2009-2010 FAFSA Changes Regina Harper Financial Aid Advisor/Scholarship Coordinator Columbus State Community College Ba

1. 2009-2010 FAFSA Changes Regina Harper Financial Aid Advisor/Scholarship Coordinator Columbus State Community College • Back to the Future

2. FAFSA Changes • The order and number of FAFSA questions have changed • Green sections for students/purple for parents • Dependency status questions increased from 8 questions to 13 questions. • The increase in questions gives students additional opportunities be considered “independent” for financial aid purposes.

3. FAFSA Changes continued: • An Unaccompanied Youth who was Homeless, Dislocated Worker, Displaced Homemaker and Underemployed are new for 2009-2010 • There is no longer a Renewal FAFSA • Students can have their FAFSA pre-filled after; • They have chosen “Fill Out Your FAFSA” and filled in their name, date of birth and Social Security Number • Department of Education confirms 2008-2009 FAFSA filed • Question is asked “Would you like to pre-fill your 2009-2010 FAFSA?” • Choose “Yes” then 2009-2010 FAFSA is prefilled

4. FAFSA Question Changes

5. Parents Deceased – Foster Care FAFSA Question 55: At any time since you turned age 13, were both of your parents deceased, were you in foster care or were you a dependent or ward of the court? NOTE: Some states use the phrase “ward of the state” and this is synonymous with “ward of the court” as long as the student is not a ward of the state due to being incarcerated

6. Emancipated Minor FAFSA Question 56: Are you or were you an emancipated minor as determined by a court in your state of legal residence?

7. Emancipation • Students are independent if they are, or were upon reaching the age of majority, emancipated minors (released from control of their parent or guardian) or in legal guardianship, both as adjudicated by a court in their state of legal residence. The state of Ohio does NOT have an emancipation law

8. Unaccompanied Youth who was Homeless - as defined by FAFSA Guidelines “Unaccompanied” means a student is not living in the physical custody of his/her parent or guardian. “Youth” means a student is 21 years of age or younger or is still enrolled in high school as of the day he/she signs the FAFSA application. “Homeless” means lacking fixed, regular and adequate housing, which includes living in shelters, motels or cars, or temporarily living with other people because he/she had nowhere else to go. This is broader than just living “on the street.”

9. Unaccompanied Youth who was Homeless FAFSA Question 58: At any time on or after July 1, 2008, did your high school or school district homeless liaison determine that you were an unaccompanied youth who was homeless? FAFSA Question 59: At any time on or after July 1, 2008, did the director of an emergency shelter or transitional housing program funded by the U. S. Department of Housing and Urban Development determine that you were an unaccompanied youth who was homeless? FAFSA Question 60: At any time on or after July 1, 2008, did the director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless?

10. Zero EFC • The income threshold for determining if a student qualifies for an automatic zero EFC; in accordance with the CCRA has changed from $20,000 to $30,000

11. Dependent Student – Zero EFC • The parents’ combined AGI (for tax filers) or combined income earned from work (for non-filers) is $30,000 or less, and; • Either: (1) the parents were not required to file an IRS Form 1040*, (2) one of them is a dislocated worker as defined in the Workforce Investment Act of 1988, or (3) anyone counted in their household size received a means-tested federal benefit during 2007 or 2008 *See IRS guidelines on who must file a tax return:http://www.irs.gov/newsroom/article/0,,id=105097,00.html

12. Independent Student with Dependents – zero EFC • The students’ and spouses’’ combined AGI (for tax filers) or combined income earned from work (for non-filers) is $30,000 or less, and; • Either: (1) the student and spouse were not required to file an IRS Form 1040*, (2) one of them is a dislocated worker as defined in the Workforce Investment Act of 1988, or (3) anyone counted in their household size received a means-tested federal benefit during 2007 or 2008 *See IRS guidelines on who must file a tax return:http://www.irs.gov/newsroom/article/0,,id=105097,00.html

13. Workforce Investment Act of 1988 • The Workforce Investment Act of 1998 (WIA), which became effective July 1, 2000, established a national workforce preparation and employment system designed to meet both the needs of the nation’s businesses, job seekers, and those who want to further their careers.

14. Independent Student without Dependents – zero EFC • Independent students with no dependents other than a spouse do not qualify for an automatic zero EFC

15. Federal Means Tested Benefits – (affects Special Needs Test/Zero EFC elig) Changed from 12 months to 24 months Independent - FAFSA Questions 98, 99, 100, 101 & 102: In 2007 or 2008, did you (or your spouse) or anyone in your household receive benefits from any of the federal benefits programs listed? Dependent - FAFSA Questions 77, 78, 79, 80 & 81: In 2007 or 2008, did you, your parents, or anyone in your parents’ household receive benefits from any of the federal benefits programs listed?

16. Means-Tested Federal Benefits • Supplemental Security Income Program (SSI) (Does not include regular Social Security Benefits such as those received due to retirement or as a survivor of a decedent.) • Food Stamp Program • Free or Reduced Price School Lunch Program • Temporary Assistance for Needy Families (TANF) • Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) and Children (WIC)

17. 529 College Savings Plan, Coverdell Savings Accounts and the Refund Value of 529 Prepaid Tuition Plans Dependent Student: • Accounts owned by the student (in student’s name) is reported in parental information as an “investment” along with all accounts owned by the parents for any member in the household • If the owner is someone else, such as a noncustodial parent, disbursements from these plans are untaxed income to the student Independent Student: • Accounts owned by the student (and the student’s spouse) is listed as an as an “investment” of the student

18. Professional Judgment Options

19. New - Professional Judgments Situations • Nursing home expenses • Being homeless • Dislocated Worker

20. Dependency Override • Effective for the 2009-2010 award year, A financial aid administrator may make a determination of independence based on a documented determination of independence by another financial aid administrator in the same award year. Sec 480(d)(2), College Cost Reduction and Access Act of 2007

21. Unable to provide Parent Data • FAFSA on the Web allows students to indicate that they believe they have special circumstances that prevent them from providing parent information. FAA can determine if student is an unaccompanied youth and merits a dependency override, must instead provide parent data, or should be permitted to borrow only unsubsidized Stafford loans because they can document that their parents have refused to support him and to provide their information on their FASA.

22. Dislocated Workerand Displaced Homemaker

23. Dislocated Worker (parent and/or student-spouse) (affects Special Needs Test/Zero EFC elig) FAFSA Questions – 85 & 103 In general, a person (parent or student) is considered a dislocated worker if: • They have lost their job • They have been laid off or received a lay-off notice from their job • They are receiving unemployment benefits due to being laid off or losing a job and are unlikely to return to a previous occupation • They are self-employed but are unemployed due to economic conditions or natural disaster

24. Workforce Investment System Dislocated Worker Information Susan Crotty, Deputy Director Phone (614) 752-3091Fax (614) 995-1298Workforce@jfs.ohio.gov See US Code Title 29, 2801

25. Displaced Home(affects Special Needs Test/Zero EFC elig) FAFSA Questions– 85 & 103 (answered under Dislocated Worker questions) • A displaced homemaker is generally a person who previously provided unpaid services to the family (e.g., a stay-at-home mom or dad), is no longer supported by the husband or wife • Is unemployed or underemployed, and is having trouble finding or upgrading employment. What is considered underemployed? • The participant may be employed in an ongoing job, however, is working less than 25 hours per week and desires to work 30 hours per week or more.www.gov.mb.ca/fs/vrmanual/00.html

26. Unemployment Benefits DEAR COLLEAGUE LETTER- May 8, 2009 (GEN-09-05) Subject: Update on the use of Professional Judgment by Financial Aid Administrators http://ifap.ed.gov/dpcletters/GEN0905.html

27. Unemployment Benefits Letter cont: • Unemployment benefits can also be considered zero as the Department of Education, in consultation with the Department of Labor and the Office of management and Budget, has determined that the maximum unemployment benefits available would not have a material impact on the Expected Family Contribution (EFC) of an Independent student. If there are other members of the student’s family for which you have evidence of their receiving unemployment benefits, we encourage you to look at the totality of the family’s economic situation and make appropriate adjustments.

28. FAFSA Worksheets

29. Worksheet A Worksheet has been removed from the FAFSA – No longer report: • Earned Income Credit • Additional Child Tax Credit • Welfare benefits • Untaxed Social Security Benefits

30. Worksheet B and C No longer report the following on the FAFSA: • Special fuel Tax • Foreign Income Exclusion • Credit for federal tax on special fuels All worksheet questions have been incorporated into income questions on the FAFSA. Worksheets no longer exist on the FAFSA

31. Additional Untaxed Income Changes • Stimulus payments received due to the Economic Stimulus Act of 2008 are not to be counted as untaxed income. • Money a dependent student receives from a non-custodial parent that is not part of a child support agreement counts as untaxed income to the student

32. Additional Changes

33. Veterans Benefits FAFSA Questions 44 & 45 (type of benefit): • Post September 11 GI Bill (Chapter 33) has been added • Affects individuals who have served on active duty on or after September 11, 2001 • Student must indicate the specific veterans benefits they are receiving on the FAFSA • The FAFSA no longer asks for monthly amounts received

34. Parents’ Email Address FAFSA Question 71: • Parents can report an email address where confirmation that the FAFSA has been processed can be received

35. Academic Competitiveness Grant (ACG) • Students enrolled less than half-time are eligible for the grant (prorated awards) TEACH Grant - FAFSA Question 32: • TEACH Grant question has been added to FAFSA Are you planning to complete coursework necessary to become and elementary or secondary school teacher, either now or in the future?

36. Other Financial Aid Changes

37. Stafford Loans Interest Rates Subsidized 5.6% for loans disbursed on or after July 1, 2009 Unsubsidized 6.8% (fixed) for loans disbursed on or after July 1, 2009

38. Pell Grant • Maximum award increased: • From $4731 to $5350 for 3 quarters • Pell can be awarded for 4 quarters • $7134 (zero EFC)

39. State Grants • Ohio Student Choice Grant Eliminated for 2009-2010 • Ohio Academic Scholarship Eliminated for 2009-2010 for new applications NOTE: Per information received at the state update – renewal scholarships are still being reviewed for funding. Ohio War Orphans (OWO) Spring 2009 OWO covered 70% of tuition instead of 100% NOTE: Per information received at the state update – funding level has not been determined. However, 70% is a safe option.

40. OCOG/State Block Grant • The Ohio College Opportunity Grant program, beginning in the 2009-2010 academic year, is available only to students enrolled in an Ohio public institution. Alternatively, the state of Ohio will maintain its commitment to Ohio residents enrolled in approved undergraduate degree programs at private institutions by providing eligible institutions with a state block grant to provide additional financial aid to students who demonstrate the highest levels of financial need. • http://regents.ohio.gov/sgs/block_grant/

41. Common Law Marriage Resource

42. Common Law Marriage in Ohio • Is there “common law” marriage in Ohio?Common law marriage in Ohio was abolished effective March 10, 1991. Any persons who entered into a valid common law marriage before that date are still valid, but no couples could create a new common law marriage under Ohio law after that date. However, if parties entered into a valid common law marriage in another state and they moved to Ohio, Ohio will recognize the validity of a common law marriage that was established under the laws of the other state. • A common law marriage is a marriage where the parties do not obtain a marriage certificate or otherwise perform the formalities of a ceremonial marriage, but are married because they agreed between themselves to be married, represented themselves to other people and agencies as being married persons, and have a reputation among their friends, neighbors, community, etc. for being married. Before 1991, common law marriage was fairly common in Ohio. However, since then Ohio (as well as most other states) has abolished common law marriage.

43. Thank You! Any Questions? Any questions? Regina Harper Financial Aid Advisor/Scholarship Coordinator Columbus State Community College rharpe10@cscc.edu (614) 287-2652