On April 24, 2025, FSA released an important update regarding 2024–25 Verification Reporting and the handling of Verification Status Code “W” (GRANTS-25-02). This update is crucial for schools administering Federal Pell Grants to ensure compliance with Title IV regulations.
Key Points on Verification Reporting
Schools are required to verify information submitted on the FAFSA® for students selected for verification by the FAFSA Processing System (FPS). For each 2024–25 Federal Pell Grant (Pell Grant) award disbursed, a verification status code must be reported through the COD System. Acceptable codes include:
- V: Verified
- S: Student Exempt
- W: Selected for Verification but Verification not yet completed (temporary)
Importantly:
- If a student is selected for verification but is exempt under regulations (34 CFR 668.54(b)), the school should report “S”.
- If verification is not completed and no exemption applies, the Pell Grant must be adjusted to $0.
Warning Message on Code “W”
Starting April 23, 2025, FSA will begin sending warning messages to schools that still have 2024–25 records reported with a status code “W”. These warnings alert that:
- Any student record still showing “W” by May 7, 2025, will be treated as an overaward.
- Pell Grant disbursements will be reduced to $0, even if previously accepted.
Schools will receive:
- Warning messages in PGTX25OP message class.
- Reconciliation Reports listing affected students in PGRC25OP class.
It’s critical for institutions to review their reports and update verification status codes promptly.
Final Deadlines
Although May 7, 2025, marks the initial reduction, schools can:
- Continue submitting corrections for individual students within the federal verification timeframe.
- Resubmit disbursement records greater than $0 until September 27, 2025.
- After that date, status code “W” will no longer be accepted for 2024–25 awards.
Need Help?
- For questions, institutions can reach out to the FSA Partner and School Relations Center at 1-800-848-0978 or email CODSupport@ed.gov.
Need Interim Support?
- College Aid Services can provide interim staffing to assist your office fill gaps or extra hands during peak processing times. Contact our Client Engagement Team here.