSA information if—

   1. (i) The parents are residing in a country other than the United States and cannot be contacted by normal means of communication;
   2. (ii) The parents cannot be located because their contact information is unknown and cannot be obtained by the applicant; or
   3. (iii) Both of the applicant's parents are mentally incapacitated.

3. (3) Unless the institution has reason to believe that the information reported by an independent student is incorrect, it need not verify the applicant's spouse's information if—

   1. (i) The spouse is deceased;
   2. (ii) The spouse is mentally incapacitated;
   3. (iii) The spouse is residing in a country other than the United States and cannot be contacted by normal means of communication; or

   4. (iv) The spouse cannot be located because his or her contact information is unknown and cannot be obtained by the applicant.

      Approved by the Office of Management and Budget under control number 1845-0041)

      (Authority: 20 U.S.C. 1091, 1094)