The Application Process and Student Eligibility

1. The Application Process and Student Eligibility

2. Free Application for Federal Student Aid (FAFSA) is central element of federal student aid application process • FAFSA data are used to: • Compute the expected family contribution (EFC) • Confirm certain student eligibility criteria via database matches with federal agencies

3. Supplemental Forms and Applications • Required by some states and institutions to determine eligibility for state and institutional aid programs • Cannot be required to determine Title IV eligibility, except when: • Verifying FAFSA data • Resolving conflicting information

4. 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 ofFAFSA on the Web Worksheet

5. 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

6. 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

7. Obtaining the Paper FAFSA Students and parents can obtain paper FAFSA by: • Calling Federal Student Aid Information Center (FSAIC) at 1.800.4.FED.AID (or 1.800.433.3243) • Downloading PDF version

8. Downloading PDF FAFSA • Students • www.FederalStudentAid.ed.gov • Institutions • www.FSAPubs.gov

9. Paper FAFSA FAFSA is a 10-page booklet containing: • Four instructional pages for assistance in completing form • Six application pages • Dependent students complete yellow and purple sections, and  • Independent students (and their spouses, if applicable) complete only yellow sections

10. Electronic FAFSAs • FAFSA may be filed electronically via: • FOTW • FAA Access to CPS Online

11. 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) • Seven-step organization • Instructions and “help text” for certain questions • Skip-logic allowing student and/or parent to skip unnecessary questions

12. FAFSA on the Web • 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

13. 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

14. Personal Identification Number (PIN) Both parent and student may apply for FSA PIN which may be used as: • Personal identifier to access personal information on various FSA electronic systems • Electronic signature to sign FOTW • May obtain FSA PIN before or after completing FOTW

15. Personal Identification Number • First-time PIN applicants and students requesting duplicate PIN or changing PIN can receive their PIN in “real time” • Applicants can create their own PIN identifier when they apply or have PIN assigned

16. FAFSA on the Phone • FOTP provides applicants with assistance from customer service representative in completing FAFSA • Alternative for FAFSA applicants; not intended to replace FOTW • Intended for applicants who have limited or no Internet access, and who are facing pressing deadlines

17. 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

18. 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

19. Completing FAFSA on the Web • Reminder to answer all applicable questions accurately • Instructions on listing colleges to receive FAFSA • Instructions on completing the preparer’s section, if applicable • Instructions on reviewing application data on-line • Instructions on signing the FAFSA

20. 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)

21. Application Signatures • Application must be dated and signed by: • Student and one parent if student is dependent; or • Student if student is independent • Signing application: Certifies accuracy of data, acknowledges ED authority to verify information reported with other federal agencies, agrees to provide any information requested, certifies identity, acknowledges consequences of false information, and agrees to certain application certification statements

22. Signing Electronically If the student and/or parent has a FSA PIN, he or she may sign application electronically after completing application or after submitting it for processing

23. Signatures Student and parent (if dependent) may also sign application by: • Printing, signing, and mailing FOTW signature page to CPS; or • Signing rejected SAR and returning it to CPS address on SAR

24. 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

25. 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

26. DHS 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

27. 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 Free Application for Federal Student Aid (FAFSA) • Automated secondary confirmation usually is completed within 3 days

28. Manual Secondary Confirmation School must initiate if: • Eligible noncitizen status not confirmed via automated DHS secondary confirmation; • Results of automated secondary confirmation not received after at least 5, but not >15 business days of receiving the Institutional Student Information Record (ISIR); • School has conflicting information; or • School believes student information is incorrect

29. Social Security Number Three types of Social Security Administration (SSA)database matches: • Student’s Social Security Number (SSN) • Parent’s SSN • Date of death

30. 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

31. 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 2011–12 FAFSA

32. 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

33. Short-Term Programs To be eligible, short-term program must: • Admit as regular students some persons who have not completed equivalent of associate degree • Have completion and placement rates of at least 70% • Not be more than 50% longer than minimum training program required for specified occupation • Have been in existence for at least 1 year

34. FAA Access to CPS Online • Student and parent, if applicable, must sign before school transmits • Signature page must be maintained in accordance with record retention requirements

35. CPS Database Matches • Social Security Administration (SSA): • Social Security Number (SSN) • Master Death File • U.S. citizenship • Department of Homeland Security (DHS): • Eligible noncitizen status • Selective Service System: • Registration with Selective Service

36. CPS Database Matches • National Student Loan Data System (NSLDS) for Title IV funds: • Loan defaults • Exceeds loan limits • Any unpaid fraudulently obtained funds • Repayments

37. 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

38. Hold File Match Department of Justice Hold File: • Title IV suspension or termination due to drug conviction

39. EFC Calculations • Official EFC: Calculated using CPS edits and database matches • If eligible for Simplified Needs Test (SNT), CPS calculates primary and secondary EFCs if asset data provided • Primary EFC - assets excluded • Secondary EFC - assets included

40. 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

41. Student Aid Report • 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

42. 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

43. E-mail Notification of SAR Processing • E-mail notifying student that FAFSA processing results are available on-line • Contains link to student’s SAR on the Web • If returned as undeliverable, paper SAR or SAR Acknowledgement is sent

44. 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

45. 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

46. Institutional Student Information Record Used by school to: • Document Title IV eligibility • Correct or update applicant data • Perform professional judgment (PJ) adjustments, including dependency overrides

47. Changing Applicant Data • Corrections: Changes to incorrectdata • 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

48. 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 (DRN); or • Submitting correction on paper SAR

49. Corrections: Adding Schools • Schools can add Federal School Code to CPS record using FAA Access to CPS Online and student’s DRN • Must add its own code no later than 30 days after school receives SAR on which it is not listed

50. 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