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Student loans require verification process under new rules

Student loans require verification process under new rules

Moving away from the business of mortgages, let us look into another area where for 4506-T comes into play. It is the education sector, specifically colleges. The U.S. Department of education selects random students for verification and according to the latest revision; they do not accept copies of a student’s Federal Tax returns. They are particular that a student either corrects their data given in the FAFSA or applies to the IRS for a tax transcript.
Students have the option to use the IRS Data Retrieval Tool or fill out a 4506-T to get the required details. There are three ways in which they can get their transcripts from the IRS
• From www.irs.gov
• By calling 1-800-908-9946
• By using the Paper Request Form – IRS 4506T-EZ
Many universities like The University of Chicago, The Walden University, and The University of Georgia follow this new rule and have outlined the procedure clearly on their websites.

Another instance where the form 4506-T is used is when high school students apply for financial aid to study abroad. In such situations, the parents are asked to fill out the 4506-T and send the transcripts to School Year Abroad.

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