# Presentation: 260080

## Session #31

**FAFSA**
**Free Application for Federal Student Aid**
- Angela Smith
- Bob Tschinkel

## What is the FAFSA?

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

## Central Processing System (CPS)

**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

## 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

**Notes:**
On March 1, 2003, services formerly provided by the Immigration and Naturalization Service (INS) transitioned into the Department of Homeland Security (DHS) under the Bureau of Citizenship & Immigration Services (BCIS) U.S. Citizenship & Immigration Services (USCIS). In support of the DHS overall mission, the immediate priorities of the new USCIS are to promote national security, continue to eliminate immigration adjudications backlogs, and implement solutions for improving immigration customer services. The USCIS will continue efforts to fundamentally transform and improve the delivery of immigration and citizenship services. 

## 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

## www.fafsa.ed.gov

## www.pin.ed.gov

**www.pin.ed.gov**

## www.fafsa.ed.gov/FOTWWebApp/faa/faa.jsp 

## FAFSA InstructionsAvailable online at
http://studentaid.ed.gov/students/publications/completing_fafsa/index.html

- http://studentaid.ed.gov/students/publications/completing_fafsa/index.html

**Notes:**
These links work when you are in slideshow mode.

## 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

## Slide 11

## 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

## FAFSA Sections

- General Student Information
- Student/Spouse Income and Assets
- Student Dependency Status
- Parent Information (dependent student only)
- Household Size and Number in College (independent student only)
- School Information
- Signature Requirements

## 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

## 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 what’s already in CPS database
- If SSN entered incorrectly, must file new FAFSA
- If SSN entered correctly, must file “correction application”
- Call 703-284-5666

## Student’s 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

## Questions 29 & 30

- Parent’s education level requested because some states award aid to first generation college students
- Answers not required for EFC processing

## 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

**Notes:**
2006-2007 Processing
Revised Worksheet to all those who answered “2” or “3” previously
Includes blank responses for paper filers
If status changes update through FOTW, SAR correction, FAA Access to CPS
New ISIR to school if student eligible

## 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

## 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 student’s 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

## 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 FTE’s

## 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

## Dependency Questions

- Must be age 24 or older by December 31 of award year
- Enrolled in a master’s, 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

## 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%?

## 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

## 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

## Questions 55-62

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

## 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

## EXERCISEFAFSA QUESTIONS

## Resources 

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

## Contacts

**Bob Tschinkel**
**Phone: (646) 428-3757 **
**Email: robert.tschinkel@ed.gov**

- We appreciate your feedback and comments.
- We can be reached at:

**Angela Smith**
**   ****Phone: (312) 730-1552 **
**   ****Email: angela.smith@ed.gov**

## Please provide any comments regarding this training or the trainers to:

Jo Ann Borel
Title IV Training Supervisor
joann.borel@ed.gov
202-377-3930

- Jo Ann Borel
- Title IV Training Supervisor
- joann.borel@ed.gov
- 202-377-3930