FAFSA

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Session 31

• FAFSA
• Free Application for Federal Student Aid
• Angela Smith
• Bob Tschinkel

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What is the FAFSA?

• Department of Educations free application for
  Title IV aid
• Collects applicant information required by
  statute
• Processed by Departments Central Processing
  System (CPS)
• All students must complete unless parent PLUS is
  only aid requested

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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

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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

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Methods For Filing FAFSA

• Student
• Paper 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

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www.fafsa.ed.gov
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www.pin.ed.gov
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www.fafsa.ed.gov/FOTWWebApp/faa/faa.jsp
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• FAFSA InstructionsAvailable online at
• http//studentaid.ed.gov/students/publications/com
  pleting_fafsa/index.html

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FOTW Worksheet

• Recommended for applicants using FAFSA on the Web
  (FOTW)
• Paper worksheet that follows web version of FAFSA
• FAFSA Worksheets A, B, C are included in FOTW
  Worksheet

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(No Transcript)
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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

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FAFSA Sections

1. General Student Information
2. Student/Spouse Income and Assets
3. Student Dependency Status
4. Parent Information (dependent student only)
5. Household Size and Number in College (independent
   student only)
6. School Information
7. Signature Requirements

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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

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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 enters SSN and first two letters of last
  name that match whats already in CPS database
• If SSN entered incorrectly, must file new FAFSA
• If SSN entered correctly, must file correction
  application
• Call 703-284-5666

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Students Marital Status - 16

• Marital status at time of application remains for
  entire award year
• May not change marital status once application is
  filed
• No change to dependency status or household size

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Questions 29 30

• Parents education level requested because some
  states award aid to first generation college
  students
• Answers not required for EFC processing

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Question 31 - 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

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Questions 32b 76b

• Reported estimated income information tax
  return not yet filed
• Estimated information not automatically
  conflicting information
• After April 15 of award year, CPS requests that
  families correct information to reflect actual
  tax information

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Questions 44 88

• Qualified education benefits 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 students parent if
  parent is owner of the account or plan
• Never considered an asset of a dependent student
• Report as asset of independent student if
  student/spouse owns the account/plan

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Family Ownership of Small Business

• Asset Questions 45 and 89
• Exclude from assets on FAFSA any part of a family
  owned and controlled business with no more than
  100 FT employees or FTEs

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Dependency Questions

• Step Three
• 8 criteria set in the law
• Student must be able to answer yes to at least
  one question to be independent

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Dependency Questions

• Must be age 24 or older by December 31 of award
  year
• Enrolled in a masters, doctorate, or graduate
  certificate program
• Married as of date of application
• Common law marriage in states where recognized
• Same-sex marriages are not recognized for Title
  IV purposes

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Dependency Questions

• Have children for whom provide more than 50
  support
• Have dependents other than children and spouse
  for whom provide more than 50 support
• How do you measure 50?

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Dependency Questions

• Both parents deceased OR ward of court at age
  18
• 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

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Who Is A Parent?

• Biological and adoptive
• Stepparent currently married to above
• Legal guardians cannot be parents on the FAFSA
• Grandparents cannot be parents on the FAFSA
  unless they have legally adopted the student

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Questions 55-62

• Parents SSN, Name, and DOB
• Would be used if IRS database match begins
• At least one parents data must match Social
  Security administration database
• Parent without SSN must enter all zeroes in SSN
  field

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Federal Means-Tested Benefits

• Questions 71-75 92-96
• Additional criteria for simplified needs test and
  automatic zero EFC
• Is not conflicting information if reports these
  but does not report corresponding income on
  Worksheets A
• Answering these questions will not affect receipt
  of these programs

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EXERCISEFAFSA QUESTIONS
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Resources

• 2007-2008 FSA Handbook, Application and
  Verification Guide (AVG), Chapters 1 2
• 2007-2008 FAFSA instruction booklet

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Contacts
We appreciate your feedback and comments. We can
be reached at

• Angela Smith
• Phone [phone]
• Email angela.smith_at_ed.gov

• Bob Tschinkel
• Phone [phone]
• Email robert.tschinkel_at_ed.gov

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• Please provide any comments regarding this
  training or the trainers to
• Jo Ann Borel
• Title IV Training Supervisor
• joann.borel_at_ed.gov
• 202-377-3930