This guide is intended to assist financial aid administrators at postsecondary education institutions in completing verification, the process of checking the accuracy of the information students provide when they apply for financial aid under student financial assistance (SFA) programs administered by the U.S. Department of Education. The first chapter specifies which programs require verification and which do not, how to handle applications with conflicting information, and which applications must be verified, including the 30 percent verification option and verification exclusions. Chapter 2 details required verification items and documentation, including verification of household size, the number of household members enrolled in postsecondary education, adjusted gross income and U.S. income tax paid, and untaxed income and benefits. The third chapter covers completing the verification process. Sections consider options until verification is complete, if the student fails to provide documentation, and if completed verification reveals no errors; verification status codes; options if verification reveals incorrect or outdated information; the tolerance option instead of correcting minor errors; making corrections; and updating. Chapter 4 discusses rules and procedures for recovering funds from overpayments, overawards, referrals, and suspected fraud. Chapter 5 details requirements concerning written policies, information for the applicant, and a system for identifying inconsistencies. A sample copy of the 1998-99 verification worksheet is included. (DB)