Session FF-04

1. Session FF-04 FAFSA Free Application for Federal Student Aid Yolanda Adams U.S. Department of Education

2. What Is The FAFSA? • Department of Education’s free application for Title IV aid • Collects applicant information required by statute • Processed by Department’s Central Processing System (CPS) • All students must complete unless parent PLUS loan is only aid requested

3. Central Processing System (CPS) • Processes the FAFSA for use in determining student eligibility • Edits data for errors • Calculates expected family contribution (EFC) • Sends output documents • Paper or electronic output to students • Electronic file to schools

4. Central Processing System (CPS) • Matches student information with other databases • Social Security Administration • Department of Homeland Security (DHS) • Selective Service • Department of Veterans Affairs • Department of Justice • National Student Loan Data System

5. Methods For Filing FAFSA Student • Paper application/PDF application • FAFSA on the Web • Renewal FAFSA on the Web School • FAA Access to CPS on-line • Must have completed and signed copy of paper FAFSA

6. www.fafsa.ed.gov

7. www.pin.ed.gov

8. www.fafsa.ed.gov/FOTWWebApp/faa/faa.jsp

9. FAFSA InstructionsAvailable online at http://studentaid.ed.gov/students/publications/completing_fafsa/2008_2009/index.html

10. Paper FAFSA • Schools may receive limited number of paper applications • Students may order paper FAFSA by calling 1-800-4FEDAID • Students and schools may print PDF FAFSA http://www.federalstudentaid.ed.gov/ • PDF version is official application for submission to CPS • PDF version is acceptable as documentation for applications submitted via FAA Access to CPS

11. FOTW Worksheet • Paper worksheet that follows web version of FAFSA • Cannot be used as official application for submission to CPS • Recommended for applicants using FAFSA on the Web (FOTW)

12. CPS Web Applications Demo • http://fafsademo.test.ed.gov • User ID – eddemo • Password - fafsatest • Demos both FAFSA on the Web and FAA Access to CPS on-line • Ideal for new staff, demonstrations, or practice • Demo student information is preloaded

13. FAFSA Sections • General Student Information • Student and Spouse Income & Assets • Dependency Status • Parent Information (parent of dependent student) • Household Size and Number in College (independent student only) • College Information • Signature Block

14. FAFSA Data • Income is “base year” – calendar year prior to award year • Marital status, household size and assets are reported as of date of application

15. Social Security Number Student enters incorrect SSN • Must correct SSN in question 8 • CPS identifier will carry original SSN • COD will carry corrected SSN • Student SSN and first two letters of last name match application already in CPS database • If SSN entered incorrectly, must file new FAFSA • If SSN entered correctly, must file “correction application” • Call 703-284-5666

16. Student’s Marital Status • Question 16 • Marital status at time of application remains for entire award year • May not change marital status once application is filed • May not change dependency status or household size because of change to student’s marital status

17. Question 23 - Drug Conviction • An applicant loses eligibility for Title IV aid if was convicted for a drug-related offense that occurred while enrolled and receiving Title IV aid • Date of ineligibility begins on date of conviction

18. Questions 24 & 25 • Parent’s education level requested because some states award aid to first generation college students • Answers not required for EFC processing

19. Question 26 – Secondary School • Four choices • High school diploma • GED certificate • Home schooled • None of the above

20. Question 32 - TEACH Grant Now on paper FAFSA and FOTW

21. Questions 33b & 82b • Reported estimated income information – tax return not yet completed • Estimated information is not automatically conflicting information • After April 15 prior to start of award year, CPS requeststhat families “correct” information to reflect actual tax information

22. Qualified Education Benefits Included in asset questions 42 & 92 • Include Coverdell savings accounts, state prepaid tuition plans and 529 prepaid and savings plans • All are included in assets on FAFSA • Report as asset of dependent student’s parent if parent or dependent student is owner of the account or plan • Report as asset of independent student if student/spouse owns the account/plan

23. Family Ownership of Small Business Asset Questions 43 and 93 • Exclude from assets on FAFSA any part of a family owned and controlled business with no more than 100 FT employees or FTE’s

24. Worksheet C • Separate worksheet has been eliminated • Information from Worksheet C is now reported in questions 46 a-e & 94 a-e • Includes combat pay or special combat pay

25. Untaxed Income • Worksheets A & B are eliminated • Income now reported in questions 47 a-j & 95 a-i • CCRAA excluded from untaxed income • Additional child tax credits claimed • Welfare benefits • Earned Income Credit • Special Fuel Tax Credit • Foreign Income Exclusion • Untaxed Social Security Benefits

26. Dependency Questions Step Three • 13 criteria set in the law • Student must be able to answer “yes” to at least one question to be independent

27. Dependency Questions • Must be age 24 or older by December 31 of award year • Married as of date of application • Common law marriage in states where recognized • Same-sex marriages are not recognized for Title IV purposes • Separated not divorced answers yes • Master’s or doctoral program

28. Dependency Questions • Serving on active duty in U.S. armed forces for purposes other than training • Veteran of U.S. Armed forces • Served active duty for purpose other than training and discharged other than dishonorably • Database match with VA • Have children for whom provide more than 50% support and will continue throughout award year

29. Dependency Questions • Have dependents other than children and spouse for whom provide more than 50% support and will continue throughout award year • At age 13 or older, were both parents deceased or was student in foster care or dependent/ward of the court • Emancipated minor as of date of application • In legal guardianship as of date of application

30. Dependency Questions • Unaccompanied homeless youth on/after 7/1/08 by high school/school district • Unaccompanied homeless youth on/after 7/1/08 by emergency shelter program • Unaccompanied youth who is homeless or self-supporting and at risk of being homeless on/after 7/1/08 by director of runaway or homeless youth basic center of transitional living program

31. Who Is A Parent? • Biological and adoptive • Stepparent currently married to above • Grandparents cannot be parents on the FAFSA unlessthey have legally adopted the student

32. Questions 63-71 • Parent’s SSN, Name, and DOB • Would be used if IRS database match begins • At least one parent’s data must match Social Security administration database • Parent without SSN must enter all zeroes in SSN field • Parent’s e-mail address

33. Federal Means-Tested Benefits Questions 77-81 & 98-102 • Additional criteria for simplified needs test and automatic zero EFC • Answering these questions will not affect receipt of these programs

34. Dislocated Worker • Questions 85 & 103 • CCRAA added as another criteria for simplified needs test and automatic zero EFC • Definition in FAFSA instructions

35. Step Seven – Signature Certification by student, spouse, and parent • To use funds for educational purposes • Student not in default or overpayment • Student will not receive Pell at more than one school concurrently • Agree to provide information to verify accuracy of application, including confirmation from IRS • Privacy of PIN • Criminal offense to provide false or misleading information

36. Yolanda Adams Training Officer 404-562-6291 yolanda.adams@ed.gov Contact Information Your feedback and comments are appreciated.