2010 Counselor Workshop

OASFAA Disclaimer▼ The Ohio Association of Student Financial Aid Administrators (OASFAA) is a non-profit organization and provides the following

information as a free service to access staff and high school counselors. Access staff and high school counselors have permission to copy and distribute these materials to their students and families. Charges may not be assessed for the material or for the information presented. Permission must be granted for other use of this information or these materials. Contact the Outreach Chairperson listed on the OASFAA web site or e-mail: outreach@oasfaa.org

Agenda

▼Federal Update

▼Changes to FAFSA

▼State Update

▼Review of Resources Available

▼What is Professional Judgment?

▼Question and Answers

FEDERAL UPDATE

Direct Loan Transition

▼Legislation: Health Care and Education Reconciliation Act of 2010

▼Federal Loans 100% Direct July 1, 2010 and forward

Direct Loan Transition

▼Hired 4 additional servicers

– ACS (current servicer)

– Nelnet

– Sallie Mae

– Great Lakes Educational Loan Services

– AES/PHEAA▼Will provide repayment services for

borrowers….no origination responsibility

Pell Updates

▼Pell Grant—this is a federal grant, need based as determined by the Free Application for Federal Student Aid (FAFSA)

▼Maximum award for 2010-11 is $5550.

Pell Updates

▼Allows students to receive two Pell Grants during a single academic year– Pell max = $3,000

• Summer = $1,000• Fall = $1,000• Spring = $1,000• Summer = $1,000

▼Must be enrolled at least half time each term for 2nd Pell Grant in same year

Pell Updates

▼Sets time limit of up to 18 semesters or equivalent for those who receive first Pell Grant on/after 7/1/08.

▼No Pell for those who were incarcerated for sexual offense.

▼Auto Zero EFC for Pell eligible students whose parents or guardian was a member of Armed Forces and died in Iraq or Afghanistan after 9/11/01.

Department of Defense Match

▼Designed to identify students who are either:– Eligible for a maximum Pell Grant, or– An award under the Iraq and Afghanistan

Service Grant Program.

Department of Defense Match

▼In May 2010, began matching applicant records in CPS against DoD file– 2010 – 11 applicants –

• New DoD flag set on ISIRs• Letters to students

▼To ensure all eligible students are awarded aid appropriately, FAA’s must pay attention to new ISIR flag

TEACH Service Obligation

▼ Full-time teacher in high need field▼ Must teach in low-income school for four years

within 8 years of completion of program▼ No credit for part-time teaching▼ No partial fulfillment of service▼ Failure to complete service obligation causes

grant to convert to Direct Unsubsidized Stafford Loan and interest is charged back to the date of grant disbursement

TEACH - Future update

▼Effective 7/1/10:– If recipient is teaching in academic field

designated as high-need by the state at the time grant was received, recipient may fulfill teaching obligation in that field even if that field is no longer considered high need when they begin teaching.

Federal Program Changes

▼ACG/Smart award is eliminated

▼Income threshold for the Automatic Zero EFC will increase to $31,000

▼Beginning 2011-2012 family must file FAFSA for Parent PLUS Loan– 98% already file

CHANGES TO FAFSA

FAFSA Changes for 2011-12:

▼Question changes

▼FOTW homepage improved

▼Options presented will be customized to applicant

▼FAFSA Corrections re-designed

▼Expanded IRS Data Retrieval tool

New Question

▼Name and location of high school from which student received diploma

Modified Questions

▼Loan/work study preferences

▼New language references food stamps by federal program’s new name (SNAP)

▼New language adds American Opportunity Credit to references of education tax credits

Deleted Questions

▼Anticipated enrollment status

▼TEACH Grant

▼Academic Competitiveness Grant (ACG) eligibility

New FAFSA Homepage

Students will be accessing a simplified homepage.

Single Log in Function

All application options will be accessible with one log in:– Starting a FAFSA– Continue a FAFSA– Corrections– Adding a School Code– Signing the FAFSA– Status Check– View SAR

Search

FOOTER

NEED HELP?

Home Contact Us Browse Help

STUDENT

Help & HintsLogin

Date of Birth

Last Name

Social Security Number

First Name

Student Information

By clicking Next, you agree to the terms and conditions of the US Government System Warning.

My FAFSA Page

Customized information will be presented to a student depending on their current FAFSA status.

My FAFSA Page

Customized information will be presented to a student depending on their current FAFSA status.

My FAFSA Page

Corrections Redesign

Enhancements Include:– New Layout– Improved page

navigation and edits

– Help and Hints

IRS Data Retrieval Tool

▼Students completing a 2011-12 FAFSA will be able to utilize IRS data retrieval beginning January 30, 2011

▼Data available in English and Spanish

▼IRS information available within several days for electronic filers or several weeks for paper tax filers

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How IRS Retrieval Work

How IRS Retrieval Works

How IRS Retrieval Works

How IRS Retrieval Works

How IRS Retrieval Works

How IRS Retrieval Works

IRS Data Retrieval Authentication

IRS Data Retrieval Tax Data

Successful Transfer of IRS Data

FAFSA Processing Results

▼CPS notifies student of FAFSA processing results by:– Email notification containing a direct link to

student’s electronic SAR if student’s email was provided on paper or electronic FAFSA

▼Student with FSA PIN can view SAR on line at www.fafsa.gov

Frequent FAFSA Errors

▼ Parent and student Social Security Numbers▼ Divorced/remarried parental information▼ Income earned by parents/stepparents▼ Untaxed Income▼ U.S. income taxes paid▼ Household size▼ Number of household members in college▼ Real estate and investment net worth

Verification

▼Selected by CPS or the institution

▼Applicant & parent: Keep copies of 2010 Tax documents

▼If selected, completion is required before aid can be disbursed

▼Verification materials are sent to the financial aid office, not federal processor

Completion of FAFSA without Parental

Information

Parental Information

▼FOTW asks whether student will provide parental data

▼If no, student indicates he or she meets special circumstances criteria

▼Student can submit FAFSA without parent information

▼FAFSA will have reject code– Student needs to work with school to

complete application

Parents Refuse to Provide Information

▼Student indicates situation on FOTW, choosing option that he or she is applying only for an unsubsidized loan

▼Student submits FAFSA without parental information

▼EFC not calculated

▼Student must contact school regarding documentation and decision

FAFSA

▼4Federal Student Aid Information Center: 1-800-433-32431-800-4FEDAID

▼www.federalstudentaid.ed.gov

▼www.fsa4counselors.ed.gov

FSA Publications

▼Paper FAFSA’s will not be available for order in bulk

▼FAFSA on the Web Worksheet will still be available for bulk order by schools

▼Students can obtain 3 paper FAFSA’s by calling the Federal Student Aid Information Center at 1-800-4- FED-AID (800-433-3243) or by visiting

www.edpubs.org

FSA Pubs Ordering Website

www.FSAPubs.gov– Use your OPEID to

order supplies

FAFSA4caster

Developed to:• Foster early awareness with the financial aid

application process and form • Serve as an early analysis tool informing

college affordability • Reduce the time required to submit the

"official" financial aid application in the student's senior year of high school

• New change: No longer calculates an estimated EFC

FAFSA4caster▼ Early estimate of

student’s federal aid eligibility

▼ Improvements for 2011-12– Integrated with FAFSA site– Simplified with fewer

questions and more assumptions

▼ No longer save results or pre-populate FAFSA

Homepage Makeover

STATE UPDATE

State Financial Aid Overview

Ohio College Opportunity Grant (OCOG), http://regents.ohio.gov/sgs/ocog/Ohio War Orphans Scholarship, http://regents.ohio.gov/sgs/war_orphans/Ohio Safety Officers Memorial, http://regents.ohio.gov/sgs/oso/Nurse Education Assistance Loan Program, http://regents.ohio.gov/sgs/nealp/National Guard Scholarship, http://www.ongsp.org Choose Ohio First Scholarship, http://uso.edu/opportunities/partnership/chooseohio1st/index.php

Ohio College Opportunity Grant OCOG

OCOG is a $76 million program - Student’s Pell grant and EFC must be applied toward tuition/general fees before the OCOG award can be determined.

Community colleges -- Pell/EFC combination should cover tuition and general fees at all community colleges and regional campuses. No OCOG awards will be available to students attending these institutions and Central State. Shawnee students limited $480to $480.

State Financial Aid News

For OCOG eligible students enrolled at private, non-profit institutions, the maximum award is $1,848—at public main campuses, the maximum award is $888.

Students at private, for-profit institutions not OCOG eligible

War Orphans Scholarship covers 80% of tuition and fees at public universities and community colleges$4,650 annual award at independent and proprietary

Ohio Academic Scholarship is $2,000 at all institutions

Help for Students

Speak with an Information Specialist

Call 1-877-I-ATTAIN (428-8246)Mon. – Fri. 10am – 6pm

College Goal Sunday

Sunday, February 13, 2011 2:00 PM▼ Locations throughout Ohio▼ College Goal Sunday offers the opportunity to have expert

help completing the Free Application for Federal Student Aid (FAFSA).

▼ Financial aid professionals from Ohio colleges & universities will be available walk you and your family through the financial aid process.

▼ College Goal Sunday is brought to you by the Ohio Association of Student Financial Aid Administrators (OASFAA).

▼ Need Information for College Goal Sunday?

Call Ohio’s College Access Information Hotline1-877-428-8246

Ohio College Goal Sunday

▼ Volunteer registration is open

▼ Student/Family registration is open

www.ohiocollegegoalsunday.org

RESOURCES

www.fsa4counselors.ed.gov

www.oasfaa.org

OASFAA for Counselors

Are You Getting the Message?

www.ohiocap.org

college.gov

studentaid.ed.gov

Student Aid on Web

MyFSA Tools:– Interactive tools that help

students plan for college– Scholarship and college

searches – Financial aid wizard tool:

estimate college cost, estimate EFC, and track/compare award letters

– Transfer data to FAFSA – and college applications – (no longer transfer data

to FAFSA4caster)

Questions?

What is Professional Judgment?

Professional Judgment

Professional Judgment allows the school's Financial Aid Administrator to make adjustments to the data elements on the FAFSA and to override a student's dependency status.

Professional judgment is driven by written documentation.

Professional Judgment

Case-by-case Unusual circumstances

Per Webster: rare, extraordinary, uncommon, unexpected, distinctive

Documented!

Supporting Written documentation

Professional Judgment

School must first resolve any conflicting information before making an adjustment

School must verify base year data if selected for verification

Adjustment is only valid at the school making it

Must use resulting EFC consistently for all FSA funds

Professional Judgment

Special Circumstances

Items that can’t be included on FAFSA

Contact each college student has applied to Do Not send a letter with the FAFSA to the Federal Processor, it will be discarded.

Each college will:Request documentationReview situation on case by case basisDecisions final and cannot be appealed to U.S. Department of Education

Professional Judgment

Examples of Special Circumstances• Parent loss of income• Marital Status changing from married/remarried to

one parent• Medical not covered by insurance• Property loss not covered by insurance• Unusual debt or one-time income• Tuition expenses at an elementary or secondary

school• Parent in college

Professional Judgment

Special Circumstances are NOT;• Vacation expenses• Tithing expenses• Standard living expenses such as

utilities, cable bills, credit card payments, children’s allowances

• Standard maintenance items such as lawn care and home repair

Professional Judgment To adjust for Special Circumstances

the FA Administrator• Must adjust a data element in the formula

(example; AGI, taxes paid etc.)

• May NOT:• Change the formula itself (e.g. asset

conversion rate) or the tables• Make an adjustment to the PC, SC, or EFC• Make the adjustment on the INITIAL

FAFSA

Professional Judgment

Student Dependency Status

What Makes a Student Independent?

-Born before 1/1/88 (for 2011-12 year)-Married-Graduate or professional student-Active duty military for purposes other than training-Veteran-Children-Dependents other than children or spouse-Orphan, foster care, dependent/ward of the court-Emancipated minor-Legal guardianship-Homeless or at risk of being homeless

Professional Judgment

Dependency Overrides Conditions that do NOT qualify as “unusual

circumstances” individually or in combination

• Parents refuse to contribute

• Parents are unwilling to provide information • Parents do not claim the student as an

income tax dependent

• Student demonstrates totally self-sufficiency

Professional Judgment

Possible Dependency Override:• Student’s voluntary or involuntary removal from

parents’ home due to an abusive situation that threatened the student’s safety and/or health

• Incapacity of parents such as incarceration or a disability or mental or physical illness

• Inability of the student to locate the parent(s) after making reasonable efforts

• Other extenuating circumstances sufficiently documented by a signed letter from a third party

Professional Judgment

Dependency Override Documentation• Must document the reason for the

determination and maintain documentation supporting the decision

• Supporting documentation from a third party with knowledge of the unusual circumstances

Professional Judgment

Dependency Overrides Documentation cont’d• Third party includes—

◦ Counselors or teachers◦ Clergy◦ Community groups◦ Government agencies◦ Medical personnel◦ Courts◦ Prison administrators

Professional Judgment

Documentation!

Documentation!

Documentation!