Financial Aid Overview, Application Process and Student Eligibility

Lisa StewartTexas A&M University at Galveston

TASFAA 2013 ABC Workshop

Four components that make up financial aid:

– Scholarships

• Institutional and outside

– Grants

• Federal and state

– Loans

• Federal, state, and institutional

– Work Study

• Federal and state

• Free Application for Federal Student Aid (FAFSA) is the central element of the federal student aid application process

• FAFSA data are used to:

– Compute the expected family contribution (EFC)

– Confirm certain student eligibility criteria

Module Objectives

• Explain how to apply for Title IV aid

• Identify and describe various methods students may use to apply for financial aid

• Practice completion of FAFSA.

Module Objectives

• Explain how FAFSA data are processed by Central Processing System (CPS)

• Identify and describe types of FAFSA processing output

• Review how to:

– Make changes to applicant data

– Override student dependency status

Free Application for Federal Student Aid

There are multiple versions of the FAFSA:

• The paper FAFSA

• FAFSA on the Web (FOTW)

• FAA Access to CPS Online

• FAFSA on the Phone

Electronic FAFSAs

FAFSA may be filed electronically via:

• FAFSA on the web (completed by student)

• FAA Access to CPS Online(completed by advisor)

FAFSA on the Web• Available in English and Spanish

• Real-time FAFSA submission and updates

• Ability to electronically sign using a Federal Student Aid (FSA) Personal Identification Number (PIN)

• Instructions and “help text” for certain questions

• Skip-logic allowing student and/or parent to skip unnecessary questions

• “Chat” help.

FAFSA on the Web cont.

• Built-in edits check for errors prior to submission

• Ability to check application status on-line

• Printable FOTW Worksheet assists in collecting necessary application information

FAA Access to CPS Online

To use:

• School must register with U.S. Department of Education (ED)

• Financial aid administrator must have user ID and password

Dependent Student Status: Special Circumstances

Dependent applicants unable to provide parental information due to a special family circumstance, may use FAFSA on the Web to bypass the parent questions

Internal Revenue Service Data Retrieval

• Process enables students and parents to transfer tax return information from IRS website directly to FOTW application

• IRS Data Retrieval also available for corrections

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Completing FAFSA on the Web

• Answer all applicable questions accurately

• List colleges to receive FAFSA results

• Sign and submit.

• If selecting “Will File”, return and input corrected information.

Signing the FAFSA on the Web

Three methods to sign application:

• Electronically using FSA PIN;

• Sign printed copy of signature page; or

• Sign rejected Student Aid Report (SAR) - (when using CPS completion method)

Application Signatures

• Signing application:

– Certifies accuracy of data

– Acknowledges ED authority to verify information reported with other federal agencies

– Agrees to provide any info requested

– Certifies identity

– Acknowledges consequences of false information

– Agrees to certain application certification statements

Expected Family Contribution (EFC)

• Amount family can reasonably be expected to contribute

• Stays the same regardless of college

• Calculated using FAFSA data and a federal formula

What makes up the EFC?

• Number of individuals in the household

• Number of individuals in college

• Parents income/assets

• Students income/assets

Student Eligibility for Title IV Aid

Students must meet several general eligibility requirements

• Some requirements are student related

• Others relate to the program of study

General Student Eligibility Requirements

Criteria categories:

1. Checked via application process

2. Checked and monitored by school

3. Not specifically checked, but must be resolved if conflicting information exists

Department of Homeland Security Primary Verification

• Database match between Central Processing System (CPS) and Department of Homeland Security (DHS) to confirm eligible noncitizen status

• If primary verification confirms eligible noncitizen status, no further proof is required

DHS Secondary Confirmation

• CPS submits automated DHS secondary confirmation request to DHS if primary verification failed and an Alien Registration Number was provided on the FAFSA

• Automated secondary confirmation usually is completed within 3 days

Social Security Number Three types of Social Security Administration (SSA) database matches:

• Student’s Social Security Number (SSN)

• Parent’s SSN

• Date of death

National Student Loan Data System

Student and parent PLUS borrower must:

• Not be in default on a Title IV loan

• Not owe a Title IV overpayment

• Not have exceeded Title IV loan limits

• Have fully repaid any fraudulently obtained Title IV funds

Drug Convictions• Two sets of student eligibility requirements

apply

• Different means used to determine whether student meets the requirements

– Department of Justice database match

– Question 23 on 2013–14 FAFSA

Institutional Eligibility Regulations

School may not admit as a regular student persons who:

• Do not have high school diploma or its recognized equivalent; and

• Are below the age of compulsory attendance in the state in which school is located

CPS Database Matches

• Social Security Administration:– Social Security Number (SSN)

– Master Death File

– U.S. citizenship

• Department of Homeland Security: – Eligible noncitizen status

• Selective Service System: – Registration with Selective Service

CPS Database Matches

• National Student Loan Data System (NSLDS) for Title IV funds:

– Loan defaults

– Exceeds loan limits

– Any unpaid fraudulently obtained funds

– Repayments

CPS Database Matches

• Department of Defense: Identify eligible students for increased aid due to parent or guardian death as a result of U.S. military service in Iraq or Afghanistan after 9/11/2001

• Department of Veterans Affairs (VA): Verification of veteran status

Application Output

Processed application output sent to:

• Student in form of SAR (paper or electronic)

• School in form of Institutional Student Information Record (ISIR)

• Student’s state agency in form of ISIR

Student Aid Report (SAR)

• Summarizes information reported on application (paper or electronic)

• Provides processing results including:

– EFC

– Messages related to database matches

– Verification selection

– Eligibility for Title IV aid

Application Output

• Student output depends on whether the student provided e-mail address

• CPS sends student:– E-mail Notification of SAR Processing, if

e-mail address is provided;– Paper SAR, if paper FAFSA and no

e-mail address; or– Paper SAR Acknowledgement, if

electronic application and no e-mail address

Paper Student Aid Report

Paper SAR enables students to readily determine:

• Status of their FAFSA (complete or incomplete)

• Eligibility or ineligibility for Federal Pell Grant

• Next steps in the application process

SAR Acknowledgement

SAR Acknowledgement is sent to student whose application data was electronically submitted and no e-mail address provided

• Includes EFC

• Establishes student’s Title IV eligibility

• Cannot be used to make changes

Changing Applicant Data

• Corrections: Changes to incorrect data

• Updates: Changes required for some data items that change after FAFSA was filed

• Adjustments: Changes to applicant data by financial aid administrator using PJ

– Dependency override: Adjustment of student’s status from dependent to independent by FAA

Corrections: Adding Schools

• Adding a school to CPS record is considered a correction

• Student can add schools by:– Using FAFSA on the Web and FSA PIN;

– Calling Federal Student Aid Information Center at 1.800.433.3243 and providing Data Release Number; or

– Submitting correction on paper SAR

Electronic Corrections

• Students with a FSA PIN can electronically make and sign corrections

• FSA PIN or signature of dependent’s parent required only if change is made to parental data

Paper SAR Corrections

• Student or parent must follow SAR instructions

• SAR must be signed by:

– Student

– Parent, if dependent

Items That Must Be Updated

• Household size, if selected for verification

• Number in college, if selected for verification

• Dependency status, whenever change occurs, whether or not selected for verification, except updating not permitted for:

– Change in student’s marital status (This is an option for the school, if it chooses)

Adjustments

• Made only by financial aid administrator

• May be made using FAA Access to CPS Online

• Financial aid administrator can perform dependency overrides on paper FAFSA

• Student’s and/or parent’s signature not required if documentation used as basis of the adjustment is signed

Dependency Status Override

Student may be considered independent if unusual circumstances exist

• Decision must be made and documented on case-by-case basis

• Can override dependency status on initial paper application or after initial application is filed

Dependency Override: After Initial Application

• Override performed using FAA Access to CPS Online (or EDExpress)– Only the school submitting the override will be

sent a revised ISIR.

– Your school may accept a decision made by another school for that award year.

Questions?