the fafsa. why apply for the fafsa? federal title iv aid pell grant acg/smart grant fseog stafford,...
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THE FAFSATHE FAFSA
Why Apply for the FAFSA? Federal Title IV Aid
PELL Grant ACG/Smart Grant FSEOG Stafford, Perkins, Graduate & Parent PLUS loans Federal Work Study TEACH Grant
Schools use the FAFSA to determine student’s eligibility for the following:Federal Some State & Institutional grants
Types of Financial Aid Gift Aid - Grants or scholarships that
do not need to be repaid
Work - Money earned by the student as payment for a job on or off campus
Loans - Borrowed money to be paid back, usually with interest
Federal government
State government
Colleges and universities
Private agencies, companies, foundations, and your parents’ employers
Sources of Financial Aid
Eligibility for State Aid
The TASFA is available to students who qualify, please see the application for specific details.
What does the FAFSA do?
Filling out the FAFSA feeds the information to the Central Processing System (CPS) whichDetermines eligibility for Federal AidCalculates Expected Family Contribution (EFC)Sends paper or electronic notification to student:
Student Aid Report (SAR)Electronic file to schools (ISIR)
What else does CPS do?
CPS matches student information given on the FAFSA with federal databases: Social Security Administration (SSA) Department of Homeland Security (DHS) Selective Service (SS) Veteran’s Affairs (VA) Department of Justice (DOJ) National Student Loan Data System (NSLDS) Department of Defense (DOD) Internal Revenue System (IRS)
Federal PIN PIN (Personal Identification
Number) serves as the electronic signature on ED documents
Both student and at least one custodial parent need PIN to sign the FAFSA electronically
May be used to: Check on FAFSA status Verify and correct FAFSA data Sign Federal Master Promissory
Notes Check Student Title IV History
(NSLDS) If an e-mail address is provided,
PIN will be e-mailed to the PIN applicant within hours
Apply for student and parent PINs at
www.pin.ed.gov
Getting Ready
Before starting the FAFSA, gather: Student driver’s license Student Alien Registration Card Student and Parent
Social Security cards
2009 W-2 Forms and other records of money earned
2009 federal income tax form (even if not completed)
Records of untaxed income
Current bank statements
Business, farm, and other real estate records
Records of stocks, bonds, and other investments Create a file for copies of all financial aid documents submitted
FAFSA ON THE WEB Internet application used by
students and parents to complete electronic FAFSA at
www.fafsa.gov
Sophisticated on-line edits and skip logic so that errors are less likely to be made
On-line help is available for each question
Student and at least one custodial parent should get a federal PIN at
www.pin.ed.gov
There are significant changes to the FOTW site for the 2010-2011 application processing cycle.
Easier URL – www.fafsa.gov
The application steps are shown across the top of the page.
Help text has been added to every page in a Help and Hints box on the right-hand side of the page.
Status messages will now display above the Help and Hints box on the right side of the page.
Student or Parent indicators are now shown on pages that are specifically student or parent.Student only and Parent/Student combined pages are BLUE in color.Parent only pages are PURPLE in color.
2009-2010 2010-2011
FAFSA on the Web Simplification: http://www.nasfaa.org/publications/2009/eafafsapreview112009.html
FAFSA ComponentsThe paper FAFSA asks 107 questions that are
arranged in various headings: Step One1-32:General Student Information, Enrollment
Plans
Step Two 33-45: Student/Spouse Income and Assets
Step Three 46-58: Student Dependency Status
Step Four 59-93: Parent Information (dependent student only) Parent Household Size, Number in College, Federal Means Test Benefit Questions, Dislocated Worker, Income and Asset Information
FAFSA Components cont… Step Five 94-101: Independent Student
Household Size, Number in College, Federal Means Test Benefits, Dislocated Worker
Step Six 102a-h: School Information, Housing Plans
Step Seven 103-107: Signatures
http://ifap.ed.gov/eannouncements/attachments/010610FinalFAFSA1011English.pdf
FAFSA on the Web Worksheet
The 2010-2011 FAFSA on the Web Worksheet may be used to assist student with the transfer of information to FOTW.
DO NOT MAIL THIS WORKSHEETGo to www.fafsa.gov to complete and submit your application.
For more information on federal student aid,visit www.FederalStudentAid.ed.gov.
You can also talk with your college’s financial aid officeabout other types of student aid that may be available.
The FOTW WorksheetA Four Section FormThe FOTW WorksheetA Four Section Form
Section 1 – Student’s biographical information
Section 2 – determines student dependency status
Section 3 – collects parental information for dependent students
Section 4 – collects student finances and information about the independent student
General Student Information
Section 1 consists of questionsName & Social Security NumberCitizenship StatusMarital StatusSelective Service RegistrationParent educational levelDrug convictionExpected Enrollment StatusWhat degree & year of college
General Information Most Common Errors
Most common errors include:•Student incorrectly cites SSN•Student does not include enrollment plans•Student answers citizenship question incorrectly or leaves it blank•Student skips or doesn’t answer gender question •Student skips or doesn’t answer drug conviction question•Student is dependent and bypasses parental
6 7 8 9 1 2 3 - 4 5 -
If U.S. citizen, status will be confirmed by Social Security match
If eligible noncitizen, status will be confirmed by Department of Homeland Security (DHS) match. This includes: U.S. permanent residents with I-551 Conditional permanent residents with I-551C Eligible noncitizens with I-94
If neither a citizen or eligible noncitizen, the student is ineligible for federal/state aid, but might still be eligible for institutional funds
Citizenship Status
Alien Registration Number
If an eligible noncitizen, write in the student’s eight- or nine-digit Alien Registration Number (ARN)
• Precede an eight-digit ARN with a zero
• Copy of Permanent Registration Card might be requested by the Financial Aid Office
9 8 7 6 54 3 2 1
Undocumented Students
if the student is applying to any public college or university, check to see if the student might be eligible for in-state tuition costs
check with colleges and universities to see if institutional financial aid is available
apply for all private scholarships for which the student may be eligible
watch for changes in federal and state laws regarding the eligibility of undocumented or under-documented students
start inquiring in elementary, middle or high school to see if it is possible for younger students to become permanent residents
www.maldef.org/pdf/scholarships.pdf www.latinocollegedollars.org
www.finaid.org/otheraid/undocumented.phtml
NOTE: if the student is undocumented or under-documented
Student Marital Status
The student should check his or her marital status as of the date of filing the FAFSA
If the student is married or remarried, he or she will be asked to provide information about his or her spouse
Was the student convicted of the possession or sale of illegal drugs while receiving federal student aid?
All new first time applicants will skip this question.
Student Aid Eligibility Drug Convictions
Student State of Legal Residence
Student State of Legal Residence• Residency relates to the student’s permanent
home state• if the student is dependent, the state of legal residence is
usually the state in which the custodial parent(s) live
• State of legal residence is also used• to determine eligibility for state grants • in the need calculation to determine the appropriate
allowance for state and other taxes paid by that state’s residents
Grade Level in 2010-2011
When the student begins the 2010-2011 school year, what will be his/her grade level?Never attended college/1st year undergraduateAttended college before/1st year2nd year/sophomore3rd year/junior4th year/senior5th year/other undergraduate1st year graduate/professionalContinuing graduate/professional or beyond
Grade Level in 2010-2011
Degree or Certificate
In the 2010-2011 school year, what degree or certificate will you, the student, be working on?Some options are: - 1st bachelor’s degree - Associate degree (occupational or
technical program) - Associate degree (general
education or transfer program) - Graduate or professional degree
Degree or Certificate Objective
Student Expected Enrollment Status at the Start of the 2010-2011 Academic Year
• When the student begins the 2010-2011 school year, what does he/she expect his/her enrollment status to be?
- full-time - ¾ time - half-time - less than half-time - don’t know
• Report the student's enrollment plans for the college he/she is most likely to attend
• If unsure, report “full-time”
Work-study, Loans, and TEACH Program
If the student is interested in work-study (student employment), student loans, or the TEACH Program, check all appropriate boxes
• Indicating interest does not obligate the student to either work or borrow, nor will it cause the student to lose grants and scholarships
• Not checking work-study and/or loans may restrict some options for limited work-study or loan funds
School Selection
•The student should list the schools he/she is most likely to attend, and then list others to which the student is applying for admission
•While in the School Selection Section, the student will be asked to enter the federal school code for each school to which he/she wants information sent
School Selection
• The student will be asked to select the housing plan that best describes the type of housing the student expects to have while attending each listed school
• The choices for housing are:• On Campus • With Parent• Off Campus
• The student’s choice of housing may affect the amount of financial aid for which he/she is eligible. It is usually more expensive to live on or off campus than with parents or relatives
• Remember, selecting a housing option is not an application for On Campus housing. Check with the colleges/universities for housing information
Student/Spouse Income & Assets
Most common errors of this section include AGI of the student Taxes paid
○ Often the student will list the same amount for AGI as taxes paid so it causes a rejection
Net worth of investments○ Students should not count home family lives in, pensions or life
insurance○ Dependent student includes college savings under their assets, when it
should be reported under parents assets.
STUDENT DEPENDENCY STATUS
STUDENT DEPENDENCY STATUS
Dependency Questions
Answering yes to any of the dependency questions found on step three of the FAFSA (Questions 46-58) will deem a student Independent.
Dependency Criteria24 years of Age Question 46: Must be of the age of
24 at the time of filing
Marital Status Question 47: Must be married at the time of filing
Graduate/Professional Student Question 48: Be a Graduate or Professional student at the
time of filing
Veteran Question 49-50: Must be a Veteran or currently serving in Active Duty other than training at the time of filing
Child or Dependent Question 51 and 52: must support child or dependent 51% or more.
Dependency Criteria
Orphan Question 53: both parents must be deceased any time since the student turned 13 years of age.
Foster Youth Question 53: designates individuals who were in foster care at age of 13 and older even if adopted after that age
Ward of the Court Question 53: at any time since the age of 13 is was the student a dependent of granted custody of the court
Emancipated Minor Question 56
Minors in Legal Guardianship Minors in Legal Guardianship Question 57
Unaccompanied Youth Who Was Homeless (#56,#57,#58) Individuals that have been verified as an
unaccompanied youth who are homeless children or youth who are at risk of homelessness
“Homeless” means lacking fixed, regular and adequate housing, which includes living in shelters, motels or cars, or temporarily living with other people because you had nowhere else to go.
“Unaccompanied” means you are not living in the physical custody of your parent or guardian.
“Youth” means you are 21 years of age or
younger or you are still enrolled in high school as of the day you sign this application.
Dependency Questions and Verification
Although it is not required to verify any of the dependency questions that a student has answered yes to, an FAA may want to consider requesting documentation that supports the students answer if it is the only thing making them independent.
Dependency Overrides (revisited)
Any student who answers no to all the dependency questions is dependent even if student is self-supportingFAFSA Questions 46-58Students who have extenuating
circumstances can file a Request for Independent Status
Dependency Overrides
None of the following examples merit a dependency override:1. Parents refuse to contribute to the student's
education 2. Parents are unwilling to provide information on
the FAFSA or for verification 3. Parents do not claim student as a dependent
for income tax purposes 4. Student demonstrates total self-sufficiency
Unsubsidized Loan As of 08-09If the students parents refuse to provide
information on the FAFSA the student potentially receive an Unsubsidized Stafford loan for the yearly dependent loan limit. This is not a dependency override.
PARENTINFORMATION
Parent Information What meets ED’s definition of a “parent”
Only Biological, Adoptive and Step-parent’sIn case of divorce or separation, provide
information about the parent and/or stepparent the student lived with more in the last 12 months
What is not considered a “parent”Legal guardiansFoster ParentsRelative unless they have legally adopted the
student
Parent E-Mail Address
Provide a parent e-mail address that will be valid at least until the student starts college
If a parent provides an e-mail address, the FAFSA processor will let the parent know the student’s FAFSA has been processed
Parent Information
Most common mistakesName, SSN or DOB do not match records
from Social Security Administration○ If parents are not US citizens, SSN should be
entered in as 9 zeros ○ Parents who are non-citizens still must report
income information by converting monetary value into dollars
Not correcting the estimated values with actual figures once taxes are completed.
Parental Information cont.. Most common Mistakes
Asks for the AGI of the parentsAsks for the taxes paid
○ Often the parent will list the same amount for AGI as taxes paid so it causes a rejection
Net worth of investments
PARENT and Independent Student
INFORMATION
Dislocated Worker
A person may be considered a dislocated worker if he/she: is receiving unemployment benefits due to being laid off or
losing a job and is unlikely to return to a previous occupation has been laid off or received a lay-off notice from a job was self-employed but is now unemployed due to economic
conditions or natural disaster is a displaced homemaker
Tax Return Filing Status for 2009
Parent tax filing status for 2009:
• Required to file a 1040 long form •1040 Tax Line items: 7, 11, 12, 13, 17, 18, and 40
• Determine if they were eligible for a 1040A or EZ
Federal Means Test Benefits
Indicate if the student, his/her parents, or anyone in the parents’ household received benefits in 2008 or 2009 from any of the federal programs listed:Supplemental Security Income (SSI) Food Stamps Free or Reduced Price School Lunch TANF WIC
2009 Additional Financial Information
The student will be asked to report if his or her parents received or paid any of the following items in 2009 (check all that apply)
- Hope and Lifetime Learning tax credits, American Recovery Payment
- Child support paid- Taxable earnings from work-study, assistantships, or fellowships- Grants and scholarship aid reported to the IRS- Combat or special combat pay- Cooperative education program earnings
2009 Untaxed Income
The student will be asked to report if his or her parents had any untaxed income in 2009. Check all that apply. Some examples of the most common items are:
Payments to tax-deferred pensions and savings plans such as 401Ks, IRA deductions, and payments to self-employed
Child support received Housing, food and other living allowances paid to members of the
military and clergy
AssetsReport the current balances of their cash, savings, and checking accounts as of the day they complete the FAFSAThey may also be asked to provide information about the net value of their investments such as real estate, rental property, money market and mutual funds, stocks, bonds and other securitiesQuestions about the net value of their businesses and investment farmsThey should not include the home they live in, the value of life insurance and retirement plans, or the value of a family-owned and controlled small business
Regarding Investments What must be listed as investments
529 plans, Texas Tomorrow Fund, Coverdell savings accounts (educational benefits)
Money market fund, mutual funds, certificates of deposit, stock options, stocks, bonds
Must list the current market value of the investments as of the day the FAFSA was filed
What is not an investmentHome family lives in, life insurance, retirement,
pensions, non-education IRAs
Household Size
Number in Household
• Include in the household:• the student • Spouse (if student is married)• parent(s)• other dependent children, if
the student/parent provide more than half support or the children
• other people, if they now live with the student/parent and will continue to do so from 7/1/10 through 6/30/11, and if the they provide more than half their support now, and will continue to provide support from 7/1/10 through 6/30/11
Household Size For dependent students includes
Parents & siblings For independent students includes
Spouse and children other dependent children, if
the student/parent provide more than half support or the children
other people, if they now live with the student/parent and will continue to do so from 7/1/10 through 6/30/11, and if the they provide more than half their support now
Number in College
Dependent studentsAny siblings (including self) under 24 that will
attend college during school year○ Others who count in the number in college if they
are or will be enrolled at least ½ time during the award year in an eligible degree or certificate program at a school eligible for Title IV (FSA) programs
Independent studentsSpouse & children under 24 if attending college
Signatures
Dependent students: paper FAFSAStudent & one parent must sign paperwork
Dependent students: FAFSA onlineStudent & one parent must submit PIN
Independent students: paper FAFSAStudent must sign paperwork
Independent students: FAFSA onlineStudent must submit PIN
Special Circumstances Contact the Financial Aid Office if there
are circumstances which affect a family’s ability to pay for college such as: Loss or reduction in parent or student income or
assets Death or serious illness Natural disasters affecting parent
income or assets Unusual medical or dental expenses
not covered by insurance Reduction in child support or other untaxed
benefits Financial responsibility for elderly grandparents
Or any other unusual circumstances that affect a family’s ability to contribute to
higher education
After FAFSA Submission CPS will calculate an Expected Family
Contribution (EFC) CPS will send a Student Aid Report (SAR)
to student CPS will send an (ISIR) to the schools
listed on the FAFSA Other documentation and follow – up may
be requiredVerificationSAR Comment C-Codes/FlagsRejects
What Happens Next?
Students and the colleges the student listed receive Student Aid Report (SAR) from federal processor
Students and families review SAR for important information and accuracy of data
Colleges match admission records with financial aid
applications and determine aid eligibility
Colleges mail notices of financial aid eligibility to
admitted students who have completed all required financial aid forms
Student Aid Report (SAR)
After the student completes the FAFSA on the Web, a SAR will be sent to the student An electronic SAR Acknowledgment
will be sent if student provides an email address
A paper SAR will be mailed if no student e-mail address is provided
An electronic copy of the data will be sent to each college or university listed by the student Institutional Student Information Record
○ ISIR
Resources to Help You Along the Way College Cost Reduction and Access Act (CCRAA)
http://www.nasfaa.org/publications/2007/lndependency110807.html
Special Populations: Tips for completing the FAFSA: http://www.nasfaa.org/PDFs/2010/FAFSAFosterTips.pdf
Providing Effective Financial Assistance to Students from Foster Care and Unaccompanied Homeless Youth: http://casey.org/Resources/Publications/pdf/ProvidingEffectiveFinancialAid.pdf
FSA Conference Presentations Application Processing Updates: http://ifap.ed.gov/presentations/2009FSAConference.html
Complete The FAFSA Step By Step Questions: http://studentaid.ed.gov/students/attachments/siteresources/CompletingtheFAFSA10-11.pdf
Questions Questions and Answersand Answers
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