College Financial Aid Office Wants Parents' Tax Returns

**11shot** · 08-16-2007, 09:57 AM

I'm trying to find out the lawfullness of the actions of a college. My Daughter is attending a local university. She is recieving federal financial aid and the university has decided to verify the information on her request for financial aid. So they have requested my federal tax return with w-2's signed with my autograph. Now, I have nothing to hide, but I find the request irks me and I don't believe they should have any right to an autograghed copy of my tax return.
I have contacted the IRS and they stated that the college may request the information but that they NEVER have seen a request for a signed copy, just a transcript. FAFSA told me that the university may request the information but that I wasn't beholden to divulge the information. They also stated that the university could then deny financial aid to my child if I refused the information in the way the university requests it.
Furthermore, I read somewhere on the net (and I'm kicking myself for not bookmarking the site) that it is a felony for a college or university to deny financial aid when a person refuses to divulge information such as a SS#.
Is there anyone out there who is familiar with this situation? I find myself more and more concerned with intrusions into my constitutional rights, and I'm getting tired of the response "well, it's not exactly legal, so go sue us" Yes I have been told this. There seems to be an assumption that people will roll over to this type of bullying.

**jojo4** · 08-16-2007, 10:46 AM

I find it difficult to believe that the IRS would be telling you that they have never seen a request for a signed Fed. tax form, as it is clearly stated on the verification form that you will need to provide exactly that.
http://www.ifap.ed.gov/vgworksheets/...NAL1218906.pdf

Regulations require schools to collect and verify SS# of the student/grantee before awarding financial aid.
http://law.justia.com/us/cfr/title34/34-3.1.3.1.34.html

(See: 34 CFR § 668.36.)

I can understand why financial aid would be denied or delayed if you do not provide the information.

What am I missing?

**11shot** · 08-16-2007, 09:36 PM

Thanks for the reply jojo4, And no you are not missing much. To clarify what the IRS person told me was that they get 1000's and 1000's of requests for verification of income and send out in reply a transcript of the return but not the actual return. She also stated that she had never seen a request for a signed copy of a tax return. Of course this might not be unusual because universities are not likely to request a signed copy from the IRS.
I'm not sure what is current law in regards to this privacy issue. I have read that much has changed, and is continuing to change, under the homeland security acts. With the increase of identity theft, is a growing trend toward protection of people's privacy. For instance we have been required to black out any referances to employees SS#'s on all documents where I work. (I have a new emplyee identity number).
I have a very jaded view of most colleges and universities. Specifically, I have had too many 'issues' with the integrety of many who work at them. I guess maybe I'm wandering a little off course here........

**jojo4** · 08-17-2007, 06:57 AM

Many univiersities are no longer using the SS# as the student's ID#. However, for financial aid purposes, it is still required.

**navydoc3** · 08-19-2007, 06:20 AM

When your daughter first submitted her FAFSA[intial student aid application], did it indicate that she was a DEPENDENT or INDEPENDENT student?
It sounds very much like she was classified as a DEPENDENT student, by the financial aid office at her college.This means to assess what she is entitled to, with regards to aid, they require parents tax information, for the previous year.
My husband is a nursing student, and we know this process first hand!!

**navydoc3** · 08-19-2007, 06:29 AM

Also I meant to add, the verification process is pretty much standard, my husband does it every year, and provides the college with intialed COPIES of his W2,s, and tax return.
jojo4 is correct with the issue of SS#, they are used PURELY for aid assessment purposes, indeed my husband has now been given, a personalised student ID # for everything else.