Financial Independence

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Financial Independence

• NYSFAAA Conference
• 2009
• Susan L. Mead
• Director of Financial Aid
• Dutchess Community College

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Changes as a result of CCRAA

• In addition to the six questions on the FAFSA
  which had previously been used to determine
• financial independence, three new categories
  were added that expanded the definition.

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New Categories

• 1. Orphan, in foster care or a ward of the court
  at any time when the student was 13 years of age
  or older
• 2. An emancipated minor or in legal guardianship
  as determined by the court
• 3. Unaccompanied youth who is homeless or who is
  at risk of homelessness and is self-supporting

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Category 1

• This category was addressed previously in the
  FAFSA using the following language, Are both of
  your parents deceased, or are you (or were you
  until age 18) a ward/dependent of the court?
• Now an age classification and foster care
  status have been added to this category with the
  question stating, 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?

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Specific Points regarding Category 1

• If a student meets any of the definitions
• orphan, ward of the court, or in foster care,
  after the age of 13, EVEN IF THEIR STATUS
  CHANGES, they are to be considered independent
• Incarceration of a student, does not yield them
  ward of the court status
• PINS petition for a student is the court
  imposing its authority over a juvenile, but if
  the student remains in the custody of the parent,
  they are not considered a ward of the court

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Points to Category 1 continued

• Ward of the Court status in New York State is
  defined when the rights of the parents are
  terminated and the state takes over the welfare
  of the child

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Supporting Documentation

• 1. Official court paperwork, terminating parental
  rights and making the court or state guardian
  of the student.
• 2. Documentation from a foster care agency
  stating when the student was in foster care.
• 3. Copies of death certificates for the parents.
• 4. Social service agencies often work with the
  courts and foster care agencies, so documentation
  from personnel in that agency attesting to the
  status of the student can be used as well.

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Category 2

• An emancipated minor or in legal guardianship
  as determined by the court.
• This is a new category that was part of the
  CCRAA.

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Category 2 Legal guardianship

• Legal guardianship is when the court appoints
  someone to be legally responsible for the care
  and well being of the student, giving that
  individual rights similar to those of the
  parents. In the past, schools have used legal
  guardianship as a basis for a dependency override
• Giving someone other than the parents, custody,
  does not, always, constitute legal guardianship.
  However, the documentation for custody can be
  used as a basis for a dependency override.

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Court language of guardianship vs. custody

• (d) With respect to applications for custody
  rights or guardianship
• 2 initiated in supreme court, county court or
  family court regarding
• 3 custody or guardianship of the person of a
  minor or infant pursuant to
• 4 this part, the domestic relations law, or the
  surrogate's court proce-
• 5 dure act, the right to legal custody or
  guardianship of the person of a
• 6 minor or infant shall mean the right and
  responsibility to make deci-
• 7 sions, including issuing any necessary
  consents, regarding the child's
• 8 protection, education, care and control, health
  and medical needs, and
• 9 the physical custody of the person of the
  child, unless such right is
• 10 otherwise provided or limited by the court.
• Legal guardianship usually implies physical
  custody, but custody does not automatically imply
  legal guardianship!!

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Guardianship in New York State

• Guardianship        A legal guardian is defined
  as the court-appointed guardian of the infant's
  person and/or property.   Family courts, county
  courts, and surrogates courts can appoint a
  guardian pursuant to the Surrogate Courts
  Procedure Act, the family court act or article
  81 of the mental hygiene law.         Courts
  can appoint guardians if the parents are deceased
  or living.   Permanent guardians may be appointed
  by a court when guardianship and custody have
  been given to an authorized agency, or when both
  parents are deceased, or if the guardianship is
  in the childs best interest.Guardians are
  appointed when issues arise concerning trusts,
  wills, estates and the affairs of decedents, or
  property of a minor.   Guardians are also
  appointed when the child is determined to be a
  permanently neglected child (defined under
  McKinneys Social Services Law
  384-b). Certifying Guardian StatusWhen a
  guardian is appointed by the surrogates court,
  a certified copy of the order or decree
  appointing the guardian and of the bond given by
  the guardian shall be filed in the surrogate's
  court of the county in which the infant is
  domiciled, or if the infant be a non-domiciliary
  of the state, in the county in which the infant
  has property . . . and indexed in the book kept
  by the court in which orders or decrees
  appointing guardians are entered.   In family
  court, letters of guardianship are issued by
  the court. 

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Emancipation

• The question asks, Are you an emancipated minor
  as determined by a court in your state of legal
  residence?
• Every state has an age that they designate as the
  age of majority. This is when the student is
  considered an adult and no longer a minor. If
  prior to the age of majority, the student was
  declared emancipated by the court in the state in
  which the student resides, they are considered an
  emancipated minor.

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Supporting documentation

• All of the circumstances in this category, legal
  guardianship as well as emancipation require
• court actions. Documentation should include
  copies of the court papers for either
  guardianship or emancipation.
• Special Note There is no emancipation process
  of minors in New York State. New York State does
  not acknowledge that a minor can be emancipated
  under the age of majority, which is 18.

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Category 3

• Unaccompanied youth who is homeless or who is at
  risk of homelessness and is self-supporting
• This category evolved into three new questions on
  the FAFSA used to help determine financial
  independence.

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Questions require confirmation

• All three of the questions (58-60 2009-2010
  FAFSA) require confirmation from either a school
  district homeless liaison, or the director (or
  designee) of an emergency shelter program funded
  by the Department of Housing and Urban
  Development (HUD). The director (or designee) of
  a runaway or homeless youth basic center or
  transitional living program can determine this as
  well, plus whether a student is independent
  because she is an unaccompanied youth who is
  self-supporting and at risk of being homeless.
  However, according to federal regulations, You
  are not required to verify the answers to the
  homeless youth questions unless you have
  conflicting information. A documented phone call
  with, or a written statement from, one of the
  relevant authorities is sufficient verification.

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Financial Aid Officer designation

• According to the federal guidelines, a financial
  aid administrator can also determine if a student
  is an unaccompanied youth who is either homeless
  or is self-supporting and at risk of being
  homeless. It is important that you examine
  students living situations and claims on a
  case-by-case basis. This is not a dependency
  override or an exercise of professional judgment.
  If a student does not have, and cannot get,
  documentation from any of the above authorities,
  you must determine if she is an unaccompanied
  youth who is homeless or is self-supporting and
  at risk of being homeless.

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Understanding the definitions

• Financial aid officers should use the following
  definitions to determine if the student meets the
  requirements
• Homeless youth definitions
• At risk of being homelesswhen a students
  housing may cease to be fixed, regular, and
  adequate, for example, a student who is being
  evicted and has been unable to find fixed,
  regular, and adequate housing.
• Homelesslacking fixed, regular, and adequate
  housing.
• Self-supportingwhen a student pays for his own
  living expenses, including fixed, regular, and
  adequate housing.
• Unaccompaniedwhen a student is not living in the
  physical custody of a parent or guardian.
• Youtha student who is 21 years old or younger or
  still enrolled in high school as of the date he
  signs the application.
• Housing
• Fixedstationary, permanent, and not subject to
  change.
• Regularused on a predictable, routine, or
  consistent basis.
• Adequatesufficient for meeting both the physical
  and psychological needs typically met in the home

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Documentation from aid officers

• According to the federal guidelines, there is no
  prescribed documentation for an FAAs evaluation
  of the living arrangements of a student, but it
  must demonstrate that she meets the definition of
  this category of independent student. The
  determination may be based on a documented
  interview with the student if there is no written
  documentation available

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For Financial Aid Officer Determinations

• 2009-2010 You should process the FAFSA like a
  dependency override (even though the regulations
  say it is not) as there is no question built into
  the FAFSA this year to allow for this
  determination.
• 2010-2011 There is supposed to be a new
  question addressing homeless youth, but after
  looking at the DRAFT 2010-2011 FAFSA, it appears
  the question is still missing. ?

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Thank You!!!

• Comments or questions???