Summary of Changes

**2007-2008 Free Application for Federal Student Aid (FAFSA)**

#### 

-   **Colors** - The 2007-2008 FAFSA colors are yellow for student
    information and purple for parent information.

-   **Year References** - All year references have been incremented by
    one year.

-   **Design -** The design and layout of the FAFSA have changed. The
    application pages are numbered one through four. The Notes pages are
    numbered six through ten and the six pages (three pages double-sided
    and attached) are folded to form a booklet. The previous "Tips"
    information is incorporated into the booklet as page 10. The
    unnumbered "page 5" containing basic instructions for filling out
    the form will be the cover page of the FAFSA booklet. The form
    itself is placed inside the booklet, and a return envelope is
    attached to the Notes section and folded inside.

-   **Data Elements deleted -** Four data elements were deleted to allow
    the addition of three new questions required by the Higher Education
    Reconciliation Act of 2005 (HERA). Deleted are two college and
    housing choices (2006-2007 questions 94-97). The 2006-2007 questions
    27 and 28, asking if the student is interested in loans or
    work-study, have been combined into a single question (new
    question 26) that instructs the student to enter a code from the
    Notes to indicate interest in work-study, loans, both or neither.

-   **Data Elements added per the HERA** - A new dependency question 54
    allows a student serving on active duty in the U.S. Armed Forces for
    purposes other than training to be considered independent. Two
    questions (five separate data elements, questions 71-75 for parents
    and questions 92-96 for independent students) ask whether anyone in
    the household received benefits from any of five federal
    means-tested benefit programs in 2006. Dependent students receiving
    such a benefit report it in the parents' section. A student/parent
    who receives such a benefit and has an income at a certain level may
    qualify for a simplified EFC calculation or an automatic zero EFC
    calculation.

#### Application Pages

#### Page 1

## **Question 25** - We moved 2006-2007 question 98 regarding the student's expected enrollment status to become new question 25, for space and formatting reasons and for a more logical flow of questions.

-   **Question 31 -** We revised question 31 asking whether a student
    had a conviction for possessing or selling illegal drugs to reflect
    changes made by the HERA. Convictions are to be counted only for
    offenses that occurred during a period of enrollment for which the
    student was receiving federal student aid (grants, loans and
    work-study).

## **Page 2**

-   **Questions 38-39** -- We revised the question on income earned from
    work to instruct students who file the IRS 1040 form to add "Box 14
    of IRS Schedule K-1 (Form 1065)" to lines 7 + 12 + 18. This allows
    students to report earned income from partnerships or
    self-employment.

-   **Question 45 -** We revised the second sentence to read "For a
    family farm or family business, see Notes page 7," referring
    students to new instructions for reporting the value of a small
    business to reflect changes made by the HERA.

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-   **Question 54** - We added a new question allowing students serving
    on active duty in the U.S. Armed Forces for purposes other than
    training to be considered independent for purposes of applying for
    federal student aid. We placed this question prior to the question
    (#55) asking if the student is a veteran.

#### Page 3

-   **Questions 71-75** - We added new questions asking whether the
    dependent student or the student's parents received benefits from
    five federal means-tested benefit programs at any time during 2006,
    reflecting new provisions in the HERA.

-   **Questions 82-83 -** We revised the question about parents' income
    earned from work to instruct those who file the IRS 1040 form to add
    "Box 14 of IRS Schedule K-1 (Form 1065)" to lines 7 + 12 + 18. This
    allows parents to include earned income from partnerships or
    self-employment.

#### Page 4

-   **Question 89** - We revised the second sentence to read, "For a
    family farm or family business, see Notes page 7," referring to new
    instructions regarding reporting the value of parents' small
    business to reflect changes made by the HERA.

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-   **Questions 92-96** - We added new questions asking independent
    students whether they (or their spouse) received benefits from five
    federal means-tested benefits programs at any time during 2006,
    reflecting new provisions in the HERA.

-   We deleted 2006-2007 questions 94 through 97 to allow space for the
    addition of new questions.

# Notes Pages

# 

# Cover Page (page 5)

-   We moved instructions and abbreviations for states that did not have
    specific deadlines to the top of the page.

-   We deleted the phrase "File Online and File On Time" for space
    considerations, and because this information is already provided in
    the left-hand column.

# Page 6

-   **Notes for question 26 --** We added instructions for students to
    enter a code in question 26 on the form to indicate if they were
    interested in 1) work-study, 2) student loans, 3) both, 4) neither,
    or 5) don't know.

-   **Notes for questions 33c and d and 77c and d --** We expanded the
    instruction to define U.S. territories and freely associated states.

-   **Notes for questions 34 and 78 --** We revised the instructions to
    emphasize the description of who is not eligible to file a 1040EZ.

##### **Page 7**

-   **Notes for questions 43-45 and 87-89** - We added instructions
    specifically for questions 44 and 88 regarding net worth of
    investments, to clarify that the value of education savings accounts
    and prepaid tuition plans should be reported as an asset of the
    parent and not of a dependent student, reflecting changes made in
    the HERA. Also, the instructions state that UGMA, UTMA and JTTEN
    accounts should be reported as student assets.

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-   We added instructions specifically for questions 45 and 89 about
    reporting the net worth of a family's business and/or investment
    farm. The HERA excludes the value of a small business that the
    family owns and controls and that has 100 or fewer full-time or
    full-time equivalent employees.

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-   **Notes for question 54** - We added new instructions for students
    who are currently serving on active duty in the U.S. armed forces to
    indicate that a National Guard or Reserves enlistee is considered on
    active duty if called up for other than state or training purposes.

-   **Notes for questions 56-89** - We revised these Notes (who is
    considered a parent) to emphasize that grandparents, foster parents
    and legal guardians are not considered parents unless they have
    legally adopted the student.

# Page 8

-   **Notes for question 67 and 91** - We split the instructions for
    reporting the number in the family who are attending college into
    two separate instructions, one for the parents' household and one
    for the independent student's household.

-   **Notes for questions 71-75** -- We added new instructions for
    dependent students and their parents regarding how to answer new
    questions (reflecting HERA provisions) on whether they received
    benefits from five federal means-tested benefit programs. The Notes
    instruct students to report benefits for anyone who is included in
    the parents' household in question 66.

-   **Notes for questions 92-96** - We added new instructions for
    independent students and spouse regarding how to answer new
    questions about receipt of benefits from five federal means-tested
    benefit programs, as provided in the HERA. The Notes instruct the
    student to report benefits for anyone included in the student's
    household in question 90.

# Page 10

-   We incorporated the most critical information from the former FAFSA
    insert into a single page "What is the FAFSA?"

-   We added information reminding students how they could have more
    colleges receive their FAFSA information by going online or calling
    the Federal Student Aid Information Center.