Variable Interest Rate - An interest rate that changes, usually annually, according to prescribed methods.

Variable Interest Rate Conversion - The conversion of a fixed interest rate to a annually variable interest rate, which carries a federally mandated cap.

Verbal Request - A request that is made orally, as opposed to in writing.

Verification - A school's procedure for checking the accuracy of information reported by the student on the FAFSA. Verification may include requesting a copy of the tax returns filed by the student and, if applicable, the student's parents.

Voluntary Flexible Agreement - The 1998 reauthorization of the Higher Education Act authorized DOE to negotiate modifications to its relationship with up to six guaranty agencies. These modifications were termed voluntary flexible agreements, and they were intended to update and advance the regulations placed on FFEL Program guaranty agencies.