Financial Aid Overview, Application Process and Student Eligibility

1. Financial Aid Overview, Application Process and Student Eligibility Lisa Stewart Texas A&M University at Galveston TASFAA 2013 ABC Workshop

2. Four components that make up financial aid: • Scholarships • Institutional and outside • Grants • Federal and state • Loans • Federal, state, and institutional • Work Study • Federal and state

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

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 of FAFSA.

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. Electronic FAFSAs • FAFSA may be filed electronically via: • FAFSA on the web (completed by student) • FAA Access to CPS Online(completed by advisor)

8. 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) • Instructions and “help text” for certain questions • Skip-logic allowing student and/or parent to skip unnecessary questions • “Chat” help.

9. FAFSA on the Web cont. • 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

10. 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

11. 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

12. 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

16. Completing FAFSA on the Web • Answer all applicable questions accurately • List colleges to receive FAFSA results • Sign and submit. • If selecting “Will File”, return and input corrected information.

17. 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) - (when using CPS completion method)

18. Application Signatures • Signing application: • Certifies accuracy of data • Acknowledges ED authority to verify information reported with other federal agencies • Agrees to provide any info requested • Certifies identity • Acknowledges consequences of false information • Agrees to certain application certification statements

19. Expected Family Contribution (EFC) • Amount family can reasonably be expected to contribute • Stays the same regardless of college • Calculated using FAFSA data and a federal formula

20. What makes up the EFC? • Number of individuals in the household • Number of individuals in college • Parents income/assets • Students income/assets

21. 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

22. 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

23. Department of Homeland Security 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

24. 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 FAFSA • Automated secondary confirmation usually is completed within 3 days

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

26. 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

27. 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 2013–14 FAFSA

28. 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

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

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

31. 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

32. 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

33. Student Aid Report (SAR) • 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

34. 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

35. 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

36. 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

37. Changing Applicant Data • Corrections: Changes to incorrect data • 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

38. 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; or • Submitting correction on paper SAR

39. 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

40. Paper SAR Corrections • Student or parent must follow SAR instructions • SAR must be signed by: • Student • Parent, if dependent

41. Items That Must Be Updated • Household size, if selected for verification • Number in college, if selected for verification • Dependency status, whenever change occurs, whether or not selected for verification, except updating not permitted for: • Change in student’s marital status (This is an option for the school, if it chooses)

42. Adjustments • Made only by financial aid administrator • May be made using FAA Access to CPS Online • Financial aid administrator can perform dependency overrides on paper FAFSA • Student’s and/or parent’s signature not required if documentation used as basis of the adjustment is signed

43. Dependency Status Override Student may be considered independent if unusual circumstances exist • Decision must be made and documented on case-by-case basis • Can override dependency status on initial paper application or after initial application is filed

44. Dependency Override: After Initial Application • Override performed using FAA Access to CPS Online (or EDExpress) • Only the school submitting the override will be sent a revised ISIR. • Your school may accept a decision made by another school for that award year.

45. Questions?