Many people want to lie on their financial aid application for college. Many parents and students think that no one will find out if they do so. This is about as far from the truth as you could possibly get. Yes, some people can get away with chewing and cheating. There is a chance however, a very good chance, that you will get caught.
Colleges have the right to audit you and your family whenever they feel the need to do so. Just like the IRS can offer you because they think you are not paying enough money in taxes, the college can audit you as well. They all to you for the opposite reason though, which is to see if you're getting too much assistance for your college tuition.
Colleges and universities called this process verification, not an audit like the IRS. Many students are required each and every year to submit, and detail, all of their family's financial information.
It is estimated that a minimum of one third of the students applying for financial aid will have to go through the verification process. This does not have anything to do with your race, age, or gender. It really does boil down to who is lucky and who is not. They will require that you bring in all of your paperwork that you have used for information to fill out your FAFSA. This information will be used to compare with the original numbers you have submitted. If they are off, your EFC, expected family contribution, will be changed. This will affect your ability to borrow money for college.
Colleges have no choice but to verify this information. The government requires that a randomly verify about one third of the students applying for financial aid. You can be 18 years old and applying for your first year of college, or you could be a 32-year-old veteran going back to college, and it does not matter.
Red flags on your financial aid application will also raise questions. If you report that you have $ 250,000 in the bank, and you make $ 30,000 a year and income, this is a red flag. Many colleges and universities will want to audit your financial aid application themselves, not having anything to do with the government.
The best way to do this is to be honest 100% of the time. You should submit the same numbers on your FAFSA as you do your income tax returns that are filed every year for the IRS. You will be able to sleep much easier at night knowing you have been completely honest, even if that means you do not qualify for some financial aid.