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