2001-2002

STUDENT FINANCIAL ASSISTANCE

U.S. Department of Education

2001-2002

67939_US_Dept_Educ_High_Rev.p65 1 10/25/2000, 10:49 AM
Important Telephone Numbers for School Counselors

Federal Student Aid Information Center (FSAIC)

Toll-free number for checking status of FAFSA

and corrections, requesting a duplicate SAR, or

asking general questions 1-800-4-FED-AID (1-800-433-3243)

TTY (for the hearing impaired) 1-800-730-8913

Toll number for inquirers calling

from foreign countries 1-319-337-5665

FAFSA on the Web

General information and technical assistance 1-800-801-0576

TTY (for the hearing impaired) 1-800-511-5806

Inspector General Hotline

Reporting student aid fraud, waste, or abuse 1-800-MIS-USED (1-800-647-8733)

Important Web Sites for School Counselors

Bulk Publication Ordering System http://www.edpubs.org/ml

ED’s Information for Students http://www.ed.gov/studentaid

Help in Completing the FAFSA http://www.ed.gov/prog_info/SFA/FAFSA

FAFSA on the Web and Federal School Codes http://www.fafsa.ed.gov

Funding Your Education http://www.ed.gov/prog_info/SFA/FYE

The Student Guide http://www.ed.gov/prog_info/SFA/StudentGui

67939_US_Dept_Educ_High_Rev.p65 2 10/25/2000, 10:53 AM
i

The major federal student financial aid programs ....

Other ED programs..................................................

 Leveraging Educational Assistance

 Partnership (LEAP) Program .................................

 Robert C. Byrd Honors Scholarship Program .......

 Vocational rehabilitation programs ......................

Other federal programs ...........................................

 Federal income tax credits...................................

 National and community service.........................

 Job training .........................................................

 Health professions...............................................

 Veterans benefits ................................................

 Other assistance from the military .......................

Nonfederal sources: state, private, school ...............

GENERAL ELIGIBILITY

REQUIREMENTS ................................................................................

DEMONSTRATING NEED ................................................................................

Cost of attendance...................................................

Need analysis...........................................................

 Calculating the EFC .............................................

 Determining the Federal Pell Grant amount.........

How aid is awarded .................................................

Financial aid package ..............................................

LOAN DEFAULT AND

CHOICE OF SCHOOL ................................................................................

 Are opportunities in the career

 field stable or expanding?....................................

 Is the career compatible with the

 student’s aptitude and interests?...........................

67939_US_Dept_Educ_High_Rev.p65 3 10/25/2000, 10:53 AM
ii

 aid does a school offer? ............................................... 

 What can be learned from a visit to a school? ............. 

SCHOOLS’ RESPONSIBILITIES ........................................................................................ 

OPPORTUNITIES FOR

DISADVANTAGED

STUDENTS ........................................................................................ 

Myths about financial aid ................................................ 

Realities about postsecondary education

and financial aid .............................................................. 

Reaching “at-risk” students.............................................. 

 Establish a timetable of age-sequenced activities ......... 

 Involve parents as well as students .............................. 

 Establish a tutoring and/or mentoring program ............ 

 Provide firsthand information ...................................... 

 Provide academic counseling...................................... 

 Develop cooperative programs

 with local postsecondary schools ................................ 

Early-intervention programs............................................. 

67939_US_Dept_Educ_High_Rev.p65 4 10/25/2000, 10:53 AM
iii

 EDExpress ...........................................................

Paper application method ........................................

Advantages of electronic applications .....................

HOW THE APPLICATION

IS PROCESSED ................................................................................

Data matches...........................................................

 Social Security Administration matches ...............

 Immigration and Naturalization

 Service (INS) match .............................................

 National Student Loan Data System

 (NSLDS) matches ................................................

 Other matches ....................................................

Reviewing the SAR and SAR Information

 Acknowledgement ..................................................

 Student Aid Report (SAR) .....................................

 SAR Information Acknowledgement ....................

Verification ..............................................................

Making changes .......................................................

 Corrections and updating ....................................

 Dependency status and overrides ........................

 Adding a school ..................................................

2001-02 DEADLINES ................................................................................

67939_US_Dept_Educ_High_Rev.p65 5 10/25/2000, 10:53 AM
iv

 Questions 17-35 ......................................................... 

STEP TWO (Questions 36-51) .......................................... 

 Questions 36-51 ......................................................... 

STEP THREE (Questions 52-58) ........................................ 

 Questions 52-58 ......................................................... 

STEP FOUR (Questions 59-83) ........................................ 

 Questions 59-69 ......................................................... 

 Questions 70-83: Income and Asset Information ......... 

 Questions 70-80 ......................................................... 

 Questions 81-83 ......................................................... 

STEP FIVE (Questions 84 and 85) .................................... 

 Questions 84 and 85 ................................................... 

STEP SIX (QUESTIONS 86-97)......................................... 

 Questions 86-97 ......................................................... 

STEP SEVEN (QUESTIONS 98-102) ................................. 

 Questions 98-102 ....................................................... 

WHERE ED SENDS THE

FAFSA INFORMATION ........................................................................................ 

THE FAFSA FORM ........................................................................................ 

Appendix A Sources of Additional Information ................................... 

Appendix B Directory of State Agencies ............................................. 

Appendix C Sample Handouts............................................................. 

Glossary ........................................................................................ 

List of Abbreviations ................................................................. inside back co

67939_US_Dept_Educ_High_Rev.p65 6 10/25/2000, 10:53 AM
1

We also have included supplementary mat

designed to encourage high school studen

consider postsecondary education as an av

a more rewarding career.

We welcome any comments or suggestion

ways to make this handbook more useful i

editions. Please send your comments to

U.S. Department of Education

Student Financial Assistance

Student Aid Awareness

400 Maryland Avenue, SW

Washington, DC 20202

If you prefer, you may e-mail commen

cindy_cameron@ed.gov

We hope you find this publication informa

helpful. To order up to three additional fre

for your staff, call 1-800-4-FED-AID (1-800-4

TTY: 1-800-730-8913). To receive more than 

additional copies, call 1-877-4-ED-PUBS (1-

7827).

67939_US_Dept_Educ_High_Rev.p65 7 10/25/2000, 10:53 AM
3

Many high school students don’t know they may

be eligible for financial aid to attend college.

Unfortunately, many of the neediest students

assume they can’t afford to go to college to

continue their education. But financial aid is

available through private, school, state, and federal

student aid programs.

To help students find out more about the U.S.

Department of Education’s (ED’s) student financial

assistance programs, you can give them copies of

Funding Your Education, a free ED publication

especially for high school students. Each fall ED

sends a letter with instructions on ordering

Funding Your Education and the Free Application

for Federal Student Aid (FAFSA) to every high

school on our mailing list. (ED will automatically

send the quantity requested in the previous year’s

initial order, but you can change the quantity by

following the instructions in the letter.) Individual

copies may also be ordered by mail or by

telephone from ED’s Federal Student Aid

Information Center (FSAIC):

Federal Student Aid Information Center

P.O. Box 84

Washington, DC 20044

Telephone: 1-800-4-FED-AID (1-800-433-3243)

TTY: 1-800-730-8913

EDs Bulk Publication Ordering System (BP

the Internet:

http://www.edpubs.org/ml

BPOS will ask for your “ML number,” which 

find in the upper left corner of the mailing 

items sent to you by our office, Student Fin

Assistance. BPOS allows you to order publ

or check the date and quantity of previous 

Counselors without access to the Internet 

order publications from a customer servic

representative at 1-800-394-7084. Other

publications available through BPOS are th

Student Guide (a comprehensive descript

the federal student aid programs), a brochu

promoting FAFSA on the Web, a brochure 

useful web sites about financial aid, and a b

explaining how convictions for possession 

of drugs can affect eligibility for federal stu

Students can receive a free copy of any of 

publications by calling the FSAIC. Some of 

items are also available on the Internet:

Funding Your Education

http://www.ed.gov/prog_info/SFA/FYE

FAFSA on the Web

http://www.fafsa.ed.gov

Student Guide

http://www.ed.gov/prog_info/SFA/Studen

67939_US_Dept_Educ_High_Rev.p65 9 10/25/2000, 10:53 AM
4

p

postsecondary students. For 1999-2000, these

programs provided approximately $51 billion in aid

to an estimated 8.4 million people.

Other important sources of aid, some of which are

nonfederal, may also be available to your students.

Encourage your students to search on the Internet

and check the reference section of the school

library or public library. Appendix A of this book

has some helpful references. Many scholarship

search services are free or low cost. Students are

strongly encouraged to check out the reputation of

a search service before paying for the service. (See

page 9 for details.)

The major federal student

financial aid programs

■ Federal Pell Grant Program—Federal Pell Grants

are awarded according to rules set by Congress.

If a student is eligible on the basis of these

gp

more campus-based aid is available at that

school for the year. Therefore, the earlier an

eligible student applies, the more likely he o

she is to receive available campus-based aid.

The campus-based programs are

- Federal Supplemental Educational Oppo

nity Grants (FSEOG)

- Federal Work-Study (FWS)

- Federal Perkins Loans

■ William D. Ford Federal Direct Loan Program

The William D. Ford Federal Direct Loan (Dir

Loan) Program enables eligible students and

parents to borrow from ED instead of from a

bank or other lending institution. This allows

borrowers to work with a single entity, ED,

through its servicing centers when repaying

loans or dealing with loan-related issues. The

Direct Loan Program offers a range of flexib

Federal Loans

$33.7 (52.5%)

Institutional and Other Grants

$12.2 (19.0%)

Federal Pell Grants

$7.2 (11.3 %)

State Grant Programs

$3.5 (5.5 %)

Federal Campus-Based

$2.7 (4.2 %)

Non-Federal Loans

$2.4 (3.8 %)

Other Federal Programs

$2.4 (3.7 %)

Total Aid Awarded

$64.1

Source: The College Board. Trends in Student Aid, 1

Estimated Student Aid by Source for Academic Year 1998-99

(Current dollars in billions)

67939_US_Dept_Educ_High_Rev.p65 10 10/25/2000, 10:53 AM
5

- Federal Direct Consolidation Loans (to combine federal education loan debts)

■ Federal Family Education Loan (FFEL) Program—The funds lent under the FFEL Program

are provided by banks and other lenders,

guaranteed by state agencies, and reinsured by

the federal government. The FFEL Program also

offers a variety of loan repayment options.

There are four types of FFELs:

- Federal Stafford Loans (subsidized)

- Federal Stafford Loans (unsubsidized)

- Federal PLUS Loans (for parents)

- Federal Consolidation Loans (to combine

federal education loan debts)

As noted above, the Direct Loan Program and the

FFEL Program have subsidized and unsubsidized

loans.

■ Subsidized loans are awarded to students on

the basis of financial need. The federal government pays the borrower’s accrued interest

during some significant periods, such as when

the student is in school, thereby “subsidizing”

these loans.

■ Unsubsidized loans are not need based; the

borrower is responsible for accrued interest

throughout the life of the loan.

Both subsidized and unsubsidized loans are

available to students. PLUS Loans are available to

parents and are always unsubsidized.

 ✔ Grants (Pell and FSEOG) are gift aid an

have to be repaid.

 ✔ Loans (Perkins, Direct, and FFEL) must 

repaid.

 ✔ Work-study (FWS) provides income (w

does not have to be repaid) from a par

job.

See Funding Your Education and the Stud

Guide for more information on ED’s feder

financial aid programs. Ordering informati

individual copies is on page 3.

Other ED programs

Leveraging Educational Assistance Par

Program 

The Leveraging Educational Assistance Par

(LEAP) Program, formerly known as the St

Student Incentive Grant (SSIG) Program, as

states in providing grants to eligible studen

postsecondary school. Each state has its ow

for this grant program, as well as its own a

amounts and application procedures. State

use a percentage of their LEAP funding to 

work-study assistance through community

job programs. Many of the eligibility criter

established by the state agency administer

program, although LEAP recipients must al

the same basic eligibility criteria that apply 

federal student financial aid recipients. Stu

school inquiries about LEAP and other stat

scholarship, and work-study assistance sho

directed to the appropriate state agencies. 

agencies are listed in Appendix B of this bo

67939_US_Dept_Educ_High_Rev.p65 11 10/25/2000, 10:53 AM
6

Under the Robert C. Byrd Honors Scholarship

Program (Byrd Program), which recognizes and

promotes student excellence and achievement, ED

makes grants to the states to provide scholarships

to exceptionally able postsecondary students.

Applicants must follow the application procedures

established by the sponsoring state education

agency. The state education agency establishes

procedures for selecting the scholars after

consulting with school administrators, school

boards, teachers, counselors, and parents.

Scholarship recipients may be awarded an amount

each year (not to exceed the cost of attendance)

for each of their first four years of study at any

institution of higher education. State agencies are

listed in Appendix B.

Note: At the time this book was published, funding for

the Byrd Program for 2001-02 was not secured. Contact

your state agency for further information.

Vocational rehabilitation programs 

ED also provides assistance for disabled persons

through programs administered by state vocational

rehabilitation agencies. Students must meet state

eligibility criteria for these programs, and this aid

must be coordinated with student aid from other

sources to prevent duplicating benefits. A student is

most likely to receive the maximum assistance by

contacting, as early as possible, the state agency

administering the program(s) for his or her home

state and the financial aid office at the school he or

she plans to attend. State vocational rehabilitation

agencies are listed in the state government section

of the telephone book. (See the blue pages.) Many

are listed as the Division of Vocational

Rehabilitation.

■ The Hope Credit, a tax credit worth up to

$1,500 per student per year, is available to

qualified first-year and second-year students

enrolled at least half time.

■ The Lifetime Learning Credit is a tax credit u

to $1,000 (equal to 20 percent of a family’s

total annual tuition and related expenses up 

$5,000) for virtually any postsecondary educ

tion and training, including undergraduate

years, graduate and professional schools, and

even less-than-half-time study.

The Hope and Lifetime Learning Credits may no

be claimed at the same time for the same studen

For further information on these income tax

credits, access “Tax Info for You” on the Internal

Revenue Service’s web site at

http://www.irs.ustreas.gov

National and community service 

AmeriCorps, a program of national and commun

service, provides full-time education awards of u

to $4,725 a year. Individuals may work before,

during, or after their postsecondary education a

can use the funds either to pay current or future

education expenses or to repay federal student

loans. In many cases, participants must be at leas

18, be high school graduates, have General

Education Development (GED) certificates, or b

working toward their GEDs. For more informatio

students may call 1-800-942-2677 or write to

The Corporation for National Service

1201 New York Avenue, NW

Washington, DC 20525

67939_US_Dept_Educ_High_Rev.p65 12 10/25/2000, 10:53 AM
7

() y 

Training and Partnership Act – through the states.

Funds vary from state to state. In most cases, the

states provide funding for job training and

sometimes also provide a transportation allowance

for students. For information on WIA, students can

contact their state employment agency. For a list of

state WIA contacts or for general information, they

may also access

http://usworkforce.org

Health professions

The U.S. Department of Health and Human Services

(HHS) administers several programs for

undergraduate students. Students interested in

these programs should contact the financial aid

office of the school they plan to attend. HHS also

administers a number of programs for graduate

students in medicine. For more information on

financial aid programs administered by HHS,

students may call 1-301-443-4776 or access

http://www.hrsa.dhhs.gov/bhpr/dsa/dsa.htm

Veterans benefits

The Montgomery GI Bill–Active Duty Educational

Assistance Program offers education benefits for

students who entered active duty for the first time

after June 30, 1985 and served continuously on

active duty for three years. (Students with only two

years of active duty also may be eligible under

certain conditions.) Students also must have their

military pay reduced by $100 a month for the first

twelve months of active duty and must obtain a

high school diploma or equivalency certificate

pp

Department of Veterans Affairs (VA) or at

http://www.gibill.va.gov/educati

c30pam.htm

The Montgomery GI Bill–Selected Reserve 

program of education benefits for reservis

armed forces as well as the Army National 

and the Air National Guard. To be eligible f

program, a reservist must have a six-year o

to serve in the Selected Reserve, complete 

Active Duty for Training (IADT), receive a h

school diploma or its equivalent before co

IADT, and remain in good standing in a dri

of the Selected Reserve.

Students may qualify for benefits from the

Survivors’ and Dependents’ Educational As

Program if they are spouses or children of

■ veterans who died or are permanently 

totally disabled as the result of a servic

connected disability arising from activ

in the armed forces;

■ veterans who died from any cause whi

permanently and totally disabled from 

service-connected disability;

■ service persons missing in action or ca

in the line of duty by a hostile force; or

■ service persons forcibly detained or in

the line of duty by a foreign governme

power.

Benefits may be awarded to pursue associa

bachelor’s, or graduate degrees in VA-appro

programs. Courses leading to a certificate 

67939_US_Dept_Educ_High_Rev.p65 13 10/25/2000, 10:53 AM
http://www.gibill.va.gov/education

Other assistance from the military

Reserve officer training military scholarships are

available through the Army, Air Force, and Navy.

Military scholarship recipients will have a service

obligation in either the reserves or active duty after

graduating from college. Appendix C provides

information for high school students about the

Army Reserve Officer Training Corps (ROTC), Air

Force Reserve Officer Training Corps (AFROTC),

and the Naval Reserve Officers Training Corps

(NROTC). Feel free to photocopy and distribute

this information.

Active duty military service also offers numerous

programs to help students earn or pay for a college

degree, either while on active duty or after they

have completed their enlistment. For further

information about these programs, students should

contact a local U.S. Armed Forces recruiter.

Students who borrow federal student loans may be

interested in repayment assistance from the U.S.

Army’s Loan Repayment Program. For a four-year

enlistment in a selected skill in the Active Army, up

to $65,000 in repayment assistance may be

available. For an enlistment in the Army reserve, up

to $20,000 may be available. For more information,

students should contact a recruiting officer.

Another option available to students is admission

to one of the service academies: the U.S. Military

Academy, the U.S. Naval Academy, the U.S. Air Force

Academy, and the U.S. Coast Guard Academy. To

apply to a service academy, a student must meet

the academic, physical, and medical requirements

U.S. Naval Academy

http://www.nadn.navy.mil

U.S. Air Force Academy

http://www.usafa.af.mil

U.S. Coast Guard Academy

http://www.cga.edu

Nonfederal sources: state,

private, school

Many states offer prepaid tuition programs. The

typical program allows families to set aside a

predetermined amount each month; the savings

cover full tuition at a public state school or a

specified amount toward tuition at a private or o

of-state school. Students can contact their state

education agency for more information; telepho

numbers are listed in Funding Your Education 

in the Student Guide. Some agencies have web

sites describing their prepaid tuition plans and

other state aid. You can link to state agencies’ sit

by clicking on “Apply” at

http://easi.ed.gov/studentcenter

A student might also qualify for a private grant o

scholarship for academic achievement, religious

affiliation, ethnic or racial heritage, community

activities, artistic talents, leadership potential,

athletic ability, proposed field of study, or hobbie

and special interests.

The American Legion offers an inexpensive guid

to private sources of aid called Need a Lift? (see

Appendix A for ordering information). Other bo

8

67939_US_Dept_Educ_High_Rev.p65 14 10/25/2000, 10:53 AM
9

http://collegescholarships.com/100college.htm

http://www.fastweb.com

Computerized scholarship search services match a

prospective student with sources of financial aid.

Some postsecondary schools provide these

services free or at low cost. There are also many

privately operated scholarship search services;

these services tend to be relatively expensive, so a

student or parent should consider the extent of the

search being offered before committing to such a

service. More than 75 percent of all aid awarded

comes from federal and state programs that

students can easily find out about through Funding

Your Education, other free publications, and web

sites.

Each year, ED receives numerous complaints from

students and parents who did not receive the

information they expected from a search service.

Although ED does not evaluate private search

services, the “Looking for Student Aid” brochure

provides some helpful guidelines for students

considering using a search service. A sample

handout in Appendix C lists some questionable

tactics students should be aware of.

Students can receive a free copy of “Looking for

Student Aid” from the FSAIC. The text is also

available at

http://www.ed.gov/prog_info/SFA/LSA

A student considering using a search service can

check its reputation by contacting

p

the service”) at

Freedom of Information Act Reque

FOIA Branch, Office of General Coun

Federal Trade Commission

600 Pennsylvania Avenue, NW

Washington, DC 20580

Fax: 1-202-326-2477

E-mail: foia@ftc.gov

(Telephone inquiries are not accepte

Note: There may be a charge for this service (

higher). The student should indicate the maxim

amount he or she is willing to pay. If the charg

to be higher, the FOIA Branch will call the stu

whether he or she would like the information 

be canceled.

■ the U.S. Postal Inspection Service Frau

toll-free number, 1-800-372-8347 (9:00 

7:30 p.m. eastern time). The student sh

listen to the menu and select the appr

option for the state in which the servic

located, not for the state from which th

student is calling.

■ a state attorney general’s office (which 

listed in the State Government section 

phone book).

67939_US_Dept_Educ_High_Rev.p65 15 10/25/2000, 10:53 AM
p

Free Application for Federal Student Aid (FAFSA).

Part 3 of this handbook discusses the correct

completion of the FAFSA.

Additionally, to be eligible for federal student

financial aid program funds, a student must

■ have a high school diploma or its equivalent,

receive a passing score on an independently

administered examination approved by ED, or

have a certificate of completion of a homestudy program recognized by the student’s

home state;

■ enroll as a regular student in an eligible degree

or certificate program;

■ be a U.S. citizen or eligible noncitizen;

■ have a valid Social Security Number (with the

exception of students from the Republic of the

Marshall Islands, Federated States of Micronesia,

or the Republic of Palau);

■ make satisfactory academic progress;

■ sign certifying statements on the FAFSA such as

agreeing to use federal financial aid funds only

for educational expenses; and

■ be enrolled at least half time to be eligible for

Direct Loan or FFEL Program funds.

Note: This is not a comprehensive list of eligibility

requirements.

10

ggg 

http://www.sss.gov

Note: Male students can register with the Selective

Service online at the above web site.

A recent law suspends aid eligibility for students

convicted of the sale or possession of drugs. If a

student has a conviction or convictions for these

offenses, he or she should call the FSAIC to find 

how the law applies to the student.

An affected student can regain eligibility early by

successfully completing an approved drug

rehabilitation program.

67939_US_Dept_Educ_High_Rev.p65 16 10/25/2000, 10:53 AM
11

attendance at the school and the amount the family

is expected to contribute to the student’s

education.

Cost of attendance

The financial aid administrator at a school usually

develops an average cost of attendance for

different categories of students. Some programs of

study might have lab fees or higher charges for

books and supplies than other programs. Students

living off campus might have higher costs for room

and board and transportation expenses than

students living on campus.

For the federal student financial aid programs, the

financial aid administrator must use the definition

of “cost of attendance” given in the law when

determining what expenses to include. The law

specifies that the cost of attendance includes

tuition and fees and an allowance for living

expenses, such as room and board, books and

supplies, miscellaneous personal expenses

(including a reasonable allowance for renting or

purchasing a personal computer), and

transportation costs. The law also provides limited

allowances for loan fees, dependent-care costs, and

expenses for disabled students.

Note: Many high school students (and their parents)

don’t immediately understand that the definition of

“cost of attendance” includes more than just tuition.

Funding Your Education explains the concept in the

section titled “Eligibility Criteria.”

expenses. For the federal student financial 

programs, the law specifies a need analysis 

that produces the Expected Family Contri

(EFC). The EFC is used with the cost of att

to award Federal Pell Grants, campus-based 

subsidized loans.

Calculating the EFC 

For an EFC calculation, a student must com

and file the FAFSA. Unlike college admissio

applications, the FAFSA is sent to an ED pr

center, rather than directly to a college. Th

student’s information is entered into ED’s

computer system, which then calculates th

student’s official EFC. The application proc

financial aid is described in Part 2 of this h

and completing the FAFSA is discussed in 

this handbook.

Note: An EFC Estimator feature is available to 

who apply using FAFSA Express or FAFSA on t

These applications can be found at

http://www.fafsa.ed.gov

67939_US_Dept_Educ_High_Rev.p65 17 10/25/2000, 10:53 AM
g

no family contribution is expected—has the

most need and may be eligible to receive the

largest possible Federal Pell Grant award.

■ The maximum Pell-eligible EFC for 2000-01 was

3100. At the time this book was published, the

maximum for 2001-02 had not been determined. For information, contact the FSAIC.

How aid is awarded

The Federal Pell Grant Program is considered the

first source of aid to a student, so the award

amount is not affected by other aid the student

receives. For 2000-01, the maximum yearly grant

was $3,300. At the time this book was published,

the maximum grant for 2001-02 had not been

determined. For more information, contact the

FSAIC.

Also note that awards do not change above a

certain cost of attendance. For instance, in 2000-01,

if a student had a zero EFC, the student’s award was

$3,300 if the student went to a school that had a

cost of attendance of $3,300 or higher.

A student who is attending two different

postsecondary schools during the same enrollment

period must notify the financial aid administrators

at both schools. The student may not receive Pell

Grants at both schools.

When awarding campus-based aid or subsidized

loans, the financial aid administrator must consider

other aid available to the student in addition to the

EFC.

12

- However, when the student received a

$2,850 2000-01 Federal Pell Grant and a

$1,000 outside scholarship, the student’s

need was reduced by $3,850.

- Therefore, the aid administrator could

award up to $1,650 (the remaining need

the form of campus-based aid and a subs

dized Federal or Direct Stafford Loan

($5,500 - $3,850 = $1,650).

When processing unsubsidized Federal or Direc

Stafford Loans or PLUS Loans, the aid administra

doesn’t use the EFC to determine the student’s o

parent’s eligibility because these loans are not n

based. In fact, a parent may use a PLUS Loan to

meet the EFC.

■ The amount of the loan may not exceed the

difference between the student’s cost of

attendance and all other aid the student is

receiving, including aid from private and oth

nonfederal sources.

■ The school must consider the student’s eligi

ity for other aid before determining a loan

amount.

- For instance, if an independent student i

his or her first year of study in 2000-01 h

a cost of attendance of $7,000 and was

eligible for a maximum Federal Pell Gran

of $3,300 and a maximum subsidized

Stafford Loan of $2,625, the aid administ

tor could approve the student for an

unsubsidized Stafford Loan of up to $1,0

($7,000 - $3,300- $2,625 = $1,075).

67939_US_Dept_Educ_High_Rev.p65 18 10/25/2000, 10:53 AM
13

Financial aid package

Using all available federal and nonfederal aid, the

financial aid administrator puts together a financial

aid package that comes as close as possible to

meeting the student’s demonstrated need; because

funds for all programs are limited, however, the

amount awarded can sometimes be less than the

amount for which the student is eligible. The

financial aid package usually is presented to the

student in an award letter.

Note: The student may accept or decline any of the

financial aid offered. Students often have questions

about the financial aid package; these questions are best

handled at the postsecondary school. ED does not

regulate how postsecondary schools package aid, as long

as it is done consistently.

67939_US_Dept_Educ_High_Rev.p65 19 10/25/2000, 10:53 AM
14

py y

withdrew from their educational programs or were

unable to find good jobs after they graduated. The

choice of an educational program and a school are

critical in helping students prepare for gainful

employment.

Students who are seeking career training should be

advised to consider the following questions before

enrolling at any school.

Are opportunities in the career field stable or

expanding? 

Some careers are relatively stable, such as

computer programming, computer systems

analysis, accounting, or teaching. Others fluctuate

with the economy and changes in technology. For

information on career fields, students might want

to read several publications published by the U.S.

Department of Labor.

■ Occupational Outlook Handbook is an encyclopedia of careers describing in detail approximately 250 occupations. Each description

includes information on the nature of the work,

working conditions, training needed, job

outlook, earnings, related occupations, and

sources of additional information. 2000-01

edition: Soft cover $49; hard cover $51; CDROM $23.

■ Occupational Projections and Training Data

is an annual supplement to the Occupational

Outlook Handbook, providing statistical data

that support the information in the handbook.

It includes rankings of approximately 500

occupations by factors such as training require

gg jgp

supplies); annual subscription $9.50.

If your school library doesn’t already have these

publications, it can order the Occupational

Outlook Handbook or Occupational Projection

and Training Data by calling 1-312-353-1880 or 

writing to

Bureau of Labor Statistics

Publication Sales Center

P.O. Box 2145

Chicago, Illinois 60690

Fax: 1-312-353-1886

Your library can order the Occupational Outloo

Quarterly by calling 1-202-512-1800 or by writin

to

New Orders

Superintendent of Documents

P.O. Box 371954

Pittsburgh, Pennsylvania 15250-7954

Fax: 1-202-512-2250

Checks for any of the above items should be ma

out to Superintendent of Documents. Prepayme

is required.

The publications are also available on or can be

ordered on the Bureau of Labor Statistics web si

at

http://stats.bls.gov/opbhome.htm

A free online search is available at

http://stats.bls.gov/ocohome.htm

67939_US_Dept_Educ_High_Rev.p65 20 10/25/2000, 10:53 AM
15

p

A school can be very good but not meet a

particular student’s specific needs. The type of

career a student wants will directly influence the

type of postsecondary education he or she will

need to pursue (a two-year program, four-year

program, or a career/vocational program). Many

colleges use admissions tests to measure a student’s

aptitude. The most familiar college admissions tests

are the Preliminary SAT/National Merit Scholarship

Qualifying Test (PSAT/NMSQT), the SAT, and the

ACT. Students generally take these tests during their

junior or senior years of high school.

Does a school have a good reputation for

educating and placing its students? 

Students should check with the local Better

Business Bureau, state higher education agency, or

consumer-protection division of their state

attorney general’s office to find out if problems

have been reported at the schools they are

considering. (The Better Business Bureau will have

information primarily on vocational schools.) The

FSAIC has the most recent default rates for schools.

These rates can indicate the success of the schools’

students; a high default rate may be a sign that a

school’s graduates are having difficulty finding

good-paying jobs. In addition, a default rate greater

than 25 percent will eventually jeopardize a

school’s eligibility to award federal loans and

grants.

A student can also ask a school representative for

the names of the school’s accrediting and licensing

organizations, which are able to provide

information about the school. Prospective students

have the right to ask for a copy of the documents

How many of a school’s students grad

and find employment in the career for 

they trained? 

Students should also ask about a school’s

graduation rate. If a high number of studen

out, it could mean they weren’t satisfied w

education they received. It’s also a good id

interested students to talk to recent gradu

about a school’s courses, average class size

instructors, the quality of facilities and equ

and the earning potential for graduates. Als

school provides residence facilities, studen

find out whether it’s possible to inspect th

Students should comparison-shop before s

enrollment contract. If there are several sc

offering a particular educational program i

area, a student should visit at least two of t

schools before making a decision.

If a school advertises or tells prospective s

that it has a successful job-placement prog

must be able to provide statistics, on reque

which support that claim. Even if a school 

make job-placement claims, it doesn’t hurt 

the school about its graduation rate and jo

placement rate. Students should find out if 

program the school offers is necessary to g

type of job they want or if employers in th

provide on-the-job training.

In addition, if a school advertises its job-pla

rates, it must also advise students of any ap

state licensing requirements for the specif

for which students are trained. Students sh

determine whether the course topics for t

programs relate to state requirements or o

professional certification requirements.

67939_US_Dept_Educ_High_Rev.p65 21 10/25/2000, 10:53 AM
receives any student aid from ED (except Federal

Work-Study), some or all of the money may have to

be returned – by the student or the school – to the

aid programs or to the lender for the loans. Even if

students don’t finish their educational programs,

they must repay whatever loans they received,

minus the amount that was returned to the lender.

Students should find out about a school’s academic

policies, such as the requirements for graduation

and maintaining eligibility for financial aid. These

policies are often grouped together as a

“satisfactory academic progress (SAP) policy.”

What types of financial aid does a school offer?

Students should find out what types of financial aid

are available at schools where they are interested in

applying; they should ask for information on all

federal, state, local, private, and school financial aid

programs. A student should also ask which financial

aid programs are available for the educational

programs he or she is interested in. Not all

educational programs at a school may be eligible

for all aid programs.

■ ED uses specific legislative and regulatory

criteria to determine whether a school and all

of its educational programs are eligible for

federal student aid programs.

■ A school’s eligibility to participate in ED’s

student aid programs is not an indication that

ED has endorsed the quality of the education

the school offers. ED does not approve a

school’s curriculum, policies, or administrative

practices, except those relating to federal

student aid programs.

ppp

and deadlines?

■ How and when does the school deliver finan

cial aid to its students?

■ What are the interest rates and other terms o

any student loans?

■ What are the operating hours of the school’s

financial aid office?

It is up to the student to check out a school.

What can be learned from a visit to a schoo

A good test of any school is how a student feels

about it after a visit. Students should consider

making an appointment to visit a school while

classes are in session. This will give students a

chance to attend classes and talk with other

students in the program they are interested in.

An important point to consider: Do the people 

the school seem to want to help students learn a

plan for their futures?

A student should decide whether the school is a

place he or she wants to be at least five days a

week for the next six months to several years.

16

67939_US_Dept_Educ_High_Rev.p65 22 10/25/2000, 10:53 AM
ppp

request to all prospective students.

17

67939_US_Dept_Educ_High_Rev.p65 23 10/25/2000, 10:53 AM
g

education, recent studies show that students and

parents from low-income families are less likely to

be informed about student financial aid than those

from relatively well-off families. Clearly, the

problem of access cannot be solved solely by

making financial aid available to disadvantaged

students. Rather, the solution depends on

establishing goals and making choices long before

the last year of high school.

An important school responsibility is to help

students make the transition from secondary

school to college or work. This handbook offers

suggestions for addressing a critical problem—

misinformation and lack of information about

postsecondary options and financial aid.

Myths about financial aid

1. There isn’t enough financial aid for students like me.

Many students and parents have the impression

that the budget for the federal student aid

programs has been severely reduced. In fact,

funding for these programs has grown steadily.

Federal student aid programs alone provided

roughly $51 billion in grants, loans, and work-study

assistance to 8.4 million people in 1999-2000.

While it’s true that even this much aid cannot meet

the full financial need of all students, students with

the greatest financial need have the best chance of

receiving assistance.

18

g

student maintains satisfactory academic progres

his or her program of study, federal student aid w

help a student with an average academic record

complete his or her education.

3. You have to be a minority to get financi

aid.

Funds from federal student aid programs are

awarded on the basis of financial need. These fun

are NOT awarded on the basis of minority status

The FAFSA—the financial aid application for the

programs—doesn’t even collect this kind of

information about an applicant.

4. Millions of dollars in scholarships go

unclaimed/unawarded each year, so I’ll

get some of that money. I won’t need

government help.

Most of the money referred to in such statistics 

offered by corporations to their employees’

children or by organizations to their members’

children. While it is well worth researching

nonfederal scholarships and grants, the truth is t

the majority of student aid awarded comes from

the federal government. Therefore, filling out a

FAFSA is an important first step for any student.

Students should also remember that some states

and institutions award aid based on the informat

reported on the FAFSA.

A sample handout is available in Appendix C to

give to students.

67939_US_Dept_Educ_High_Rev.p65 24 10/25/2000, 10:53 AM
19

message across by emphasizing the following

points to students:

1. Stay in school.

Studies show that a person with education beyond

high school earns more money in his or her

lifetime than someone with only a high school

diploma. The job market for noncollege graduates

or those with no technical training is much more

limited.

The chart below is used with thanks to the Bureau

of Labor Statistics. A PDF version of this chart is

available at

http://stats.bls.gov/emptab7.htm

y y 

that exist. Federal, state, private, and schoo

should all be explored.

3. Not everyone goes to postsecondar

school the same way.

Sometimes high school students assume th

further schooling means four years of full-t

study at a residential college. Not so. Today 

can choose from a wide range of postseco

options, including six-month programs at c

schools and two-year degree programs at

community and junior colleges within com

distance, as well as the traditional four-yea

programs at colleges and universities. Part-

time, evening, Internet, and day classes—th

choices are many and varied.

Source: Unemployment rate: Bureau of Labor Statistics, unpublished data; earnings, Bureau of the Census, unpublished data.

Unemployment and earnings for year-round, full-time workers age 25 and over, by educational attai

Unemployment rate in 1998 Education attained Median earnings in 

(percent) (dollars)

1.3 Professional degree 72,700

1.4 Doctorate 62,400

1.6 Master’s degree 50,000

1.9 Bachelor’s degree 40,100

2.5 Associate’s degree 31,700

3.2 Some college, no degree 30,400

4.0 High school graduate 26,000

7.1 Less than a high school diploma 19,700

67939_US_Dept_Educ_High_Rev.p65 25 10/25/2000, 10:53 AM
Many high schools, postsecondary schools, private

organizations, and government agencies have

cooperated in developing early-intervention

programs for students who otherwise might not go

to college. The following list of suggestions is

drawn from some of these programs. You can find

out more about these early-intervention programs

from the sources listed beginning on page 21.

Establish a timetable of

age-sequenced activities.

Studies show that the earlier and more often at-risk

students are reached, the better they understand

the choices they can make. Many fifth, sixth,

seventh, eighth, and ninth graders are already

forming career aspirations and need guidance in

making decisions about high school courses. Tenth,

eleventh, and twelfth graders should be

■ looking at the choices for postsecondary

education,

■ discussing their financial situation with parents

and counselors,

■ participating in pre-college summer programs,

if available,

■ taking the SAT or ACT,

■ applying for aid, and

■ selecting a school.

20

student financial aid, but also the high school

courses needed to pursue postsecondary option

Information on financial planning and how to

gather and use information about postsecondary

options is necessary for all parents, but it is mos

important for parents who have no postseconda

experience themselves. To reach working parent

of “at-risk” students, arrange for evening or

weekend information sessions at convenient

locations, such as neighborhood centers and pla

of worship.

Research has shown that fathers, no matter wha

their income or cultural background, can play a

critical role in their children’s education. When

fathers are involved, their children learn more,

perform better in school, and exhibit healthier

behavior. Even when fathers do not share a hom

with their children, their active involvement can

have a lasting and positive impact. A Call to

Commitment: Fathers’ Involvement in Children

Learning describes research findings, discusses

strategies for improving and extending fathers’

involvement in their children’s education, and

provides examples of programs that involve fath

in children’s learning. This free document is

available by calling 1-877-4-ED-PUBS (1-877-433-

7827). Alternative methods of ordering are listed 

Appendix A.

Establish a tutoring and/or mentoring

program.

Setting up a tutoring and/or mentoring program 

your school using local college students can be

very valuable. An ED study identified more than

1,700 tutoring and mentoring programs operatin

in 921 colleges and universities involving

partnerships with elementary and secondary

67939_US_Dept_Educ_High_Rev.p65 26 10/25/2000, 10:53 AM
Provide firsthand information.

There are many approaches to helping students

visualize the idea of postsecondary education.

Visiting an actual campus is probably the most

effective way for students to get a feel for the

college experience. However, there are numerous

other methods of providing informative and

motivational experiences, such as arranging

attendance at college fairs or meetings with college

admissions representatives, organizing parents for

tours of campuses, and inviting recent college

graduates to talk to students. Many schools now

provide Internet and/or video tours that can be

used by students who can’t visit the campus.

Students need to discuss the things that are keys to

success in postsecondary education, such as

planning to meet off-campus expenses and

allowing enough time for studying. Students’ fears

and unrealistic expectations can be overwhelming,

especially for those who are first-generation college

students. So, it’s also good for high school students

to meet with first-generation college students who

are making it or have made it through school.

Provide academic counseling.

The heart of early intervention is academic

preparation and proper course selection. Studies

show that many students who might be admitted

to postsecondary schools are not taking courses at

the high school level that would prepare them to

do so. Students should be counseled, regardless of

their postsecondary plans, to pursue a challenging

program of study in high school. Even those

students who don’t go on to college or career

training immediately after high school might

change their minds later on. It’s also a good idea for

high school counselors to work with middle school

21

http://www.ed.gov/offices/OPE/think

early/students/college_me.htm

Develop cooperative programs with lo

postsecondary schools.

In some areas, secondary schools and neig

colleges encourage students to stay in scho

plan ahead by offering them financial ince

For instance, high school students in one l

are encouraged to sign a contract in which 

promise to take certain preparatory course

school regularly, and make good grades. A s

who fulfills the contract doesn’t have to p

and fees at the local community college.

Early-intervention progra

If your school does not already participate 

of ED’s TRIO programs, you might want to 

whether it would be possible to do so. The 

purpose of the TRIO programs is to prepar

disadvantaged students for successful entry 

retention in, and completion of postsecon

education. Among the TRIO programs are

■ Upward Bound—aims to increase the 

which participants enroll in and gradu

institutions of postsecondary education

Projects provide instruction in math, la

science, composition, literature, and fo

languages. Other services include acad

financial, or personal counseling; ment

programs; and assistance in preparing 

college entrance exams. Upward Boun

67939_US_Dept_Educ_High_Rev.p65 27 10/25/2000, 10:53 AM
pg

postsecondary education institution of their

choice. The program provides academic, career,

and financial counseling to its participants; its

services include tutorial services, assistance in

completing college admissions and financial aid

applications, and workshops for participants’

families. Students must be between the ages of

11 and 27 and have completed the fifth grade.

In any given project, two-thirds of the participants must be students who are low-income

and potential first-generation college students.

■ Student Support Services (SSS)—aims to

increase the college retention and graduation

rates of its participants. SSS provides services

such as instruction in basic study skills; tutorial

services; assistance in securing admission and

financial aid for enrollment in graduate and

professional programs; and special services for

students with limited English proficiency. SSS

participants must be enrolled or accepted for

enrollment in a program of postsecondary

education at a grantee institution. Only potential first-generation college students, lowincome students, and students with disabilities

evidencing academic need are eligible to

participate.

■ Educational Opportunity Centers (EOCs)—

Although EOCs are designed for people at least

19 years old, younger students may use them if

the services of a Talent Search program are not

available in the target area. EOCs aim to increase the number of adult participants who

enroll in postsecondary education institutions.

EOCs provide academic advice, career workshops, information on student financial assistance, and assistance in completing college

admissions and financial aid applications,

g

Higher Education Programs

U.S. Department of Education

7th Floor

1990 K Street, NW

Washington, DC 20006-8510

E-mail: OPE_TRIO@ed.gov

Web site: http://www.ed.gov/offices/OPE/H

The Council for Opportunity in Education spons

another web site for the TRIO programs at

http://www.trioprograms.org

Another early-intervention initiative administere

by ED is called Gaining Early Awareness and

Readiness for Undergraduate Programs (GEAR U

Created in the Higher Education Amendments o

1998, GEAR UP is designed to encourage lowincome students to have high expectations, stay 

school, study hard, and take the right courses to

prepare for college. Usually an entire class of

students—who must not be beyond seventh gra

when they enter the project—will be targeted. T

program awards grants on a competitive basis to

states and to partnerships. The partnerships mus

consist of colleges, low-income schools (usually

middle or junior high schools), and at least two

other partners such as community organizations

businesses, or religious groups.

GEAR UP has two major components: (1) the Ea

Intervention Component, under which a GEAR U

project provides early college preparation and

awareness activities to participating students

through comprehensive mentoring, counseling,

outreach, and other supportive services; and (2) 

Scholarship Component, under which a GEAR U

project establishes or maintains a financial

assistance program that awards scholarships to

22

67939_US_Dept_Educ_High_Rev.p65 28 10/25/2000, 10:53 AM
pggp 

There are a wide range of private programs that

guarantee college tuition. The U.S. General

Accounting Office (GAO) identified four main

types of programs in its 1990 report “Promising

Practice: Private Programs Guaranteeing Student

Aid for Higher Education”:

■ Sponsorship programs, begun either by individuals or organizations, promise tuition for

postsecondary education to students who are

successful during their kindergarten through

high school years. The programs often target

elementary school students and provide extensive support services throughout their school

years.

■ “Last-dollar” programs help high school students apply for student aid and promise to

make up the difference between the aid received and the cost of attendance.

ygpgypy 

reduction in exchange for high grades

they offer few support services to stud

GAO concluded that these programs a

least likely to affect disadvantaged yout

college attendance rates.

If you would like to order the GAO report

receive one free photocopy by calling 1-20

6000 and requesting document number PE

16. The GAO order fax number is 1-202-512

23

67939_US_Dept_Educ_High_Rev.p65 29 10/25/2000, 10:53 AM
25

considered for most of the federal student aid

programs (such as Federal Pell Grants, Federal

Direct Stafford Loans, and Federal Stafford Loans), a

student must complete and submit the Free

Application for Federal Student Aid (FAFSA). This

application (available in English or Spanish)

collects financial and other information used to

calculate the Expected Family Contribution (EFC),

which postsecondary schools use to determine the

student’s eligibility for aid.

FAFSA data are transmitted electronically to ED’s

Central Processing System (CPS) when a student

completes an electronic application. When a

student completes a paper application, FAFSA

processors input the FAFSA data and send that data

to the CPS. The CPS uses this information to

calculate the EFC and produce an output

document reporting that EFC. The student will

receive the output document (either a Student Aid

Report—SAR—or a SAR Information

Acknowledgement) from the CPS within one to

four weeks of submitting the FAFSA, depending on

the type of FAFSA submitted. (See pages 33 and 34

for descriptions of the SAR and SAR Information

Acknowledgement.)

Schools listed in Step 6 of a student’s FAFSA

automatically receive the student’s information

from the CPS. The schools receive the processed

FAFSA in electronic form, in what is known as the

Institutional Student Information Record (ISIR).

Only schools listed (or added later) by the student

receive the student’s ISIR. Any other school must

receive a SAR directly from the student or be given

permission (by the student) to request the

student’s information from the central processor.

the Federal Student Aid Information Cente

at 1-800-4-FED-AID (1-800-433-3243; TTY

730-8913; number for inquirers calling fro

foreign countries: 1-319-337-5665) or sea

the school on the federal school codes list 

http://www.fafsa.ed.gov

ED’s processing cycle for FAFSAs lasts 18 m

For the 2001-02 award year, application pr

begins January 2, 2001, and FAFSAs for tha

will be accepted until July 1, 2002. Some s

have limited institutional-aid funds that are

awarded on a “first-come, first-served” basis 

eligible students. Because of this, it is impo

that students complete and submit the FAF

early as possible after January 2, 2001.

Note: A student may not submit a 2001-02 FA

processing before January 2, 2001 or after Jul

Applications signed or sent outside this span o

be returned to the student unprocessed with a 

explaining why the application was not proce

67939_US_Dept_Educ_High_Rev.p65 31 10/25/2000, 10:53 AM
y 

returns (and their parents’ returns), Form(s) W-2,

current bank statements, records of untaxed

income (such as welfare benefits, Social Security,

TANF, etc.), and records of any stocks, bonds, and

other investments and assets.

A student does not have to pay a fee for submitting

a FAFSA. To be considered for state or institutional

aid, a student might be required to complete

additional questions on a separate nonfederal form,

and a fee might be charged for processing this

additional information. Students should check with

the schools to which they plan to apply and their

state agencies to find out if aid applicants are

required to submit additional data on nonfederal

forms. Because many school and state deadlines are

very early (many between January and April 2001),

students and parents should fill out their tax forms

and then the FAFSA as soon as possible after

January 2. Those who are unable to complete tax

forms early should estimate amounts and fill out

the FAFSA accordingly.

Students must complete the FAFSA accurately. If a

student submits a paper FAFSA, the document must

be legible and mailed to the address specified in

the FAFSA in time for it to be received by the

deadline. The same deadlines apply if the student is

filing the FAFSA electronically. (See page 36 for a

complete list of deadlines.)

Note: Please caution students that there are NO

EXCEPTIONS TO THE DEADLINES.

It is important to note, however, that states and

schools often set earlier deadlines in awarding aid

from some of ED’s programs, including the campusbased programs (Federal Perkins Loans, Federal

Supplemental Educational Opportunity Grants, and

26

because most errors are caused by students making

inaccurate assumptions about what information is be

requested.

We cannot overemphasize how important it is th

students read and follow the directions on the

FAFSA to ensure that their applications are

processed as quickly and accurately as possible.

Oversights and careless errors on the application

such as providing incorrect Social Security

Numbers (SSNs), cause processing delays. Such

delays might cause students who are otherwise

eligible to miss deadlines to qualify for aid.

It is also important for students to save all record

and other materials used in completing the FAFS

(including photocopies of their completed FAFS

because they might need them later if either ED 

their schools select them for a process called

“verification” (see page 34). This means that the

students will have to provide documentation (su

as tax returns) to the school to show that what

they reported on the aid application is correct.

Students may apply for aid electronically throug

FAFSA on the Web or FAFSA Express, or they ma

submit a paper FAFSA. Additionally, some school

will submit application data for the student usin

software called EDExpress. Note that all of the

application methods are free.

A student needs to complete the FAFSA only onc

each year, in whichever form is most convenient

After the first year, a student may complete the

shorter Renewal FAFSA.

Students can check on the processing status of

their FAFSAs or any corrections they’ve made by

calling 1-800-4-FED-AID (1-800-433-3243) and

answering questions asked by an automated

67939_US_Dept_Educ_High_Rev.p65 32 10/25/2000, 10:53 AM
27

pg

An applicant whose SSN, name, and date of birth

are confirmed by the Social Security Administration

at the CPS’s request will receive an identification

number called a PIN from the CPS in a mailing

separate from the SAR. (The PIN was formerly

called the Electronic Access Code.) The PIN can

then be used as an electronic signature if the

student applies again in subsequent years or if the

student makes corrections electronically using

Corrections on the Web (see pages 34-35). Students

can request a PIN at

http://pin.ed.gov

The student should keep his or her PIN in a safe

place; it is used to access personal information and

as an electronic signature.

It is a good idea for the student to create a financial

aid folder in which to keep copies of FAFSAs, SARs,

PINs, award letters from schools, loan promissory

notes, etc.

Electronic application

methods

FAFSA on the Web

FAFSA on the Web – available in both English and

Spanish – allows students to complete their FAFSA

applications faster and more easily than any other

application method. This Internet application

allows students to submit their FAFSA information

directly to ED’s Central Processing System (CPS).

One advantage of FAFSA on the Web is the detailed

qy 

received one due to filing a FAFSA in a pre

year (see information about PINs above) – 

paper signature page the applicant has pri

from the site, signed, and mailed to the CPS

Meanwhile, the student has instant access 

estimation of his or her Expected Family

Contribution (EFC) through FAFSA on the 

is important to note that FAFSA on the 

provides only an estimate; the official 

will be sent to the student in the mail.

However, once the student’s FAFSA has be

processed, the student may view the offici

results at the FAFSA on the Web site. (The 

required for this.) The address for FAFSA o

Web is

http://www.fafsa.ed.gov

Note that to protect the student’s private data

the Web requires the use of certain approved 

The FAFSA on the Web site lists the currently 

browsers. Because many students and schools 

have the appropriate browser, this method mi

easiest way for students to apply electronicall

student or school has a newer version of a bro

that listed on the web site, the student will sti

to use FAFSA on the Web.

The application follows the question orde

paper FAFSA but also contains information

the beginning of each section to assist the 

in completing the form. The application us

logic” so that students are asked only the q

that apply to them and skip those that don

in edits help students detect and correct a

before submitting the data to the CPS. This 

significantly reduces the number of applic

rejected by the CPS. (For comparison,

approximately 6 percent of paper FAFSAs 

rejected, while less than 1 percent of elect

submissions are rejected.)

67939_US_Dept_Educ_High_Rev.p65 33 10/25/2000, 10:53 AM
y 

801-0576 (TTY: 1-800-511-5806).

To complete the process, a student either signs

electronically using his or her PIN or prints, signs,

and mails a signature page. If the student doesn’t

do either, he or she will receive a rejected SAR in

the mail. The student (and parent, if appropriate)

must sign this rejected SAR and return it to the

FAFSA processor.

Note: To verify that their FAFSA on the Web application

was transmitted successfully, students can check at

http://www.fafsa.ed.gov

The CPS processes the data and sends the school(s)

the ISIR; the student is sent a SAR Information

Acknowledgement and – if he or she does not

already have one – a PIN.

Juniors in high school or other students who will

not be attending college in 2001-02 might be

interested in a feature of FAFSA on the Web and

FAFSA Express (see below) called “early analysis,”

through which the student submits an application

to see what the results would have been. This

allows the student and his or her parents to plan

for when the student actually applies for aid.

Furthermore, the student will receive a PIN and

can use it to access Renewal FAFSA on the Web in

subsequent years. Renewal FAFSA on the Web

displays the information given by the applicant the

previous year; the student simply updates

information as necessary. The independent student

will not need to print, sign, and mail a signature

page because his or her PIN acts as an electronic

signature. Once PINs are available for parents, a

dependent student’s parents will be able to request

PINs beforehand so that they too will be able to

28

pp g 

signature process easier.

■ The home page has been redesigned, with a

new organization making the student’s choic

clearer.

■ Technical re-engineering reduces scrolling,

makes navigation easier, and reduces browse

problems.

■ The improved progress bar makes clearer to

applicants which sections they still need to

complete.

■ The improved “save” process allows the app

cant to save the application to the web site,

where it is held for 45 days. The diskette sav

feature, which was confusing to some applicants, has been eliminated.

■ The user may enter his or her e-mail address 

receive an electronic “postcard” confirming

receipt of the application.

We recommend that students apply as early as

possible; as state deadlines approach, the numbe

of students accessing FAFSA on the Web increas

greatly and the site is slower.

FAFSA Express

FAFSA Express software allows students to apply

electronically using an IBM-compatible compute

with a Windows operating system and a modem

Like FAFSA on the Web, the FAFSA Express progr

automatically edits applicant answers, resulting i

better, more accurate information and fewer

67939_US_Dept_Educ_High_Rev.p65 34 10/25/2000, 10:53 AM
29

If the student does not have a PIN to use as an

electronic signature, he or she prints, signs, and

mails a signature page. (If the student does not

print and mail a signature page, he or she will

receive a rejected SAR in the mail. The student –

and parent, if appropriate – must sign this rejected

SAR and return it to the FAFSA processor.)

The CPS processes the data and sends the school(s)

the ISIR; the student is sent a SAR and – if he or she

does not already have one – a PIN.

EDExpress

Students also may file the FAFSA at a postsecondary

school through ED’s EDExpress software. To do so,

a student completes a paper FAFSA and asks the

school to enter the FAFSA information

electronically. After reviewing the entered data, the

school sends the information electronically to ED’s

CPS.

Note: Schools are not required to send student

FAFSAs through EDExpress.

The CPS processes the data and sends the school

the ISIR; the student is sent a SAR Information

Acknowledgement and – if he or she does not

already have one – a PIN.

The applicant can mail the postcard that c

with the FAFSA. The processor will stamp 

the FAFSA is received and mail the postcar

Note: Applicants should send only the FAFSA 

(pages 3-6) and the enclosed postcard to the p

They should not send copies of their tax retur

worksheets on page 8 of the FAFSA, or any ot

documentation.

The CPS will process the data and send th

school(s) the ISIR; the student is sent a SAR 

he or she does not already have one – a PI

67939_US_Dept_Educ_High_Rev.p65 35 10/25/2000, 10:53 AM
■ PreApplication Worksheet helps students

gather financial information

■ detailed online help provides immediate

answers

■ “skip logic” asks students only questions that

apply to them

■ built-in edits detect errors and reduce number

of rejected applications

■ applicants have instant access to EFC estimate

■ information is sent directly to CPS

■ applicants can verify that information was

transmitted successfully

■ students who won’t attend college next year

can use “early analysis”

■ SAR arrives within a week or two, compared to

four weeks with paper FAFSA

30

■ access for request of duplicate copy of SAR

■ parent signature (planned for future)

67939_US_Dept_Educ_High_Rev.p65 36 10/25/2000, 10:53 AM
31

student and his or her parents can be expected to

pay toward the student’s postsecondary education.

As discussed in Part 1, the EFC measures the

family’s financial strength on the basis of the

income and assets of the student and the student’s

parents or, if the student is married, the student’s

spouse. The EFC formula also takes into account

the family’s expenses as they relate to the number

of people in the household and how many of them

will be attending college during the award year.

If the student’s EFC is less than the cost of

attendance, a student is considered to have

financial need. A student with a zero EFC—

meaning the family can contribute no money—may

receive the maximum Federal Pell Grant award,

depending on the student’s cost of attendance and

enrollment status. The higher the EFC—the more

the family can contribute—the less the student’s

need. If the student’s EFC is above a maximum

number determined each award year by Congress,

the student will not receive a Federal Pell Grant.

(Please see “Demonstrating Need” in Part 1 of this

book.)

The CPS uses a series of edits to check the

consistency of FAFSA information. For instance, it

would be inconsistent for the dependent student of

a single parent to report income earned from work

for two parents. If the FAFSA data are inconsistent,

the CPS may be unable to calculate the EFC or may

calculate an EFC based on assumptions. If

assumptions have been used, they are indicated on

the student’s SAR or SAR Information

Acknowledgement; the student must make sure the

assumptions are correct. The SAR and SAR

Information Acknowledgement include

instructions for making corrections.

Data matches

In addition to checking the FAFSA data aga

predetermined edits, the CPS also perform

database matches. If discrepancies arise, th

student’s records are flagged and the stude

not be eligible to receive federal aid unless 

discrepancy is resolved. Resolving such a

discrepancy usually requires the student to 

additional documentation to the school w

or she is applying. The SAR and SAR Inform

Acknowledgement include the appropriat

instructions for the student.

Social Security Administration matche

The CPS matches FAFSA data against Socia

Administration (SSA) records to check the 

of a student’s Social Security Number (SSN

SSN is invalid or is not in the database, the 

will receive a rejected SAR, and a commen

appear instructing him or her to review th

The student will also receive a comment if 

is a valid number but the name and/or dat

reported on the FAFSA don’t match the SS

records. In either case, the student must re

SSN discrepancy before he or she can rece

federal aid. This may be done by correcting 

or providing documentation that the SSN i

For advice about the best course of action 

circumstances, students should contact th

financial aid administrator at the school th

to attend.

67939_US_Dept_Educ_High_Rev.p65 37 10/25/2000, 10:53 AM
g

conflict. The student must then provide the school

with documentation substantiating his or her

citizenship claim.

In 2000-01, the SSA database match was expanded

to check whether the SSA has a date of death listed

for the person with that SSN. The match is intended

to detect when someone might be fraudulently

attempting to receive federal financial aid.

Planned for 2001-02 is a database match with the

SSA’s Prisoner’s File. The SSA will check to see

whether the applicant is incarcerated and, if so,

whether the student is in a local, state, or federal

facility. Aid eligibility varies depending on what

kind of institution the student is in.

Immigration and Naturalization Service (INS)

match

The CPS also matches FAFSA records against

citizenship records maintained by the U.S.

Immigration and Naturalization Service (INS). If the

student reports on the FAFSA that he or she is an

eligible noncitizen (and, therefore, could be eligible

for federal student aid) and reports an Alien

Registration Number, that information will be

checked against the database maintained by the

INS. If the match does not confirm the student is an

eligible noncitizen, he or she will receive a

comment on the SAR or SAR Information

Acknowledgement. A student is not eligible for aid

until his or her status as an eligible noncitizen is

resolved.

32

py, 

or SAR Information Acknowledgement. A stude

is not eligible for aid until the default status is

resolved. The NSLDS match also reveals whether 

student owes a refund of a student aid

overpayment.

Other matches

The CPS also performs matches against

■ registration status information maintained by

the Selective Service and

■ veteran status maintained by the U.S. Depart

ment of Veterans Affairs (for students who sa

they are independent on the basis of their

veteran status).

Additionally, the Secretary of Education is

authorized by the Higher Education Amendmen

of 1998 to confirm certain FAFSA data (e.g.

Adjusted Gross Income) with the Internal Reven

Service (IRS). ED did not implement this match 

2000-01 but is working with the IRS to develop 

study comparing 2000-01 FAFSA income data w

IRS data.

67939_US_Dept_Educ_High_Rev.p65 38 10/25/2000, 10:53 AM
33

FAFSA Express will receive a SAR within 10 to 14

days of mailing the signature page. Those who use

FAFSA on the Web and those who make changes

using Corrections on the Web (see page 34) will

receive a SAR Information Acknowledgement

within 10 to 14 days of mailing the signature page.

(In the case of any of these electronic transactions,

the student receives the response faster if he or she

signs electronically). Students who transmit

electronic applications or corrections through their

schools using EDExpress will receive a SAR

Information Acknowledgement about 10 days

after the school submits the information to the

CPS.

The student does not need to take or send the SAR

or SAR Information Acknowledgement to a school

that already received the student’s EFC and FAFSA

information electronically in the form of an ISIR. If

a student is interested in having a school that he or

she did not list on the FAFSA receive an ISIR, the

student can add that school to the list (see page 35)

or give the school permission to add itself. Note

that the school must receive the student’s

information in one of the above forms in order for

the student to receive federal aid at that school.

Students can request duplicate copies of their SARs

in two ways:

■ A student with a PIN accesses FAFSA on the

Web at

http://www.fafsa.ed.gov

■ Using a touch-tone phone, the student calls the

FSAIC and – after selecting the English- or

Spanish-language option – presses Feature #1.

An automated system will ask the student to

The SAR serves as an eligibility letter to the 

Unless the student’s SAR has been rejected

is printed on the front page at the upper r

eligibility letter also includes instructions s

how to make corrections to the data the s

supplied on the FAFSA.

Following the letter is a section for the fin

administrator’s use and a page of summary 

from the NSLDS. If the student has not had 

previous federal student loans, much of th

will be blank.

Next is a summary detailing the informatio

student supplied on the FAFSA. The “YOU T

column lists the information the student re

on the application. There is space for the 

to correct the information (if necessary) u

column headed “WRITE IN INFORMATION 

NEW OR CORRECTED ITEMS ONLY.” Data

elements questioned by the CPS are highli

bold type. If a student receives a rejected S

section will highlight specific information 

applicant to provide so his or her eligibilit

determined by the CPS. A rejected SAR doe

include an EFC. Rejected SARs are sent wh

applications have inconsistent data or insu

data to calculate an EFC. Students might al

receive rejected SARs if there are other pro

such as a missing signature page for an ele

application.

If the student makes any changes to the da

SAR, he or she must return the form for

reprocessing. At schools that participate in

EDExpress, financial aid administrators can 

the changes electronically.

67939_US_Dept_Educ_High_Rev.p65 39 10/25/2000, 10:53 AM
p

administrator or the FSAIC to access his or her file,

while the PIN gives the student access to his or her

file and acts as an electronic signature.

SAR Information Acknowledgement

Students who apply through FAFSA on the Web,

apply through a school using EDExpress, or make

corrections through Corrections on the Web

receive a noncorrectable SAR Information

Acknowledgement from the CPS. This

acknowledgement allows the student to review the

processed information and results; the document

may not be used to submit changed or corrected

data. If changes or corrections are needed, they

must be made through EDExpress at the school or

through Corrections on the Web, or the student

may request a duplicate paper SAR to make a

correction.

Verification

The effectiveness of the federal student financial

aid programs depends, in large part, on the

accuracy of the data reported by students. It

directly affects the eligibility of millions of

applicants for these programs. Because of this,

schools must verify information provided by

students selected by the CPS, following procedures

established by federal regulations. The CPS prints

an asterisk next to the EFC on the SAR or SAR

Information Acknowledgement to identify

students who have been selected for verification.

(A code is also provided on the ISIR sent to

schools.) If the student is selected for verification,

a school’s financial aid administrator must check

34

Making changes

There are situations in which the student will ha

to change information that was reported on the

application. This consists of correcting errors or

updating certain information.

Corrections and updating

As previously stated, students can make correcti

using the SAR or can have the school transmit

corrections electronically through EDExpress. Ev

if the student did not originally apply through

EDExpress, a school may still be able to make th

corrections electronically if the student takes th

corrected information to the school.

If the student has a PIN, he or she can quickly an

easily correct or update information using

Corrections on the Web, which is available at

http://www.fafsa.ed.gov

Corrections on the Web allows the student to

change all data elements except the SSN and dat

of birth (these are identifying elements that, alon

with the PIN, authenticate the user). The PIN the

student uses to access Corrections on the Web a

as an electronic signature, so there is no need fo

the student to send a signature page to the CPS. 

dependent student changes information about h

or her parent(s), one of those parents must sign 

signature page.

When a student files a FAFSA, it creates a “snapsh

of the financial situation of the student’s family a

of the date the application was completed. Error

67939_US_Dept_Educ_High_Rev.p65 40 10/25/2000, 10:53 AM
35

the school on an ISIR.

The student is not allowed to update income or

asset information to reflect changes to the family’s

financial situation that took place after the FAFSA

was filed. For example, if the student’s family spent

some of their savings after filing the FAFSA, the

student may not update his or her information to

show a change in the family’s assets. However,

there are three items that the student must update:

■ a change in dependency status,

■ a change in the number of family members in

the household (only if the student is selected

for verification), and

■ a change in the number of family members

enrolled in postsecondary schools (only if the

student is selected for verification).

Note: If any of these changes occurs as a result of a

change in the student’s marital status, the student is not

permitted to update accordingly.

The student should speak to the school’s financial

aid office directly if there will be a significant

change in the family’s income for the present year

or other changes that cannot be reported on the

SAR or electronically.

Dependency status and overrides

Most students entering a postsecondary school

straight from high school are considered financially

dependent on their parents. This means their

parents have to provide information on the FAFSA

(see Part 3 of this handbook). In unusual

are planning to attend. Students should no

the school is not required to perform depe

overrides, and if the financial aid administr

determines that an override is not appropr

or her decision cannot be appealed to the 

Department of Education.

Adding a school

If a student wants to have his or her FAFSA

information sent to an additional school af

the FAFSA, the student may use the SAR or

Corrections on the Web to add the new sc

student using Corrections on the Web is al

make corrections only once per day. There

the student wants to change all six schools 

than once, he or she will have to access

Corrections on the Web on at least two dif

days.

If the student calls the FSAIC to add the sc

gives the school permission to add itself, th

student will need to provide his or her DR

the SAR or SAR Information Acknowledge

Note: No more than six schools may receive t

student’s ISIR. When new schools are chosen 

the ISIR, a corresponding number of schools w

longer receive ISIRs with any information the 

updates.

67939_US_Dept_Educ_High_Rev.p65 41 10/25/2000, 10:53 AM
y 

A 2001-02 FAFSA or a Renewal FAFSA must be

submitted to the application processor

■ no earlier than

January 1, 2001 (paper submission)

January 2, 2001 (electronic submission)

■ and received no later than

July 1, 2002

Note: The front page of the FAFSA provides the state

deadlines for state aid. Schools may have their own

deadlines for campus-based and school financial aid.

■ If a student needs to make SAR corrections, the

SAR must be received by the application

processor no later than

August 16, 2002 (paper submission)

August 27, 2002 (8:00 p.m. eastern)

(electronic submission)

■ A student may request a duplicate SAR through

August 16, 2002 (paper submission)

August 27, 2002 (electronic [phone request])

36

pp

being verified may be given up to 90 days af

his or her last day of enrollment in which to

complete verification. (However, the disburs

ment of funds from certain programs may be

restricted to shorter periods, which may end

prior to the overall 90-day allowance referre

to above.) Verification is considered comple

when the school receives a valid output doc

ment (i.e., a SAR, SAR Information

Acknowledgement, or ISIR) based on the

verified information. However, the verificatio

extension cannot continue beyond

September 3, 2002

67939_US_Dept_Educ_High_Rev.p65 42 10/25/2000, 10:53 AM
37

As mentioned in Part 2 of this handbook, if a

student wishes to receive federally funded student

financial aid to attend a postsecondary school, he

or she must complete the Free Application for

Federal Student Aid (FAFSA). Many states and

schools also rely on the FAFSA to distribute their

student aid funds.

A student does not have to pay to have the FAFSA

processed. ED uses the information collected on

the FAFSA to calculate the Expected Family

Contribution (EFC). The EFC is used to determine

what a family can pay toward postsecondary

education and, in turn, a student’s financial aid

eligibility.

Notes within the FAFSA explain specific terms and

definitions and direct how questions are to be

answered. Additional help on completing the FAFSA

can be found at

http://www.ed.gov/prog_info/SFA/FAFSA

A student can complete (and submit) the FAFSA

electronically through FAFSA on the Web or FAFSA

Express. (See Part 2 of this handbook.)

■ For FAFSA on the Web, go to

http://www.fafsa.ed.gov

■ For FAFSA Express go to

http://sfadownload.ed.gov/FAFSA/

fexpress.html

A student also can submit the FAFSA elect

by asking the college to transmit the inform

through software called EDExpress, althou

all schools have this capability.

Alternatively, a student can complete a pap

and mail it to ED’s processor:

Federal Student Aid Programs

P.O. Box 4008

Mt. Vernon, Illinois 62864-8608

Spanish FAFSAs should be sent to

Federal Student Aid Programs

P.O. Box 4016

Mt. Vernon, Illinois 62864-8616

A black-and-white draft copy of the 2001-0

FAFSA appears at the end of this section. T

is for information purposes only and not fo

submission. Comments to improve the FAF

be sent to

U.S. Department of Education

FAFSA Coordinator

Application Processing

ROB-3; Room 4621

Washington, DC 20202-5454

67939_US_Dept_Educ_High_Rev.p65 43 10/25/2000, 10:53 AM
pp

complete; purple sections are for parents to

complete.

The answers on the paper FAFSA are read

electronically. To complete the paper version, a

student should

■ use black ink;

■ fill in each answer oval completely;

■ print clearly in CAPITAL letters and skip a box

between words;

■ report dollar amounts without cents; and

■ report dates as numbers in the boxes provided

(such as 02/14/1999 for February 14, 1999 or

02/1999 for February 1999).

The following description of the FAFSA follows the

paper version of the application. This information

should help counselors answer questions that

students and parents might have about the FAFSA.

38

✑ The toll number for the Federal Student

Aid Information Center (FSAIC) has been

added for the benefit of students who live

outside the U.S.

✑ The notes explaining what to include in

reporting investments have been clarified

✑ There is more space to fill in the

applicant’s first name and address.

✑ There are now three worksheets;

Worksheets A and B collect information

about untaxed income, and Worksheet C

collects information about income exclusions.

✑ The requests for the number of people in

the parents’ household and the number in

college have been clarified.

✑ The notes explaining who is considered a

parent have been clarified.

67939_US_Dept_Educ_High_Rev.p65 44 10/25/2000, 10:53 AM
39

student’s basic eligibility for federal student aid. For

instance, there is a question about citizenship

because a student must be a U.S. citizen (or eligible

noncitizen) to receive federal student aid.

Note: For questions 1-16, if a question does not apply,

the student should leave it blank.

■ Questions 1-3 ask for the student’s name. The

name, along with other identifying information,

is used for several data matches. Because the

U.S. Department of Education (ED) matches the

student’s name and Social Security Number

(SSN) with the Social Security Administration

(SSA), the name here should match the name

on the student’s Social Security card. Otherwise, the student will be told there was an

inconsistency during processing, and other data

match results may be off.

The student should be very careful when

entering his or her SSN; although the SSN can

be corrected after the Student Aid Report

(SAR) is produced, the number originally

entered will always be used as the student’s ID

and is likely to cause confusion and extra work

for the financial aid administrator if it doesn’t

match the student’s SSN. (The best way to

remedy this situation is for the student to file a

new original FAFSA using the correct SSN.)

■ Questions 4-7 ask for the student’s permanent

mailing address. The student generally must

give a permanent home mailing address (not a

school or office address).

Exception: An incarcerated student must

use his or her college’s administrative

address and include with the FAFSA a letter

from the school indicating that he or she is

rity card has been lost, the student mu

tact the local Social Security office. For 

tional information (in English and Span

the SSA at 1-800-772-1213 (TTY: 1-800-

0778).

Exception: A student from the Rep

the Marshall Islands, the Federated 

Micronesia, or the Republic of Pala

required to have an SSN. He or she 

submit the FAFSA to the following 

not to the address printed on the F

envelope:

Federal Student Aid Programs

P.O. Box 4010

Mt. Vernon, Illinois 62864-861

■ Question 13 asks about U.S. citizensh

eligible noncitizenship. This is the first 

on the FAFSA to refer to a reference no

page 2 of the application. An “eligible n

zen” is someone who is

- a U.S. permanent resident with an A

Registration Receipt Card (I-551),

- a conditional permanent resident (

or

- an eligible noncitizen with an Arriv

Departure Record (I-94) from the U

Immigration and Naturalization Ser

showing a designation of refugee, a

granted, indefinite parole, humanit

parole, or Cuban-Haitian entrant.

An eligible noncitizen should provide his or 

Registration Number in question 14.

67939_US_Dept_Educ_High_Rev.p65 45 10/25/2000, 10:53 AM
tion is completed). Because of the way a

student’s income and assets are treated in the

Expected Family Contribution (EFC) calculation, marital status cannot be projected—the

student must report his or her marital status as

of the date the application is completed.

Questions 17-35

Purpose: Questions 17-35 collect certain

eligibility information as well as information on the

student’s college enrollment plans for the 2001-02

award year, intended course of study, and

preference for types of federal student financial aid.

■ Questions 17-21 ask whether the student

plans to attend full time, three-quarter time, half

time, less than half time, or not at all during

upcoming terms. A student who is not sure

should mark “Full time.” A student attending a

traditional semester-based school should fill out

information for Fall 2001 and Spring 2002 (a

winter term is not usually an option at such

schools).

■ Questions 22 and 23 ask for the highest level

of school completed by the student’s father and

mother. Some state agencies use this information to award grants and scholarships. “Father”

and “mother” in these questions mean the

student’s birth parents or adoptive parents, but

not stepparents or foster parents. Note that this

definition of parents is unique to this question.

All other questions use the definition given on

page 7 of the FAFSA.

■ Questions 24-26 ask for the student’s state

and date of legal residence. This information is

used in the Expected Family Contribution

40

gg y

This question helps establish how much mo

the student may borrow under federal loan

limits.

■ Question 32 asks whether the student will

have a first bachelor’s degree before

July 1, 2001, because eligibility for Federal P

Grants and FSEOGs is almost exclusively

restricted to students who have not yet received bachelor’s degrees.

■ Questions 33 and 34 ask the student to

indicate what types of aid, in addition to gran

he or she is interested in receiving. If a stude

isn’t sure about wanting loans or work-study

or she should answer “Yes.” That way the

student will be considered for all types of ai

that are available; at a later date, the student 

decline any awarded aid he or she does not

want.

■ Question 35 asks whether the student has

been convicted of any illegal drug offense. If

the student has been convicted, he or she is 

necessarily ineligible for aid. Students with

convictions will receive worksheets with th

SARs to determine whether the conviction

affects the student’s eligibility for federal

student aid. Students with convictions shoul

still complete and submit the FAFSA because

even if they are ineligible for federal student

aid, they may still be eligible for state or inst

tional aid. Many states and schools use the d

supplied by the FAFSA to determine student

eligibility for aid from those entities.

If a student leaves FAFSA question 35 blank, 

or she may not be able to receive aid.

67939_US_Dept_Educ_High_Rev.p65 46 10/25/2000, 10:53 AM
41

to calculate the student’s (and spouse’s) portion of

the EFC. The questions about income collect

information on base-year income, as well as income

tax paid, tax-filing status, and the number of

exemptions claimed. The base year for applicants

for 2001-02 is the 2000 tax year. Questions give line

references to the 2000 IRS tax forms. The questions

about assets ask for savings and net worth of

investments and businesses.

Note: In this section, students are directed to enter 0 if

the answer to a question is zero or the question does not

apply.

■ Questions 36-38 ask the student if he or she

has completed a 2000 tax return yet, which

income tax return was filed or will be filed, and

whether the student was eligible to file a

1040A or 1040EZ. ED’s Central Processing

System (CPS) uses this information to edit the

student’s data and to identify who is eligible for

the simplified needs test.

■ Questions 39-43 ask the student (and spouse)

for income information reported on his or her

tax returns. Each question gives the line reference to the 2000 IRS tax forms. ED recommends, but does not require, that a student file

the IRS tax forms before completing the FAFSA.

If the student files a foreign tax return, the

student should convert the value of the foreign

income and taxes paid into U.S. dollars, using

the exchange rate in effect at the time he or

she completes the FAFSA. If the student files a

tax return with Puerto Rico, Guam, American

Samoa, the Virgin Islands, the Republic of the

Marshall Islands, the Federated States of

Micronesia, or the Republic of Palau, the stu

ppg

this handbook.) It is important to revie

items on these worksheets carefully, ev

student may have just a few of these it

report. These worksheets are not subm

ED. Instead, the student enters the tota

worksheets in Questions 44-46.

Worksheet A asks for “Social Security b

received that were not taxed.” Tax filer

determine this amount from the IRS fo

by subtracting the taxable portion of S

Security benefits from total Social Secu

benefits.

■ Questions 47-49 ask the student for i

tion about cash, savings, and checking 

as well as net worth of investments, ne

of business, and net worth of investme

The net worth of investments is equal 

investment value minus investment de

the net worth of business is equal to b

value minus business debt. It is import

students to read the notes for the inve

question (47); the notes specify certain 

include and not to include. Students sh

include a farm that the student lives on

An Education IRA in the student’s nam

be included in the student’s assets, eve

parents opened the account and have 

every contribution to it.

The CPS will automatically calculate a 

fied EFC for a student who meets certa

income and tax-filing requirements. Wh

applicant meets the requirements for a 

fied needs test, family assets are not us

EFC calculation. All applicants include 

67939_US_Dept_Educ_High_Rev.p65 47 10/25/2000, 10:53 AM
y

months they will be received. If students

receive veterans education benefits, they must

report the amount of monthly benefits they

expect to receive during the school year (from

July 1, 2001 through June 30, 2002). Benefits

include a range of assistance that the U.S.

Department of Veterans Affairs offers, such as

the Montgomery GI Bill benefits and other

benefits described in Part 1 of this handbook.

42

- as estimated financial assistance (EFA)

when determining the student’s eligibili

for Direct Loan or FFEL Program loans.

(However, note that Montgomery vetera

benefits are excluded from EFA when

determining eligibility for subsidized FFE

and Direct Stafford Loans.)

This means that schools use veterans benefit

when packaging aid.

67939_US_Dept_Educ_High_Rev.p65 48 10/25/2000, 10:53 AM
43

circumstances, this section must be answered. A

school’s financial aid administrator has the

authority to override a student’s dependency status

on the initial application or by correcting the SAR

if he or she decides that a dependent student

should be considered an independent student.

Note: In this section, the student must answer either

“Yes” or “No” to each question.

■ Questions 52-58 ask the student whether he or

she meets any of these criteria:

- Were you born before January 1, 1978?

- Will you be working on a master’s or

doctorate program (such as an MA, MBA,

MD, JD, or PhD) in school year 2001-02?

- As of today, are you married? (The student

should answer “Yes” if he or she is separated but not divorced.)

- Do you have children who receive more

than half their support from you?

- Do you have dependents (other than your

children or spouse) who live with you and

will receive more than half of their support

from you through June 30, 2002?

Note: A student whose unborn child will be

born before the end of the award year and

will be supported by the student can

answer “Yes.” This applies to male students

as well as females.

leased under a condition other than di

able. Someone who was a cadet or mid

in one of the service academies or wh

called to active duty in the National Gu

Reserves for purposes other than train

also a veteran if he or she was released 

condition other than dishonorable. The 

should answer “No” if he or she has no

gaged in active duty in the U.S. Armed 

is an ROTC student, is a cadet or midsh

a service academy, or is a National Gua

Reserves enlistee who has never been 

for duty other than training. The studen

should answer “No” if he or she is curr

serving in the U.S. Armed Forces and w

continue to serve through June 30, 20

If a student answers “Yes” to being a ve

the name is submitted for a database m

with U.S. Department of Veterans Affair

Note: If the student answers “Yes” to any one 

questions, he or she is classified as an indepen

student, even if the student is still living with 

parents. If the student is not living with his or 

parents but cannot answer “Yes” to any of the

questions, the student is dependent and must 

or her parents’ information in Step Four.

A student answering “Yes” to any ques

Step Three skips Step Four and goes to

Step Five.

A student answering “No” to every que

here goes to Step Four.

67939_US_Dept_Educ_High_Rev.p65 49 10/25/2000, 10:53 AM
Before completing these questions, the student

should read the notes on page 7 of the FAFSA;

these notes explain who is considered a parent. The

term “parent” is not restricted to biological parents.

There are some instances in which a person other

than the student’s biological parent is treated as the

student’s parent.

■ If the student’s parents are both living and

married to each other, the student answers the

questions about them.

■ If the student’s parent is widowed or single, the

student answers the questions about that

parent. If the widowed parent has remarried as

of the day the FAFSA is completed, the student

answers the questions about that parent and

the person whom that parent married.

■ If the student’s parents are divorced or separated, the student answers the questions about

the parent he or she lived with more during

the past 12 months. If the student did not live

with one parent more than the other, he or she

answers in terms of the parent who provided

the most financial support during the past 12

months or during the most recent year that the

student actually was supported by a parent. If

this parent has remarried as of the day the

FAFSA is completed, the student answers the

questions on the rest of the form about that

parent and the person whom that parent

married.

Dependent students must answer questions in

Step Four even if they do not currently live

with their parents.

44

gggg

considered to be a student’s parents.

- Foster parents: Foster parents are not

considered to be a student’s parents.

- Grandparents (or aunts or uncles):

Nonparent relatives (or nonrelatives) are

NOT considered to be the student’s parents—even if the student is living with

them—unless they have adopted the

student.

- Common-law marriage: If a student’s

parents are living together and are not

married but meet the criteria in their sta

for a common-law marriage, the parents

should be reported as married. If the stat

does not consider the situation to be a

common-law marriage, then the parent

information should be filled out as if the

are divorced.

Note: If the student’s last surviving parent dies after 

FAFSA has been filed, the student must update quest

57 using the methods described on pages 34-35 of th

handbook for updating information.

■ Question 64 collects information on how m

people are in the parents’ household. The

applicant should include

- the student (even if he or she doesn’t liv

with the parent) and the student’s

parent(s);

- the parents’ other children, if the parents

will provide more than half of their supp

from July 1, 2001 through June 30, 2002 

if the other children would be considere

67939_US_Dept_Educ_High_Rev.p65 50 10/25/2000, 10:53 AM
45

ppy g 

student’s parents, if the parents provide

more than half of their support and will

continue to provide more than half of their

support from July 1, 2001 through

June 30, 2002.

■ Question 65 asks who in the parents’ household will be college students in 2001-02 in a

program that leads to a college degree or

certificate. The FAFSA notes say always to count

the student. However, others in the parents’

household may be included only if they will

attend at least half time in 2001-02. Parents may

not be included in the number in college.

■ Question 66 asks for the parents’ state of legal

residence. Students with parents who do not

live in the U.S. should enter “FC” (foreign

country) for this question.

Questions 70-83: Parents’ Income and Asset

Information

Purpose: Questions 70-83 collect the student’s

parents’ income and asset information to calculate

the parents’ portion of the EFC. The questions ask

about income, taxes paid, tax filing status, and the

number of exemptions claimed. The questions

about assets ask for cash, savings, and checking, as

well as net worth of investments and businesses.

Note: A portion—and only a portion—of the parents’

income and assets is included in the EFC as being

available for the student’s educational costs.

Note: If the answer to a question is zero or th

does not apply, the student should enter 0.

■ Questions 70-72 ask if the student’s p

have completed a 2000 tax return yet, 

income tax return was filed or will be 

whether the parents were eligible to fi

1040A or 1040EZ. The CPS uses this in

tion to edit the application data and to 

who is eligible for the simplified needs 

■ Questions 73-77 ask the student (or h

parents) to enter income information t

or her parents reported on their tax re

Each question gives the line reference 

2000 IRS tax forms. ED recommends, b

not require, that parents file IRS tax fo

before completing the FAFSA. If the pa

a foreign tax return, the student should 

the income and tax amounts into U.S. d

using the exchange rate in effect at the 

the student completes the FAFSA. If th

file a tax return with Puerto Rico, Guam

American Samoa, the Virgin Islands, the 

lic of the Marshall Islands, the Federate

of Micronesia, or the Republic of Palau

student should report his or her paren

information as stated on these returns.

■ Questions 78-80 collect information 

parents’ untaxed income and benefits 

income exclusions. The parents’ inform

goes into the columns on the right sid

Worksheets A, B and C. (Copies of the

worksheets are on page 58 of this han

It is important to review the items on 

worksheets carefully, even if the paren

just a few of these items to report. The

worksheets are not submitted to ED. In

67939_US_Dept_Educ_High_Rev.p65 51 10/25/2000, 10:53 AM
Questions 81-83

Purpose: Questions 81-83 collect information to

determine whether a family’s assets are substantial

enough to support a contribution toward a

student’s postsecondary education costs. Questions

81 and 82 deal with net worth of investments and

businesses.

An Education IRA in the student’s name should be

included in the student’s assets, even if the parents

opened the account and have made every

contribution to it.

Note that the family’s principal place of residence is not

reported as an asset.

46

g 

and schools require this information for their ow

programs.

■ Questions 81 and 82 ask for net worth of

investments, businesses, and investment farm

The FAFSA’s notes define these terms: net

worth of investments is equal to investment

value minus investment debt and net worth 

business is equal to business value minus

business debt. It is important for parents to

read the notes for the investment question,

because the notes specify certain items to

include and not to include. Parents should n

include a farm that they live on.

67939_US_Dept_Educ_High_Rev.p65 52 10/25/2000, 10:53 AM
47

■ Question 84 collects information on how many

people are in the student’s household. The

applicant should include

- the student (and spouse),

- the student’s children, if the student will

provide more than half of their support

from July 1, 2001 through June 30, 2002,

- the student’s unborn child, if that child will

be born during the award year and the

student’s household will provide more than

half of the child’s support, and

- other people currently living with the

student, if the student provides more than

half of their support and will continue to

provide more than half of their support

from July 1, 2001 through June 30, 2002.

■ Question 85 asks how many of the student’s

household will be students in 2001-02 in a

program that leads to a college degree or

certificate. The FAFSA tells the student always

to count himself or herself. The student may

include others in the household only if they

will attend at least half time in 2001-02. The

student’s parents may not be counted.

the student’s information to each school li

each school, the student indicates whethe

she expects to live on campus, off campus

his or her parent(s), because housing costs 

of the cost of attendance to be determined 

school and, therefore, affect the amount of 

aid that students can receive.

If the student wants information sent to m

six schools, the student can use his or her 

change the schools listed. Part 2 of this han

describes how a student can add or chang

on the list.

Note: ED’s central processor will send data to 

than six schools at a time for one student. For 

if a student originally listed six schools on the 

tion and then updated or corrected informatio

SAR or Corrections on the Web and replaced 

schools with new schools, only the second six 

would get the updated or corrected data.

For a college to receive a student’s data, th

must list the college’s federal school code 

the college’s complete name, address, city, 

School codes are not provided in the FAFS

are in a separate publication, the “Federal S

Code List.” ED sends this list to high schoo

colleges, and public libraries each fall arou

same time the FAFSAs are distributed. ED a

makes the federal school codes available th

the Internet at

http://www.fafsa.ed.gov

67939_US_Dept_Educ_High_Rev.p65 53 10/25/2000, 10:53 AM
By signing the FAFSA, the student and/or parent

agree that if asked, they will provide information

that verifies the accuracy of the completed form.

The signature(s) also certify that the applicant

■ will use federal student financial aid only to pay

the cost of attending an institute of higher

education,

■ has no defaulted federal student loans (or has

made satisfactory repayment arrangements),

■ does not owe money back on a federal student

grant (or has made satisfactory repayment

arrangements),

■ will notify the school if the signer defaults on a

federal student loan, and

■ understands that the Secretary of Education has

the authority to verify income reported on the

application with the Internal Revenue Service.

Note: If students and/or parents purposely give false or

misleading information, they may be fined $10,000, sent

to prison, or both.

■ Question 99 is where the student signs the

FAFSA. If parents’ information was provided in

Step Four, one parent who provided information in Step Four must also sign. (A student

using FAFSA on the Web or FAFSA Express must

print, sign, and mail a signature page unless the

student is able to sign electronically using a

PIN; see page 27.)

■ There are some circumstances when a high

school counselor or a postsecondary school’s

financial aid administrator may sign the application in place of parents:

48

signature.

Substituting the signature of a counselor or

financial aid administrator is a way to move 

FAFSA through the processing system. The

counselor or financial aid administrator mus

provide his or her title in parentheses next t

his or her signature and briefly state the reas

why he or she is signing for the parent(s).

By signing in place of a parent, the counselo

financial aid administrator is assuring a mini

mum level of credibility for the data submitt

However, the counselor or financial aid adm

istrator does not assume any responsibility o

liability in this process. If a financial aid offic

finds any inaccuracies in the information

reported, the student must correct the inform

tion through the correction process describ

in Part 2 of this handbook.

If the FAFSA was not filled out by the student, th

student’s spouse, or the student’s parents, certai

information about the preparer must be provide

High school counselors, financial aid

administrators, and others who help students w

their FAFSAs by actually completing line items o

dictating responses are considered preparers.

Preparers must complete the appropriate sectio

of this step even if they are not paid for their

services.

■ Questions 100-102 require the preparer to

provide his or her name, the name of the firm

address, and either his or her SSN or Employ

Identification Number. The preparer also mu

sign and date the FAFSA.

Note: The “school use only” box at the end of the FA

is for postsecondary school use, not for high school u

67939_US_Dept_Educ_High_Rev.p65 54 10/25/2000, 10:53 AM
49

■ each school the student lists in Step Six,

■ the state agency (or agencies) in the student’s

state of legal residence, and

■ the state agencies of the states in which the

schools listed in Step Six are located.

This maximizes the student’s chances for receiving

state-based and school-based financial aid.

67939_US_Dept_Educ_High_Rev.p65 55 10/25/2000, 10:53 AM
DRAFT

ppp

Continuing applicants – Jul

(date received)

 ^ IN For priority consideration – 

(date postmarked)

 * KS For priority consideration – 

(date received)

KY For priority consideration – 

(date received)

 ^ LA For priority consideration – 

Final deadline – July 1, 200

(date received)

 ^ MA For priority consideration – 

(date received)

MD March 1, 2001 (date postm

ME May 1, 2001 (date received

MI High school seniors – Febru

College students – March 2

(date received)

MN June 30, 2002 (date receive

MO April 1, 2001 (date received

MT For priority consideration – 

(date postmarked)

NC March 15, 2001 (date recei

ND April 15, 2001 (date proces

NH May 1, 2001 (date received

 ^ NJ June 1, 2001 if you received 

Tuition Aid Grant in 20

All other applicants

– October 1, 2001, for fall 

– March 1, 2002, for sprin

(date received)

*^ NY May 1, 2002 (date postmar

OH October 1, 2001 (date recei

OK For priority consideration – 

Final deadline – June 30, 20

(date received)

OR May 1, 2002 (date received

 * PA All 2000-2001 State Grant r

non-2000-2001 State Gr

degree programs – May 

All other applicants – Augu

(date received)

PR May 2, 2002 (date applicat

RI March 1, 2001 (date receiv

SC June 30, 2001 (date receive

TN May 1, 2001 (date processe

*^ WV March 1, 2001 (date receiv

Check with your financial aid admin

states: AK, AL, *AS, *CT, CO, *FM

*MH, *MP, MS, *NE, *NM, *NV

*TX, UT, *VA, *VI, *VT, WA, W

^ Applicants encouraged to obtain 

* Additional form may be required

your income tax return with the IRS before you submit this form.

If you or your family has unusual circumstances (such as loss of

employment) that might affect your need for student financial aid, submit

this form, and then consult with the financial aid office at the college you

plan to attend.

You may also use this form to apply for aid from other sources, such as

your state or college. The deadlines for states (see table to right) or

colleges may be as early as January 2001 and may differ. You may be

required to complete additional forms. Check with your high school

guidance counselor or a financial aid administrator at your college about

state and college sources of student aid.

Your answers on this form will be read electronically. Therefore:

 Green is for students and purple is for parents.

If you have questions about this application, or for more information on

eligibility requirements and the U.S. Department of Education's student aid

programs, look on the Internet at www.ed.gov/studentaid You can also

call 1-800-4FED-AID (1-800-433-3243/319-337-5665) Monday through

Friday between 8:00am and 8:00pm eastern time. TTY users may call 1-

800-730-8913.

fl use black ink and fill in ovals

completely:

fl print clearly in CAPITAL letters

and skip a box between words:

fl report dollar amounts (such as

$12,356.41) like this:

Yes No 

$

After you complete this application, make a copy of it for your records.

Then send the original of pages 3 through 6 in the attached envelope or

send it to: Federal Student Aid Programs, P.O. Box 4008, Mt. Vernon, IL

62864-8608.

You should submit your application as early as possible, but no earlier

than January 1, 2001. We must receive your application no later than

July 1, 2002. Your school must have your correct, complete information

by your last day of enrollment in the 2001-2002 school year.

You should hear from us within four weeks. If you do not, please call

1-800-433-3243 or check on-line at www.fafsa.ed.gov

15 ELM ST

 1 2 3 5 6

Now go to page 3 and begin filling out this form.

Refer to the notes as needed.

no cents ,

2

3

4

Untitled-2 1 10/25/2000, 11:04 AM
Page 2 DRAFT – 09/12/00

DRAFT

Enter 2 for 2nd bachelor’s degree occupational, technical, or educational

Enter 3 for associate degree (occupational or technical program) program of at least two years

Enter 4 for associate degree (general education or transfer program) Enter 7 for teaching credential program (nondegree 

Enter 5 for certificate or diploma for completing an occupational, Enter 8 for graduate or professional degree

technical, or educational program of less than two years Enter 9 for other/undecided

 Notes for question 30 (page 3) — Enter the correct number in the box in question 30.

Enter 0 for 1st year undergraduate/never attended college Enter 4 for 4th year undergraduate/senior

Enter 1 for 1st year undergraduate/attended college before Enter 5 for 5th year/other undergraduate

Enter 2 for 2nd year undergraduate/sophomore Enter 6 for 1st year graduate/professional

Enter 3 for 3rd year undergraduate/junior Enter 7 for continuing graduate/professional or beyo

 Notes for questions 37 c. and d. (page 4) and 71 c. and d. (page 5)

If you filed or will file a foreign tax return, or a tax return with Puerto Rico, Guam, American Samoa, the Virgin I

Marshall Islands, the Federated States of Micronesia, or Palau, use the information from that return to fill out this for

a foreign return, convert all figures to U.S. dollars, using the exchange rate that is in effect today.

 Notes for questions 38 (page 4) and 72 (page 5)

In general, a person is eligible to file a 1040A or 1040EZ if he or she makes less than $50,000, does not itemize de

not receive income from his or her own business or farm, and does not receive alimony. A person is not eligible if he 

itemizes deductions, receives self-employment income or alimony, or is required to file Schedule D for capital gains.

 Notes for questions 41 (page 4) and 75 (page 5) — only for people who filed a 1040EZ or T

On the 1040EZ, if a person answered “Yes” on line 5, use EZ worksheet line F to determine the number of exempt

equals one exemption). If a person answered “No” on line 5, enter 01 if he or she is single, or 02 if he or she is marri

On the Telefile, use line J to determine the number of exemptions ($2,800 equals one exemption).

 Notes for questions 47–48 (page 4) and 81–82 (page 5)

Net worth means current value minus debt. If net worth is one million or more, enter $999,999. If net worth is ne

Investments include real estate (do not include the home you live in), trust funds, money market funds, mutual fun

of deposit, stocks, stock options, bonds, other securities, education IRAs, installment and land sale contracts (includin

held), commodities, etc. Investment value includes the market value of these investments as of today. Investment deb

those debts that are related to the investments.

Investments do not include the home you live in, cash, savings, checking accounts, the value of life insurance and 

plans (pension funds, annuities, noneducation IRAs, Keogh plans, etc.), or the value of prepaid tuition plans.

Business and/or investment farm value includes the market value of land, buildings, machinery, equipment, inve

Business and/or investment farm debt means only those debts for which the business or investment farm was used as 

 Notes for question 58 (page 4)

Answer “No” (you are not a veteran) if you (1) have never engaged in active duty in the U.S. Armed Forces, (2) a

ROTC student or a cadet or midshipman at a service academy, or (3) are a National Guard or Reserves enlistee activa

training. Also answer “No” if you are currently serving in the U.S. Armed Forces and will continue to serve through 

Answer “Yes” (you are a veteran) if you (1) have engaged in active duty in the U.S. Armed Forces (Army, Navy, A

Marines, or Coast Guard) or as a member of the National Guard or Reserves who was called to active duty for purpos

training, or were a cadet or midshipman at one of the service academies, and (2) were released under a condition oth

dishonorable. Also answer “Yes” if you are not a veteran now but will be one by June 30, 2002.

Untitled-2 2 10/25/2000, 11:04 AM
Page 3 DRAFT – 09/12/00

DRAFT

STATE

26. If the answer to question 25 is “No,” give month and year you became a legal resident.

27. Are you male? (Most male students must register with Selective Service to get federal aid.)

28. If you are male (age 18-25) and not registered, do you want Selective Service to register you?

29. What degree or certificate will you be working

on during 2001-2002? See page 2 and enter

the correct number in the box.

31. Will you have a high school diploma or GED before you enroll?

32. Will you have your first bachelor’s degree before July 1, 2001?

33. In addition to grants, are you interested in student loans (which you must pay back)?

34. In addition to grants, are you interested in “work-study” (which you earn through work)?

35. Drug Question -- To Be Determined.

Yes 

 Yes 

 Yes 

Yes 

Yes 

Yes 

Yes 

I am single, divorced, or widowed. 1

I am married/remarried. 2

I am separated. 3

 ALIEN REGISTRATION NUMBE

 

 

/

A

MONTH 

For Help – (8

24. What is your state of

legal residence?

25. Did you become a legal resident of this state

before January 1, 1996?

/

For each question (17 - 21), please mark whether you will be full time, 3/4 time, half time, less than half time, or not attending. 

17. Summer 2001 Full time/Not sure 1 3/4 time 2 Half time 3 Less than half time 4 Not 

18. Fall 2001 Full time/Not sure 1 3/4 time 2 Half time 3 Less than half time 4 Not 

19. Winter 2001-2002 Full time/Not sure 1 3/4 time 2 Half time 3 Less than half time 4 Not 

20. Spring 2002 Full time/Not sure 1 3/4 time 2 Half time 3 Less than half time 4 Not 

21. Summer 2002 Full time/Not sure 1 3/4 time 2 Half time 3 Less than half time 4 Not 

22. Highest school your father completed Middle school/Jr. High 1 High school 2 College or beyond 3 Other/

23. Highest school your mother completed Middle school/Jr. High 1 High school 2 College or beyond 3 Other/

/ /

14.

30. What will be your grade level when you begin

the 2001-2002 school year? See page 2 and

enter the correct number in the box.

11. LICENSE 12. STATE

NUMBER

MONTH 

were married, separated,

divorced, or widowed

DO 

QU

8. Your Social Security Number 9. Your date of birth 10. Your permanent telephone 

11-12. Your driver's license number and state (if any)

13. Are you a U.S. citizen? a. Yes, I am a U.S. citizen. ....................................................... 1

Pick one. See Page 2. b. No, but I am an eligible noncitizen. Fill in question 14. ..... 2

c. No, I am not a citizen or eligible noncitizen. ........................ 3

15. What is your marital 16. Month and year you

status as of today?

1 9

– – ( ) –

XXX XX XXXX

Untitled-2 3 10/25/2000, 11:04 AM
Page 4 DRAFT – 09/12/00

Worksheet A (44)

Worksheet B (45)

Worksheet C (46)

DRAFT

Step Three: Answer all seven questions in this step.

52. Were you born before January 1, 1978? ...................................................................................................... Yes 1 

53. Will you be working on a master's or doctorate program (such as

an MA, MBA, MD, JD, or Ph.D.) during the school year 2001-2002? .................................................... Yes 1 

54. As of today, are you married? (Answer yes if you are separated, but not divorced.) ................................. Yes 1 

55. Do you have children who receive more than half of their support from you? .......................................... Yes 1 

56. Do you have dependents (other than your children or spouse) who live with you and who

receive more than half of their support from you, now and through June 30, 2002? ................................ Yes 1 

57. Are you an orphan or ward of the court or were you a ward of the court until age 18? ............................ Yes 1 

58. Are you a veteran of the U.S. Armed Forces? See page 2. ....................................................................... Yes 1 

 If you (the student) answer “No” to every question in Step Three, go to Step Four.

 If you answer “Yes” to any question in Step Three, skip Step Four and go to Step Five

(If you are a graduate health profession student, your school may require you to complete Step Four even if you answered "Yes" in Step Th

40. Enter the total amount of your (and spouse’s) income tax for 2000. Income tax amount is on

IRS Form 1040–line 51; 1040A–line 33; 1040EZ–line 10; or Telefile–line K.

41. Enter your (and spouse’s) exemptions for 2000. Exemptions are on IRS Form 1040–line 6d or

on Form 1040A–line 6d. For Form 1040EZ or Telefile, see page 2.

42-43. How much did you (and spouse) earn from working in 2000? Answer this

question whether or not you filed a tax return. This information may be on your

W-2 forms, or on IRS Form 1040–lines 7 + 12 + 18; 1040A–line 7; or

1040EZ–line 1. Telefilers should use their W-2's.

 Student (and Spouse) Worksheets (44-46)

44-46. Go to Page 8 and complete the columns on the left of Worksheets A, B,

and C. Enter the student (and spouse) totals in questions 44, 45, and 46,

respectively. Even though you may have few of the Worksheet items, check

each line carefully.

47. As of today, what is the net worth of your (and spouse’s) current investments? See page 2.

48. As of today, what is the net worth of your (and spouse’s) current businesses and/or

investment farms? See page 2. Do not include a farm that you live on and operate.

49. As of today, what is your (and spouse’s) total current balance of cash, savings, and

checking accounts?

50-51. If you receive veterans education benefits, for how many months from

July 1, 2001 through June 30, 2002 will you receive these benefits, and what amount

will you receive per month? Do not include your spouse's veterans education benefits.

You (42)

Your Spouse (43)

Months (50)

Amount (51)

 $

 

$

$

 $

 $

 $

$

$

$

 

For Help – www.ed.gov/prog_inf

Untitled-2 4 10/25/2000, 11:04 AM
Page 5 DRAFT – 09/12/00

DRAFT

/

For questions 73 - 83, if the answer is zero or the question does not apply, enter 0.

73. What was your parents' adjusted gross income for 2000? Adjusted gross income is

on IRS Form 1040–line 33; 1040A–line 19; 1040EZ–line 4; or Telefile–line I.

74. Enter the total amount of your parents' income tax for 2000. Income tax amount is on

IRS Form 1040–line 51; 1040A–line 33; 1040EZ–line 10; or Telefile–line K.

75. Enter your parents' exemptions for 2000. Exemptions are on IRS Form 1040–line 6d or

on Form 1040A–line 6d. For Form 1040EZ or Telefile, see page 2.

76-77. How much did your parents earn from working in 2000? Answer this

question whether or not your parents filed a tax return. This information

may be on their W-2 forms, or on IRS Form 1040–lines 7 + 12 + 18;

1040A–line 7; or 1040EZ–line 1. Telefilers should use their W-2's.

Parent Worksheets (78-80)

78-80. Go to Page 8 and complete the columns on the right of Worksheets A, B,

and C. Enter the parent totals in questions 78, 79, and 80, respectively.

Even though your parents may have few of the Worksheet items, check each

line carefully.

81. As of today, what is the net worth of your parents’ current investments? See page 2.

82. As of today, what is the net worth of your parents’ current businesses and/or

investment farms? See page 2. Do not include a farm that your parents live on and operate.

83. As of today, what is your parents’ total current balance of cash, savings, and checking accounts?

$

$

$

$

$

$

$

$

$

$

 Father/

Stepfather (76)

 Mother/

Stepmother (77)

70. For 2000, have your parents completed their IRS income tax return or another tax return listed in question 71?

a. My parents have already 1 b. My parents will file, but they have 2 c. My parents are not go

completed their return. not yet completed their return. file. (Skip to questio

71. What income tax return did your parents file or will they file for 2000?

a. IRS 1040 ............................................ 1 d. A tax return for Puerto Rico, Guam, American Samoa, the Virgin Islands, the

b. IRS 1040A, 1040EZ, 1040Telefile ..... 2 Marshall Islands, the Federated States of Micronesia, or Palau. See Page 2

c. A foreign tax return. See Page 2. ...... 3

72. If your parents have filed or will file a 1040, were they eligible to file a 1040A or 1040EZ? See page 2.

 

STA

Yes 

MONTH Y

Worksheet A (78)

Worksheet B (79)

Worksheet C (80)

Now go to Step Six.

 Yes No 

1 

66. What is your parents’ state of legal residence?

67. Did your parents become legal residents of the state in question 66 before January 1, 1996?

68. If the answer to question 67 is “No,” give the month and year legal

residency began for the parent who has lived in the state the longest.

69. What is the age of your older parent?

o/SFA/FAFSA For Help – (8

Untitled-2 5 10/25/2000, 11:04 AM
Page 6 DRAFT – 09/12/00

OR

OR

OR

OR

OR

DRAFT

88.

90.

92.

94.

96.

By signing this application, you agree, if asked, to provide

information that will verify the accuracy of your completed form.

This information may include your U.S. or state income tax

forms. Also, you certify that you (1) will use federal and/or state

student financial aid only to pay the cost of attending an

institution of higher education, (2) are not in default on a federal

student loan or have made satisfactory arrangements to repay it,

(3) do not owe money back on a federal student grant or have

made satisfactory arrangements to repay it, (4) will notify your

school if you default on a federal student loan, and (5)

understand that the Secretary of Education has the authority

to verify information reported on this application with the

Internal Revenue Service. If you purposely give false or

misleading information, you may be fined $10,000, sent to

prison, or both.

Step Seven: Please read, sign, and date.

/ /

98. Date this form was completed.

MONTH DAY

 2001 or 2002 

99. Student signature (S

 1

Parent signature (one parent whose

information is provided in Step Four) (S

 2

For Help – www.ed.gov/prog_info

OR

OR

OR

OR

OR

89. on c

off c

with 

91. on c

off c

with 

93. on c

off c

with 

95. on c

off c

with 

97. on c

off c

with 

COLLEGE

ADDRESS

AND CITY

NAME OF

COLLEGE

ADDRESS

AND CITY

NAME OF

COLLEGE

ADDRESS

AND CITY

NAME OF

COLLEGE

ADDRESS

AND CITY

NAME OF

COLLEGE

ADDRESS

AND CITY

 MDE USE ONLY:

 Special Handle

SCHOOL USE ONLY:

 D/O 1

FAA SIGNATURE

 1

Federal 

–

If this form was filled out by someone

other than you, your spouse, or your

parent(s), that person must complete

this part.

 1

 100. Preparer's Social Security Number (or 101)

 

 101. Employer ID number (or 100)

 

 102. Preparer's signature and date

Preparer's name, firm, and address

– –

–

3RD FEDERAL SCHOOL CODE STATE

4TH FEDERAL SCHOOL CODE STATE

5TH FEDERAL SCHOOL CODE STATE

6TH FEDERAL SCHOOL CODE STATE

FOR INFORMATION ONLY.

DO NOT SUBMIT.

Untitled-2 6 10/25/2000, 11:04 AM
Page 7 DRAFT – 09/12/00

DRAFT

• your parents’ other children if (a) your parents will provide more than half of their support from July 1, 

June 30, 2002 or (b) the children could answer “No” to every question in Step Three, and

• other people if they now live with your parents, your parents provide more than half of their support, and 

will continue to provide more than half of their support from July 1, 2001 through June 30, 2002.

 Notes for questions 65 (page 5) and 85 (page 6)

Always count yourself as a college student. Do not include your parents. Include others only if they will a

half time in 2001-2002 a program that leads to a college degree or certificate.

 Notes for question 84 (page 6)

Include in your (and your spouse's) household:

• yourself (and your spouse, if you have one), and

• your children, if you will provide more than half of their support from July 1, 2001 through June 30, 200

• other people if they now live with you, and you provide more than half of their support, and you will con

provide more than half of their support from July 1, 2001 through June 30, 2002.

Information on the Privacy Act and use of your Social Security Number

We use the information that you provide on this form to determine if you are eligible to receive federal student financial aid and th

you are eligible to receive. Section 483 of the Higher Education Act of 1965, as amended, gives us the authority to ask you and your p

questions, and to collect the social security numbers of you and your parents.

State and institutional student financial aid programs may also use the information that you provide on this form to determine if yo

receive state and institutional aid and the need that you have for such aid. Therefore, we will disclose the information that you provide 

each institution you list in questions 86–97, state agencies in your state of legal residence, and the state agencies of the states in which 

that you list in questions 86–97 are located.

If you are applying solely for federal aid, you must answer all of the following questions that apply to you: 1–9, 13–15, 24, 27–28, 

40, 42–49, 52–66, 69–74, 76-85, and 98–99. If you do not answer these questions, you will not receive federal aid.

Without your consent, we may disclose information that you provide to entities under a published “routine use.” Under such a routine 

disclose information to third parties that we have authorized to assist us in administering the above programs; to other federal agencies und

matching programs, such as those with the Internal Revenue Service, Social Security Administration, Selective Service System, Immigratio

ization Service, and Veterans Administration; to your parents or spouse; and to members of Congress if you ask them to help you with stude

If the federal government, the U.S. Department of Education, or an employee of the U.S. Department of Education is involved in l

may send information to the Department of Justice, or a court or adjudicative body, if the disclosure is related to financial aid and certa

are met. In addition, we may send your information to a foreign, federal, state, or local enforcement agency if the information that you 

indicates a violation or potential violation of law, for which that agency has jurisdiction for investigation or prosecution. Finally, we m

information regarding a claim that is determined to be valid and overdue to a consumer reporting agency. This information includes id

the record; the amount, status, and history of the claim; and the program under which the claim arose.

State Certification

By submitting this application, you are giving your state financial aid agency permission to verify any statement on this form and to o

information for all persons required to report income on this form.

The Paperwork Reduction Act of 1995

The Paperwork Reduction Act of 1995 says that no one is required to respond to a collection of information unless it displays a va

number, which for this form is 1845-0001. The time required to complete this form is estimated to be one hour, including time to revie

search data resources, gather the data needed, and complete and review the information collection. If you have comments about this es

suggestions for improving this form, please write to: U.S. Department of Education, Washington DC 20202-4651.

We may request additional information from you to ensure efficient application processing operations. We will collect this additio

only as needed and on a voluntary basis.

Untitled-2 7 10/25/2000, 11:04 AM
Page 8 DRAFT – 09/12/00

DRAFT Education credits (Hope and Lifetime Learning tax credits) from IRS Form 1040-line 46 or

1040A-line 29

Child support paid because of divorce or separation. Do not include support for

children in your (or your parents’) household, as reported in question 84 (or question

64 for your parents).

Taxable earnings from Federal Work-Study or other need-based work programs

Student grant, scholarship, and fellowship aid, including AmeriCorps awards, that was

reported to the IRS in your (or your parents') adjusted gross income

Enter in question 46. Enter in question 80.

Worksheet C

Calendar Year 2000

Worksheet B

Calendar Year 2000

Payments to tax-deferred pension and savings plans (paid directly or withheld

from earnings), including amounts reported on the W-2 Form in Box 13, codes D, E,

F, G, H, and S.

IRA deductions and payments to self-employed SEP, SIMPLE, and Keogh and other

qualified plans from IRS Form 1040–total of lines 23 + 29 or 1040A–line 16

Child support received for all children. Don't include foster care or adoption payments.

Tax exempt interest income from IRS Form 1040–line 8b or 1040A–line 8b

Foreign income exclusion from IRS Form 2555–line 43 or 2555EZ–line 18

Untaxed portions of pensions from IRS Form 1040–lines (15a minus 15b) + (16a minus

16b) or 1040A–lines (11a minus 11b) + (12a minus 12b) excluding rollovers

Credit for federal tax on special fuels from IRS Form 4136–line 9 – nonfarmers only

Housing, food, and other living allowances paid to members of the military, clergy, and

others (including cash payments and cash value of benefits)

Veterans noneducation benefits such as Disability, Death Pension, or Dependency &

Indemnity Compensation (DIC) and/or VA Educational Work-Study allowances

Any other untaxed income or benefits not reported elsewhere on Worksheets A and B, such

as worker's compensation, untaxed portions of railroad retirement benefits, Black Lung

Benefits, Refugee Assistance, etc.

Don't include student aid, Workforce Investment Act educational benefits, or benefits from

flexible spending arrangements, e.g., cafeteria plans.

Cash received, or any money paid on your behalf, not reported elsewhere on this form

Enter in question 45. Enter in question 79.

For question 46

Student/Spouse

For 

P

$

$

$

$

$

For question 45

Student/Spouse

For 

P

$

$

$

$

$

$

$

$

$

$

$

$

XX

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

Untitled-2 8 10/25/2000, 11:04 AM
important to review your SAR when you receive it to make sure all of

your information is correct and to provide any necessary corrections

or additional information.

We enter your information into a formula from the Higher

Education Act of 1965, as amended, and the result is your Expected

Family Contribution, or EFC. This represents the amount your family is

expected to contribute towards the cost of your education (although this

amount may not exactly match the amount you and your family end up

contributing). If your information is complete, your SAR will contain your EFC.

The schools you list in Step Six receive your EFC along with the rest of your information. They use the EFC to prepar

financial aid package to help you meet your financial need. Financial need is the difference between your EFC and yo

school’s cost of attendance (which can include living expenses), as determined by the school. If you believe that you

have special circumstances that should be taken into account, such as unusual medical or dental expenses or a significa

change in income from one year to the next, contact the financial aid office at the schools to which you are applying.

Any financial aid you are eligible to receive will be paid to you through your school. Typically, your school will first u

the aid to pay tuition, fees, and room and board (if provided by the school). Any remaining aid is paid to you for your

other expenses.

Where can I get more information?

The best place for information about student financial aid is the financial aid office at the school you plan to attend. Th

financial aid administrator can tell you about student aid available from your state, the school itself, and other sources.

The Internet is an incredible resource for financial aid information. Many schools have information about financial aid 

their websites. You can also get free information from the U.S. Department of Education’s website at

www.ed.gov/studentaid, including access to free publications such as Funding

Your Education and The Student Guide, or from www.students.gov

You can call our Federal Student Aid Information Center for information at

1-800-4FED-AID (1-800-433-3243) seven days a week, from 8:00 a.m. throu

midnight Eastern time.

You can also find free information about federal, state, institutional, an

private student aid in your high school counselor’s office or local

library’s reference section (usually listed under “student aid” or

“financial aid”). There may be information available from foundation

religious organizations, community organizations, and civic groups, 

well as organizations related to your field of interest, such as the

American Medical Association or American Bar Association. Check with

you parents’ employers or unions to see if they award scholarships or hav

tuition payment plans.

DRAFT – 09/12/00

 Filling out the FAFSA,

 and applying for student

financial aid is free. You should

 be wary of mailings or websites

 that offer to submit your application

 for you, or to find you money for school

 if you pay them a fee. Some of them are

 legitimate, and some are scams. But

 generally any information or service

 you pay for can be had for free

 from your school or from the

U.S. Department of Education.

67939_fafsa_59-60.p65 2 10/25/2000, 11:07 AM
the instructions.

Apply early

Deadlines for aid from your state, from your school, and from

private sources tend to be much earlier than deadlines for feder

aid. To make sure that any financial aid package your school of

you will contain aid from as many sources as possible, apply as

soon as you can after January 1, 2001.

The U.S. Department of Education will process your 2001-20

FAFSA right up until July 1, 2002. However, to actually receive 

your school must have your correct, complete information befo

your last day of enrollment in the 2001-2002 school year. So it is

important to apply early to make sure you leave enough time fo

your school to receive your information and to make any

necessary corrections.

You don’t need to file your tax return before you

submit your FAFSA

Filling out your tax return first will make completing the

FAFSA easier. However, you do not need to submit your tax

return to the IRS before you submit your FAFSA.

You can file your FAFSA electronically

You can fill out and submit a FAFSA over the Internet. This 

the fastest way to apply for financial aid. Also, your information 

edited before you submit it, so, if you made any errors or left ou

any information, we can call this to your attention before you

submit your information. This reduces the chance that your dat

will be rejected for some reason and makes it less likely that you

will have to correct your information later. To submit your

application using FAFSA on the Web, go to www.fafsa.ed.gov

There may be additional forms

The FAFSA is the one application for federal student aid.

Many schools and states rely solely upon this information.

However, your school or state may require you to fill out

additional forms. These additional forms may have deadlines th

are earlier than the federal student aid deadlines, so be sure to

check with the financial aid office at the school you plan to atte

DRAFT – 09/

67939_fafsa_59-60.p65 1 10/25/2000, 11:08 AM
61

For information on any federal student financial aid

program discussed in this handbook, you or your

students may call the Federal Student Aid

Information Center (FSAIC):

1-800-4-FED-AID (1-800-433-3243)—

a toll-free number

TTY: 1-800-730-8913—a toll-free number

for the hearing impaired

8 a.m. to midnight (eastern time) daily

The FSAIC provides the following services:

■ helping complete the Free Application for

Federal Student Aid (FAFSA),

■ explaining the Student Aid Report (SAR)

produced from the FAFSA and how to make

corrections,

■ checking on the processing status of the

FAFSA,

■ requesting a duplicate SAR,

■ changing the student’s address or the schools

that receive the student’s information,

■ checking on whether a school participates in

federal student aid programs,

■ explaining who is eligible for federal student

aid,

■ explaining how federal student aid is awarded

and paid,

■ explaining the verification process, an

■ mailing requested publications.

The FSAIC is NOT able to:

■ make policy,

■ expedite the federal student aid applic

process,

■ discuss a student’s federal student aid 

an unauthorized person, or

■ influence an individual school’s financ

policies.

A high school student’s best initial sources 

information on federal student aid are Fun

Your Education (see the annotated listing 

follows), the notes in the FAFSA, high scho

counselors, and postsecondary school fina

administrators.

Web sites

If you or your students have access to the 

you can consult the U.S. Department of Ed

(ED’s) web site. This site provides general

information about ED and federal student 

aid, as well as access to some of ED’s publi

■ The main site address for information 

ED’s financial aid programs and public

http://www.ed.gov/studentaid

67939_US_Dept_Educ_High_Rev.p65 67 10/25/2000, 10:57 AM
pg

■ The current version of the Student Guide is

available through the main address and

http://www.ed.gov/prog_info/SFA/StudentGuide

■ The Think College web site—A web site designed to provide publications and information

on postsecondary opportunities for people of

all ages. It contains links to Think College Early

(middle school students), High School and

Beyond (high school students), and Returning

to School (adults). It can be accessed at

http://www.ed.gov/thinkcollege

■ College Opportunities On-Line (COOL), a site

linking to over 9,000 colleges and universities,

allows the student to search for a school by

name, location, program, degree offerings, or a

combination of criteria. It is at

http://www.nces.ed.gov/ipeds/cool

Note: A list of selected web sites dealing with student

financial aid is available as an easy-to-photocopy

handout for students in Appendix C.

62

()

TTY: 1-800-730-8913

Toll number for inquirers calling from foreign

countries: 1-319-337-5665

■ Funding Your Education—A free booklet,

geared toward high school students, giving

federal student financial aid application info

mation and describing ED’s major financial a

programs. Copies are available in English or

Spanish.

■ Looking for Student Aid—A free guide abou

using scholarship search services and lookin

for information about financial aid.

■ The Student Guide—A free guide providing 

comprehensive description of the federal

student aid programs and how to apply for

them.

■ College is Possible—A free brochure (in Eng

or Spanish) containing an extensive list of

sources of information on preparing for colle

choosing the right college, and paying for

college published by the Coalition of Americ

Colleges and Universities. Information also c

be accessed at

http://CollegeIsPossible.org

■ Think College? Me? Now?—A free handbook

for students in middle school and junior high

explains why students should consider colle

how to prepare academically, and how to pa

for college. The text is also available at

http://www.ed.gov/pubs/CollegeMeNow

67939_US_Dept_Educ_High_Rev.p65 68 10/25/2000, 10:57 AM
63

ED’s Partnership for Family Involvement in

Education at

http://pfie.ed.gov

Also available from

ED Pubs

Editorial Publications Center

U.S. Department of Education

P.O. Box 1398

Jessup, MD 20794-1398

Toll free: 1-877-4-ED-PUBS (1-877-433-7827)

TTY: 1-800-437-0833

Fax: 1-301-470-1244

E-mail: edpubs@inet.ed.gov

Web site: http//www.ed.gov/pubs/edpubs.html

Low-cost publications

■ Need a Lift?—This publication contains a

survey of educational opportunities, loans,

scholarships, and careers. The cost, including

shipping, is $3.95. For credit card orders only,

call 1-888-453-4466. If paying by check, make

the check out to National Emblem Sales and

send it to

The American Legion

National Emblem Sales

P.O. Box 1050

Indianapolis, IN 46206

■ Make it Happen!—A step-by-step guide to

college for students in grades 8 through 10. It

can be downloaded for free at

http://www.teri.org (click on “HEIC” and

then on “Download FREE Publications”). Hard

copies are available for $1 per copy (multiple

Boston, MA 02116

1-617-542-3900, ext. 200

■ The National Association for College A

Counseling (NACAC) has a number of 

publications. Some of the publications 

- Guide for Parents/Guía para los P

brochure for parents of middle sch

students that addresses college adm

and financial aid. Available in Englis

Spanish. Single copies are free. Con

NACAC for other pricing.

- Guide to the College Admission Pr

booklet that details every step of th

admission process for high school 

$4 for a single copy for members; $

nonmembers. Contact NACAC for 

pricing.

- Parents and Counselors Together 

designed especially for first-genera

college students and to be used in 

workshops. A free copy can be dow

from NACAC’s web site (see below

copies: $12 members; $15 nonmem

Quantity discounts are available.

To order any of NACAC’s publications, call 

822-6285 (Monday-Friday, 8:30 a.m. to 4:30 

eastern time) or write to

NACAC Publications/Media

P.O. Box 18214

Merrifield, VA 22118-0214

Web site: http://www.nacac.com

67939_US_Dept_Educ_High_Rev.p65 69 10/25/2000, 10:57 AM
Educational Assistance Partnership (LEAP) Program,

formerly the State Student Incentive Grant (SSIG)

Program, and the Robert C. Byrd Honors

Scholarship Program in that state.

There are links to state education agencies’ web

sites from http://easi.ed.gov/studentcenter

(click on “Apply”).

ALABAMA

LEAP Program:

Alabama Commission on Higher Education

Grants and Scholarships Department

P.O. Box 302000

Montgomery, Alabama 36130-2000

TEL: (334) 242-2276

Byrd Program:

State Department of Education

Gordon Persons Office Building

P.O. Box 302101

Montgomery, Alabama 36130-2101

TEL: (334) 242-8059

ALASKA

LEAP Program:

Does not participate

Byrd Program:

Alaska Department of Education and Early

Development

801 West 10th Street, Suite 200

Juneau, Alaska 99801-1894

TEL: (907) 465-8728

65

LEAP Program:

Arizona Commission for Postsecondary Ed

2020 North Central Avenue, Suite 275

Phoenix, Arizona 85004-4503

TEL: (602) 229-2592

Byrd Program:

State Department of Education

1535 West Jefferson

Phoenix, Arizona 85007

TEL: (602) 542-7469

ARKANSAS

LEAP Program:

Arkansas Department of Higher Education

114 East Capitol

Little Rock, Arkansas 72201-3818

TEL: (501) 371-2000

Byrd Program:

Arkansas Department of Education

4 State Capitol Mall

Little Rock, Arkansas 72201-1071

TEL: (501) 682-4396

67939_US_Dept_Educ_High_Rev.p65 71 10/25/2000, 10:57 AM
Byrd Program:

California Student Aid Commission

P.O. Box 419029

Rancho Cordova, California 95741-9029

TEL: (916) 526-7968

COLORADO

LEAP Program:

Colorado Commission on Higher Education

1300 Broadway, 2nd Floor

Denver, Colorado 80203

TEL: (303) 866-2723

Byrd Program:

Colorado Department of Education

Robert Byrd Scholarships, Rm 206

201 East Colfax Avenue

Denver, Colorado 80203-1705

TEL: (303) 866-6678

CONNECTICUT

LEAP and Byrd Programs:

Connecticut Department of Higher Education

61 Woodland Street

Hartford, Connecticut 06105-2326

TEL: (860) 947-1855

66

DISTRICT OF COLUMBIA

LEAP Program:

Department of Human Services

Office of Postsecondary Education

Research and Assistance

2100 Martin Luther King, Jr. Avenue, SE, Suite 40

Washington, DC 20020

TEL: (202) 698-2400

Byrd Program:

District of Columbia Public Schools

Student Affairs Branch

825 N. Capitol Street, NE

Washington, DC 20002

TEL: (202) 442-5110

FLORIDA

LEAP and Byrd Programs:

Florida Department of Education

Bureau of Student Financial Assistance

124 Collins Building

325 West Gaines Street

Tallahassee, Florida 32399-0400

TEL: 1-888-827-2004 (toll free)

67939_US_Dept_Educ_High_Rev.p65 72 10/25/2000, 10:57 AM
67

205 Butler Street

Atlanta, Georgia 30334

TEL: (404) 657-0183

HAWAII

LEAP Program:

Hawaii State Postsecondary Education Commission

2444 Dole Street

Honolulu, Hawaii 96822-2394

TEL: (808) 956-8213

Byrd Program:

Hawaii Department of Education

DLTSS-Student Support Administration Section

Attention: Deanna Helber

641 18th Avenue

Bldg. V, Room 201

Honolulu, Hawaii 96816-4444

TEL: (808) 733-9124

IDAHO

LEAP Program:

Idaho State Board of Education

P.O. Box 83720

Boise, Idaho 83720-0037

TEL: (208) 334-2270

Byrd Program:

Idaho State Department of Education

650 West State Street

Boise, Idaho 83720

TEL: (208) 332-6946

Byrd Program:

Illinois Student Assistance Commission

1755 Lake Cook Rd

Deerfield, Illinois 60015-5209

TEL: 1-800-899-4722 (toll free from Illinois 

surrounding states)

TEL: 1-800-934-3572 (toll free from other 

Note: Applications available in November; ap

deadline is January 15th

INDIANA

LEAP and Byrd Programs:

State Student Assistance Commission of In

150 West Market Street, Suite 500

Indianapolis, Indiana 46204-2811

TEL: (317) 232-2350

TEL: 1-888-528-4719 (toll free from within

Indiana)

IOWA

LEAP and Byrd Programs:

Iowa College Student Aid Commission

200 10th Street, 4th Floor

Des Moines, Iowa 50309-3609

TEL: (515) 242-3344 (local)

TEL: 1-800-383-4222 (toll free)

67939_US_Dept_Educ_High_Rev.p65 73 10/25/2000, 10:57 AM
Byrd Program:

Kansas Department of Education

Kansas State Education Building

120 East Tenth Street

Topeka, Kansas 66612-1103

TEL: (785) 296-4950

KENTUCKY

LEAP Program:

Kentucky Higher Education Assistance Authority

1050 U.S. 127 South

Frankfort, Kentucky 40601-4323

TEL: 1-800-928-8926 (toll free)

Byrd Program:

Kentucky Department of Education

500 Mero Street, 19th Floor

Frankfort, Kentucky 40601

TEL: (502) 564-3421

LOUISIANA

LEAP Program:

Louisiana Office of Student Financial Assistance

P.O. Box 91202

Baton Rouge, Louisiana 70821-9202

TEL: 1-800-259-5626 (toll free)

Byrd Program:

Louisiana Department of Education

P.O. Box 94064

626 North 4th Street, 12th Floor

Baton Rouge, Louisiana 70804-9064

TEL: (225) 342-2098

68

MARYLAND

LEAP Program:

Maryland Higher Education Commission

State Scholarship Administration

16 Francis Street

Annapolis, Maryland 21401-1781

TEL: (410) 260-4565 (local)

TEL: 1-800-974-1024 (toll free)

Note: Inquirers should specify that they want inform

tion about the General State Scholarship, the Tolbert

Grant, and the Educational Assistance Grant.

Byrd Program:

Maryland State Department of Education

200 West Baltimore Street

Baltimore, Maryland 21201-2595

TEL: (410) 767-0484

MASSACHUSETTS

LEAP Program:

Massachusetts Office of Student Financial

Assistance

330 Stuart Street, Suite 304

Boston, Massachusetts 02116

TEL: (617) 727-9420

Byrd Program:

Massachusetts Department of Education

350 Main Street

Malden, Massachusetts 02148-5023

TEL: (781) 338-6325

67939_US_Dept_Educ_High_Rev.p65 74 10/25/2000, 10:57 AM
69

MINNESOTA

LEAP Program:

Minnesota Higher Education Services Office

1450 Energy Park Drive, Suite 350

St. Paul, Minnesota 55108-5227

TEL: 1-800-657-3866 (toll free)

Byrd Program:

Minnesota Department of Children, Families and

Learning

Division of Learner Options

1500 Highway 36 West

Roseville, Minnesota 55113

TEL: (651) 582-8629

MISSISSIPPI

LEAP Program:

Institution of Higher Learning

State Student Financial Aid

3825 Ridgewood Road

Jackson, Mississippi 39211-6453

TEL: (601) 432-6997

Byrd Program:

Mississippi Department of Education

Office of Scholastic Development

P.O. Box 771

Jackson, Mississippi 39205-0771

TEL: (601) 359-4305

Byrd Program:

Missouri Department of Elementary and Se

Education

P.O. Box 480

Jefferson City, Missouri 65102

TEL: (573) 751-1668

MONTANA

LEAP Program:

Montana University System

P.O. Box 203101

Helena, Montana 59620-3101

TEL: (406) 444-6594

Byrd Program:

Montana Office of Public Instruction

Attention: Byrd Program

P.O. Box 202501

Helena, Montana 59620-2501

TEL: (406) 444-5663

NEBRASKA

LEAP Program:

Nebraska Coordinating Commission for

Postsecondary Education

P.O. Box 95005

Lincoln, Nebraska 68509-5005

TEL: (402) 471-2847

Byrd Program:

Nebraska Department of Education

301 Centennial Mall South, P.O. Box 94987

Lincoln, Nebraska 68509-4987

TEL: (402) 971-2295

67939_US_Dept_Educ_High_Rev.p65 75 10/25/2000, 10:57 AM
NEW HAMPSHIRE

LEAP Program:

New Hampshire Postsecondary Education

Commission

2 Industrial Park Drive

Concord, New Hampshire 03301-8512

TEL: (603) 271-2555

Byrd Program:

New Hampshire Department of Education

State Office Park South

101 Pleasant Street

Concord, New Hampshire 03301

TEL: (603) 271-6051

NEW JERSEY

LEAP Program:

State of New Jersey

Office of Student Assistance

P.O. Box 540

Trenton, New Jersey 08625-0540

TEL: 1-800-792-8670 (toll free)

Byrd Program:

New Jersey Department of Education

100 Riverview Plaza, P.O. Box 500

Trenton, New Jersey 08625-0500

TEL: (609) 984-6314

70

Byrd Program:

New Mexico Department of Education

New Mexico Byrd Scholarship Program

300 Don Gaspar

Santa Fe, New Mexico 87501-2786

TEL: (505) 827-6649

NEW YORK

LEAP Program:

New York State Higher Education Services

Corporation

99 Washington Avenue

Albany, New York 12255

TEL: 1-518-474-5642

Note: Inquirers should specify that they want inform

tion about the Tuition Assistance Program (TAP)

Byrd Program:

New York State Education Department

Scholarship Unit

Rm 1078, EDA

Albany, New York 12230

TEL: (518) 486-1319

67939_US_Dept_Educ_High_Rev.p65 76 10/25/2000, 10:57 AM
71

Byrd Program:

North Carolina Department of Public Instruction

301 North Wilmington Street

Attention: Scholarship Office (Linda Johnson)

Raleigh, North Carolina 27601-1712

TEL: (919) 715-1161

NORTH DAKOTA

LEAP Program:

North Dakota University System

North Dakota Student Financial Assistance Program

600 East Boulevard Avenue, Department 215

Bismarck, North Dakota 58505-0230

TEL: (701) 328-4114

Byrd Program:

North Dakota Department of Public Instruction

600 East Boulevard, 9th Floor

Bismarck, North Dakota 58505-0440

TEL: (701) 328-2098

OHIO

LEAP Program:

Ohio Board of Regents

State Grants and Scholarships

P.O. Box 182452

Columbus, Ohio 43218-2452

TEL: 1-888-833-1133 (toll free)

Byrd Program:

Ohio Department of Education

65 South Front Street, Room 1009

Columbus, Ohio 43215

TEL: (614) 466-2761

Byrd Program:

State Department of Education

Robert C. Byrd Honors Scholarship

2500 North Lincoln Boulevard

Oklahoma City, Oklahoma 73105-4599

TEL: (405) 521-2808

OREGON

LEAP and Byrd Programs:

Oregon Student Assistance Commission

1500 Valley River Drive, Suite 100

Attention: Grant Programs

Eugene, Oregon 97401

TEL: (541) 687-7395

PENNSYLVANIA

LEAP Program:

Pennsylvania Higher Education Assistance 

1200 North 7th Street

Harrisburg, Pennsylvania 17102-1444

TEL: (717) 720-2800 (local)

TEL: 1-800-692-7435 (toll free only within 

Byrd Program:

Pennsylvania Department of Education

Division of School Based Improvement

333 Market Street, 8th Floor

Harrisburg, Pennsylvania 17126-0333

TEL: (717) 783-6583

67939_US_Dept_Educ_High_Rev.p65 77 10/25/2000, 10:57 AM
Byrd Program:

Rhode Island Department of Education

255 Westminster Street

Providence, Rhode Island 02903

TEL: (401) 222-4600, ext. 2194

SOUTH CAROLINA

LEAP Program:

South Carolina Higher Education Tuition Grants

Commission

P.O. Box 12159

Columbia, South Carolina 29211

TEL: (803) 734-1200

Byrd Program:

South Carolina Department of Education

1104 Rutledge Building

1429 Senate Street

Columbia, South Carolina 29201

TEL: (803) 734-8357

SOUTH DAKOTA

LEAP Program:

Does not participate

Byrd Program:

Department of Education and Cultural Affairs

Office of the Secretary

700 Governors Drive

Pierre, South Dakota 57501-2291

TEL: (605) 773-5669

72

TEL: 1-800-257-6526 (toll free from outside TN)

TEXAS

LEAP and Byrd Programs:

Texas Higher Education Coordinating Board

P.O. Box 12788

Austin, Texas 78711-2788

TEL: 1-800-242-3062 (toll free)

UTAH

LEAP Program:

Utah State Board of Regents

Utah System of Higher Education

355 West North Temple

Triad #3, Suite 550

Salt Lake City, Utah 84180-1205

TEL: (801) 321-7200

Byrd Program:

Utah State Office of Education

250 East 500 South

Salt Lake City, Utah 84111

TEL: (801) 538-7779

VERMONT

LEAP and Byrd Programs:

Vermont Student Assistance Corporation

P.O. Box 2000

Winooski, Vermont 05404-2601

TEL: 1-802-655-9602 (local)

TEL: 1-800-642-3177 (toll free)

67939_US_Dept_Educ_High_Rev.p65 78 10/25/2000, 10:57 AM
73

Note: For application information, contact the school

the student plans to attend. Ask about the College

Scholarship Assistance Program.

Byrd Program:

Virginia Department of Education

P.O. Box 2120

James Monroe Building

14th & Franklin Streets

Richmond, Virginia 23218-2120

TEL: (804) 225-2877

WASHINGTON

LEAP Program:

Washington State Higher Education Coordinating

Board

917 Lakeridge Way

P.O. Box 43430

Olympia, Washington 98504-3430

TEL: (360) 753-7850

Byrd Program:

Superintendent of Public Instruction

P.O. Box 47200

Olympia, Washington 98504-7200

TEL: (360) 753-2858

WEST VIRGINIA

LEAP and Byrd Programs:

West Virginia Higher Education Policy Commission

1018 Kanawha Boulevard East, Suite 700

Charleston, West Virginia 25301-2827

TEL: 1-888-825-5707 (toll free)

Byrd Program:

State of Wisconsin Department of Public

Instruction

125 South Webster Street

P.O. Box 7841

Madison, Wisconsin 53707-7841

TEL: (608) 266-2364

WYOMING

LEAP Program:

Not participating at the time this book wa

published. For further information, call

(307) 777-7763.

Byrd Program:

Wyoming State Department of Education

2300 Capitol Avenue

Hathaway Building, 2nd Floor

Cheyenne, Wyoming 82002-0050

TEL: (307) 777-6265

AMERICAN SAMOA

LEAP and Byrd Programs:

American Samoa Community College

Board of Higher Education

P.O. Box 2609

Pago Pago, American Samoa 96799-2609

TEL: (684) 699-9155*

* To call from the U.S., dial 011 before the

country code shown in parentheses.

67939_US_Dept_Educ_High_Rev.p65 79 10/25/2000, 10:57 AM
NORTHERN MARIANA

ISLANDS

LEAP Program:

Northern Marianas College

P.O. Box 1250

Saipan, MP 96950

TEL: (670) 234-5498, ext. 1422*

Byrd Program:

Commonwealth of the Northern Mariana Islands

State Board of Education

Public School System

P.O. Box 1370 CK

Saipan, MP 96950

TEL: (670) 322-6405*

PUERTO RICO

LEAP Program:

Puerto Rico Council on Higher Education

Box 19900-Fernandez Juncos Station

San Juan, Puerto Rico 00910-1900

TEL: (787) 724-7100

Byrd Program:

Puerto Rico Department of Education

P.O. Box 759

Hato Rey, Puerto Rico 00919

TEL: (787) 758-2200

74

REPUBLIC OF THE

MARSHALL ISLANDS

LEAP Program:

Does not participate

Byrd Program:

RMI Scholarship Grant and Loan Board

P.O. Box 1436

Majuro, Marshall Islands 96960

TEL: (692) 625-3108*

FEDERATED STATES

OF MICRONESIA

LEAP Program:

Does not participate

Byrd Program:

Federated States of Micronesia

1725 N Street, NW

Washington, DC 20036

TEL: (202) 223-4383

REPUBLIC OF PALAU

LEAP Program:

Does not participate

Byrd Program:

Ministry of Education

Bureau of Curriculum & Program Development

P.O. Box 189

Koror, Republic of Palau 96940

TEL: (680) 488-1464*

* To call from the U.S., dial 011 before the

country code shown in parentheses.

67939_US_Dept_Educ_High_Rev.p65 80 10/25/2000, 10:57 AM
75

You also might wish to create your own reminders

and information sheets for students.

67939_US_Dept_Educ_High_Rev.p65 81 10/25/2000, 10:57 AM
Federal student financial aid information

(includes texts of some publications)

from the U.S. Department of Education http://www.ed.gov/studentaid

Free Application for Federal Student Aid

(FAFSA)—apply on the Web

and/or look up federal school codes http://www.fafsa.ed.gov

Hope and Lifetime Learning tax credits http://www.irs.ustreas.gov

For general information about scholarships,

financial aid, planning a career, selecting a http://www.collegeispossible.org

school, paying for school, and chat nights http://www.mapping-your-future.org

 Search for a school by name, location,

program, degree offerings, or a

combination of criteria http://www.nces.ed.gov/ipeds/cool

Federal tax returns and taxpayer help

from the U.S. Internal Revenue Service http://www.irs.ustreas.gov

Free scholarship search services http://www.finaid.org

http://www.college-scholarships.com/

100college.htm

Information on the SAT and other tests http://www.collegeboard.org

Information on ACT http://www.act.org

Register with the Selective Service http://www.sss.gov

Calculate loan repayments http://www.ed.gov/DirectLoan/calc.htm

The U.S. Department of Education does 

endorse the nonfederal web sites in this lis

the sponsors of the sites, or any produc

presented on the sites or links.

67939_US_Dept_Educ_High_Rev.p65 83 10/25/2000, 10:58 AM
“...there isn’t enough financial aid

for students like me.”

False. Many students and parents have the impression that the budget for the federal student aid programs has been severely reduced. In fact, funding for

these programs has grown steadily. While it’s true

that the aid available cannot meet the full financial

need of all students, it’s still important to apply and

find out how much aid you’re eligible for at your

school of choice.

“...only students with good grades

get financial aid.”

False. Many students think that financial aid is

awarded on the basis of grades. While a high grade

point average will help a student get into a good

school and may help with academic scholarships,

most of the federal student aid programs do not

take a student’s grades into consideration. Provided

a student maintains satisfactory academic progress

in his or her program of study, federal student aid

will help a student with an average academic record

complete his or her education.

“...you have to be a minority to get

financial aid.”

False. Funds from federal student aid programs are

awarded on the basis of financial need, NOT on the

basis of race or creed. The Free Application for Federal

Student Aid (FAFSA)—the financial aid application for

these programs—doesn’t even collect this kind of information about an applicant.

“...millions of dollars in

scholarships go unawarded each

year, so I’ll get some of that

money. I won’t need governmen

help.”

Only partly true. Most of the money referred 

in such statistics is offered by companies to their

employees’ children or by organizations to their

members (or their members’ children). While it 

well worth researching nonfederal scholarships a

grants, the truth is that the majority of student a

available comes from the federal government.

Therefore, filling out a FAFSA is an important fir

step for any student.

For more information about federal student aid, 

http://www.ed.gov/studentaid or call the Fed

eral Student Aid Information Center at

1-800-4-FED-AID (1-800-433-3243).

TTY: 1-800-730-8913.

Toll number for inquirers calling from foreign

countries: 1-319-337-5665.

Federal Student Aid Web Site:

http://www.ed.gov/studentaid

Federal Student Aid Information Center:

1-800-4-FED-AID

67939_US_Dept_Educ_High_Rev.p65 84 10/25/2000, 10:58 AM
It pays to stay in schoo

Yes, maybe you could, but statistics are agains

Consider these average earnings:

High school dropout—$19,700 a year

High school graduate—$26,000 a year

College graduate—$40,100 a year

Sometimes it’s hard to stay in school if you t

you need to be working to earn money. But 

finish high school and go on to college, you’l

wider variety of jobs to choose from, and yo

earn more—especially in the long run.

If you’re having trouble deciding what to do, 

your school counselor. Ask about taking an a

test or interest inventory. And remember, yo

have to know exactly what career you want 

you start college; often a year or two of coll

helps a student explore different subject are

decide on one.

Think of college as an investment: you spend 

now so you can earn more later. Take a look 

http://www.ed.gov/studentaid for informat

about the student aid programs administered b

U.S. Department of Education. You can also cal

Federal Student Aid Information Center at

1-800-4-FED-AID (1-800-433-3243) and ask f

free copy of Funding Your Education—or simply 

load it from http://www.ed.gov/prog_info/SF

But I don’t know what

career to go into!

Can’t I get a good job now?

Doesn’t college cost a

lot of money?

(Bachelor’s Degree)

67939_US_Dept_Educ_High_Rev.p65 85 10/25/2000, 10:58 AM
A first step in deciding what to do after high school

is to talk with your school counselor or a teacher

for advice. Ask your school counselor about taking

an aptitude test or interest inventory to find your

strengths, weaknesses, and interests to discover potential career choices that are right for you.

1. Learn about yourself.

• Values—What is important to you?

• Interests—What appeals to you?

• Aptitude—What are you good at?

2. Talk to people.

Once you’ve narrowed your career choices, talk

to people who are working in that field or, if

possible, find a part-time job in that field.

It’s helpful to ask questions such as, “What’s

good and bad about this job?” “How did you

learn your trade?” There are many sources of

career and job outlook information available—

go to your school library, public library, or

school counselor.

3. Consider how much training you will

need for the career you’re interested in

• High school diploma: cashier, reception

salesperson, security guard, telephone

operator, waiter/waitress

• Special career training: auto technician

firefighter, machinist, medical technician,

police officer, computer operator,

commercial artist

• College degree: accountant, counselor,

engineer, nurse, pilot, teacher, public relati

specialist

• Graduate degree: college professor,

dentist, lawyer, veterinarian, research

scientist, architect

For information about specific careers, see the

Occupational Outlook Handbook at

http://stats.bls.gov/opbhome.htm or in a libr

For information about financial aid for college or

vocational school, see http://www.ed.gov/student

Occupational Outlook Handbook:

http://stats.bls.gov/opbhome.htm

Financial Aid:

http://www.ed.gov/studentaid

67939_US_Dept_Educ_High_Rev.p65 86 10/25/2000, 10:58 AM
Getting training after high school may help you get

a better-paying job doing work you like. But going

to school is a big investment. You’re investing your

time. Chances are you’ll also have to invest your

own money or take out a student loan to go to

school. So you need to be sure that you’re choosing

the right school.

1. Talk to your counselor. Your school

counselor is the first stop for information about

the options available to you. Counselors can

help you focus on your needs and goals, and

they have information about different types of

schools. Your counselor also can help you

collect or prepare application materials.

2. Shop around. Contact more than one school.

If you’re looking for vocational training, check

the Yellow Pages under “Schools” for phone

numbers. If your area has a community college,

call the admissions office and find out what

kinds of training the college offers.

3. Visit the school. Call the school and schedule

a visit, preferably while classes are being taught.

Get a feel for the school; make sure you’re

comfortable with the facilities, the equipment,

the teachers, and the students.

4. Don’t be afraid to ask! A good schoo

be happy to answer your questions abou

programs. Ask the school about its stude

How many graduate? How many get job

because of the training they received? W

kind of job placement services does the 

offer students and graduates?

5. Check the cost. Make sure the school 

you a clear statement of its tuition and fe

Remember that any financial aid you get 

applied first to paying the school’s tuition 

fees. If there’s any money left over, the sc

will give it to you to help you pay for thi

such as food and rent.

6. Call these numbers. Call your local B

Business Bureau, state higher education a

or consumer-protection division of your 

attorney general’s office to find out if the

been any complaints about the school. C

U.S. Department of Education’s Federal S

Aid Information Center’s toll-free numbe

(1-800-4-FED-AID) if you have any que

about your financial aid at the school. Yo

also access our web site shown below.

Visit our web site at

http://www.ed.gov/studentaid

67939_US_Dept_Educ_High_Rev.p65 87 10/25/2000, 10:58 AM
Before you sign up for a vocational school or correspondence course:

1. Define your goals. Do you want to learn a

skill, prepare for a test, get a job, or get a license

or certification?

2. Comparison shop. Look at the choices.

Which offers the best combination of affordable

fees and a solid education? Does on-the-job

training, a community college program, a

correspondence course, or a vocational school

make the most sense?

3. Do a background check. Ask employers you

might want to work for what they think about

the school. Call recent graduates to ask about

their experience at the school. Visit the school

when class is in session. Stick around to talk to

current students. Call the agency that licenses

or accredits the school to see if it meets

required standards. Call your local Better

Business Bureau to find out if there have been

any complaints about the school.

Important Points:

Take your time. Don’t sign a contract until

you’ve read it...and understood it. Ask questions

about repayment terms, refunds and cancellation

policies, and finding a job after you finish the

course. What happens if you have to quit before

you finish? It’s a good idea to ask someone you

trust to read and evaluate the forms, too.

If you’re unhappy with the school or program

you chose—or if you think you were misled—

complain. To whom? The agency that licenses or

accredits the school, the Federal Trade Commission

or the Better Business Bureau.

Federal Trade Commission’s web site :

http://www.ftc.gov

For further information about choosing a vocatio

school, access the Consumer Protection area of 

Federal Trade Commission’s web site at

http://www.ftc.gov

67939_US_Dept_Educ_High_Rev.p65 88 10/25/2000, 10:58 AM
“ This scholarship is guaranteed or

your money back.”

Wrong. No one can guarantee to get you a

grant or scholarship. Remember, too, that school

guarantees often have conditions or strings attached. Get school refund policies in writing.

“ You can’t get this information

anywhere else.”

Unlikely. Many free lists of scholarships are

available. Check with your school counselor or

librarian for free information about current

scholarships before you pay someone for the

same or similar information. For more information about paying for college, visit the U.S. Department of Education’s web site for students at

http://www.ed.gov/studentaid

“ May I have your credit card or

bank account number to hold this

scholarship?”

No way. It may be a setup for an unauthorized

withdrawal from your account. Don’t give out

your or your parents’ credit card or bank account number on the phone without first getting

all the information in writing.

“ We’ll do all the work.”

Don’t be fooled. There’s no way around it. You

must apply for scholarships or grants yourself.

“ The scholarship will cost you

some money.”

That doesn’t make sense. Free money

shouldn’t cost a thing. Don’t pay anyone w

claims to have access to a scholarship for 

“ You’ve been selected by a

‘national foundation’ to recei

scholarship” or “You’re a fina

in a contest” (that you didn’t

enter).

Be careful. Before you send money to ap

a scholarship, check it out. Make sure the 

tion or program is legitimate. Some places 

tate legitimate foundations, federal agencie

corporations. They might even have officia

sounding names, using such words as “Nat

“Federal,” “Division,” and “Foundation” to 

students and parents into thinking they ar

mate enterprises.

To find out how to spot, stop, and report a sc

ship scam, contact the Federal Trade Commis

FTC Consumer Response Center, 600 Pennsy

Ave., NW, Washington, DC 20580.

Web site: http://www.ftc.gov

Telephone (National Fraud Information Cente

1–877–FTC–HELP (1-877-382-4357)

(TTY: 1–202–326–2502)

Federal Trade Commission:

http://www.ftc.gov

National Fraud Information Center

1–877–FTC–HELP

67939_US_Dept_Educ_High_Rev.p65 89 10/25/2000, 10:58 AM
Enrollment contracts

Read any school enrollment contract carefully before you sign it. The contract explains what the

school will give you for your money.

If a representative of the school promises you things

that are not in the contract, such as help finding a job,

ask that the promise be written into the contract

and that it be signed and dated. A promise usually is

not enforceable in court unless it is in writing.

Tuition and fees

If you’re enrolling in a community college or

four-year college, you will probably get a tuition

and fee bill before each term (semester or quarter)

begins; a portion of your federal financial aid will be

paid each term.

If you’re enrolling at a vocational school, you usually will be charged tuition and fees for the entire

educational program at the beginning. However, your

federal financial aid will usually be divided into at

least two payments. The first payment is made at the

beginning of the program, and the second payment is

made after you’ve finished half of the program.

Most schools use your financial aid to pay your tuition and fees. If there’s any left over, the school

must give it to you to help pay your living expenses.

Loans

Even if you qualify for a full Federal Pell Grant (gift

aid), your cost of attendance might not be covered.

For further consumer information,

contact the U.S. Department of Education’s

Federal Student Aid Information Center at

1-800-433-3243 (TTY: 1-800-730-8913)

If other gift aid and work-study aren’t available,

check with your school about the types of loans

you can get. Before you borrow, think about how

you will afford to pay the money back. Either the

school or the lender must give you a repayment

schedule that explains how much your loan payments will be and when you have to start making

the payments.

Remember that you must pay back a loan,

even if you drop out of school or don’t find

a job after you graduate.

Refund policy

It’s important to find out whether you can get a 

fund from the school if you drop out before you 

your degree or certificate. Every school that use

federal financial aid must have a written refund

policy, and it must give you a copy of that policy 

you request it.

If financial aid is used to pay your costs at the

school, at least part of your refund will probably 

to the federal aid program it came from. If you to

out a loan, some money might go to your lender

reducing the amount of the loan that you have to

repay. Any remaining refund goes to you.

Be sure to let the school know exactly when you

plan to withdraw—it may reduce your debt.

67939_US_Dept_Educ_High_Rev.p65 90 10/25/2000, 10:58 AM
Note: Military scholarships require recipients to 

in one of the U.S. Armed Forces while attend

college. After graduating, recipients will have a se

obligation in either the reserves or active du

Army Reserve Officer Training Corps (ROTC

scholarships are offered at hundreds of colle

universities across the nation. Application pac

information on eligibility, and the telephone 

of an ROTC advisor in your area are availabl

College Army ROTC, Gold QUEST Center, P

3279, Warminster, PA 18974-9872.

Telephone: 1-800-USA-ROTC (1-800-872-

Web site: http://www.armyrotc.com

The Air Force Reserve Officer Training Corp

(AFROTC) college scholarship program targ

dents pursuing technical degrees, such as cer

engineering and science programs, although 

dents entering a wide variety of majors may 

cepted. Information about AFROTC scholars

available from: HQ AFROTC/RRO, 551 East 

Blvd., Maxwell AFB, AL 36112-6106.

Telephone: 1-800-522-0033, ext. 2091.

Web site: http://www.afoats.af.mil

The Naval Reserve Officers Training Corps

(NROTC) four-year scholarship is available t

dents with no more than one year of college 

and is awarded annually. For information abo

NROTC scholarship program, contact any co

that offers NROTC, or write to: Chief of Na

cation and Training (CNET), 250 Dallas Stree

OTE6/081, Pensacola, FL 32508-5220.

Telephone: 1-800-NAV-ROTC (1-800-628-

Web site: http://www.cnet.navy.mil/nrotc/nro

E-mail: nrotc.scholarship@smtp.cnet.na

Army Reserve Officer

Training Corps

Air Force Reserve Officer

Training Corps

Naval Reserve Officers

Training Corps

67939_US_Dept_Educ_High_Rev.p65 91 10/25/2000, 10:58 AM
87

student is expected to complete at least 24

semester or trimester hours, 36 quarter hours, or

900 clock hours.

Award Year—The time beginning on July 1 of one

year and extending to June 30 of the next year.

Funding for Federal Pell Grants and campus-based

programs is provided on the basis of the award

year—for example, a student is paid out of funds

designated for a particular award year, such as the

2001-02 award year.

Base Year—For analyzing student financial need,

the base year is the calendar year preceding the

award year. For instance, 2000 is the base year used

for the 2001-02 award year. The Free Application

for Federal Student Aid (FAFSA) uses family

income from the base year because it is more

accurate and easier to verify than projected-year

income.

Campus-Based Programs—The term that applies

to three federal financial aid programs administered

on campus by eligible institutions of postsecondary

education. These programs are

■ Federal Supplemental Educational Opportunity

Grant (FSEOG) Program,

■ Federal Perkins Loan Program, and

■ Federal Work-Study (FWS) Program.

Central Processing System (CPS)—ED’s

processing facility for the Free Application for

Federal Student Aid (FAFSA). The CPS

■ receives student information from application

processors,

■ produces Institutional Student Inform

Records (ISIRs).

Citizen/Eligible Noncitizen—A student 

one of the following to receive federal stu

■ U.S. citizen,

■ U.S. national (includes natives of Amer

Samoa or Swain’s Island), or

■ U.S. permanent resident who has an I-

551, or I-551C (Alien Registration Rece

Card).

If a student is not in one of these categorie

or she must have an Arrival-Departure Rec

from the U.S. Immigration and Naturalizati

Service (INS) showing one of the followin

designations:

■ “Refugee,”

■ “Asylum Granted,”

■ “Indefinite Parole” and/or “Humanitaria

Parole,”

■ “Cuban-Haitian Entrant (Status Pending

■ “Conditional Entrant” (valid only if issu

before April 1, 1980).

If a student has only a “Notice of Appro

Apply for Permanent Residence” (I-171 

464), he or she is not eligible for feder

aid.

67939_US_Dept_Educ_High_Rev.p65 93 10/25/2000, 10:58 AM
p

Republic of Palau are eligible only for Federal

Pell Grants, Federal Supplemental Educational

Opportunity Grants, Federal Work-Study, and

Byrd Scholarships. These applicants should

check with their schools’ financial aid administrators for more information.

Consolidation Loan—A loan that combines

multiple federal student loans into a single loan

with one monthly payment. Consolidation loans are

available through the Federal Family Education

Loan (FFEL) Program and the Direct Loan Program.

Both allow the borrower to combine different

types and amounts of federal student loans to

simplify repayment.

Note: A consolidation loan pays off the existing

loans; the borrower then repays the consolidation

loan.

Cost of Attendance (COA)—A student’s cost of

attendance at a postsecondary institution includes

■ tuition and fees,

■ room and board expenses while attending

school,

■ allowances for books and supplies (including a

reasonable allowance for renting or purchasing

a personal computer),

■ transportation,

■ loan fees for federal student loans (if applicable),

■ dependent-care costs,

88

y g

established by federal law. The cost of attendanc

compared to a student’s Expected Family

Contribution (EFC) to determine the student’s

need for aid (COA - EFC = student’s financial nee

Default—Failure to repay a loan according to th

terms of the promissory note. There can be serio

legal consequences for student-loan defaulters.

Default Rate—A percentage calculated each ye

for a postsecondary school on the basis of the

number of former students who have defaulted 

the Federal Family Education Loan (FFEL) Progra

and/or Direct Loan Program loans received whil

attending that school.

Eligible Program—A course of study that

requires a certain minimum number of hours of

instruction and period of time and that leads to 

degree or certificate at a school participating in

one or more of the federal student financial aid

programs described in this handbook. Generally

get student aid, a student must be enrolled in an

eligible program.

Estimated Financial Assistance—Student

financial aid that must be taken into account to

determine eligibility for federal student loans.

Estimated financial assistance is called “resources

in determining eligibility (and preventing

overawards) in the campus-based programs.

Expected Family Contribution (EFC)—

Calculated using a formula established by Congr

the amount that a student’s family is expected to

contribute toward the student’s cost of attendan

The EFC is used to determine whether a student 

eligible for federal student financial aid. It is prin

67939_US_Dept_Educ_High_Rev.p65 94 10/25/2000, 10:58 AM
89

p

and Federal Consolidation loan programs. Funds for

these programs are provided by private lenders; the

loans are guaranteed by the federal government.

Financial Need—The difference between a

student’s cost of attendance (COA) at a school and

the Expected Family Contribution (EFC). (COA -

EFC = student’s financial need)

Free Application for Federal Student Aid

(FAFSA)—An application completed and filed by a

student who wishes to receive federal student

financial aid. The application collects household

and financial information used by the federal

government to calculate the Expected Family

Contribution (EFC) to postsecondary education

costs. See also Renewal FAFSA.

Institutional Student Information Record

(ISIR)—An electronic federal “output” record for

schools that contains a student’s Expected Family

Contribution (EFC) as calculated by ED’s Central

Processing System (CPS) and all the financial and

other data submitted by the student on the Free

Application for Federal Student Aid (FAFSA). See

also Student Aid Report (SAR).

Need—The difference between a school’s cost of

attendance (COA) and a student’s Expected Family

Contribution (EFC). (COA - EFC = student’s

financial need)

Need Analysis—The process of analyzing

household and financial information on a student’s

financial aid application and calculating an

Expected Family Contribution (EFC) to determine

the student’s need for financial aid for

postsecondary education costs.

py 

(EFC), or a student not meeting other eligi

criteria, such as citizenship or enrollment 

eligible program.

Promissory Note—A binding legal docum

a borrower signs to get a loan. By signing t

a borrower promises to repay the loan, wit

interest, in specified installments. The prom

note also includes any information about

■ grace periods,

■ deferment or cancellation provisions, a

■ a borrower’s rights and responsibilities 

respect to that loan.

Renewal FAFSA—A partially pre-formatte

version of the FAFSA that students may use 

applied for federal financial aid the previo

year. If a student is among those allowed to

complete a Renewal FAFSA, it will be sent 

to him or her by the FAFSA processor or th

school. See also Free Application for Feder

Student Aid (FAFSA).

Resources—Student financial aid that mu

taken into account to prevent overawardin

the campus-based programs. Resources are 

“estimated financial assistance” in determi

student’s eligibility for federal student loan

SAR Information Acknowledgement—

“output” document, similar to the SAR, tha

central processor sends to a student who f

FAFSA through FAFSA on the Web, files thr

EDExpress at a postsecondary school, or m

changes through Corrections on the Web. 

Student Aid Report (SAR).

67939_US_Dept_Educ_High_Rev.p65 95 10/25/2000, 10:58 AM
p

returns (1040A, 1040EZ). For eligible students, the

Central Processing System (CPS) automatically

excludes the assets when calculating the EFC.

Student Aid Report (SAR) —A federal “output”

document sent to a student by ED’s central

processor. A student receives a SAR if he or she

files a paper Free Application for Federal Student

Aid (FAFSA) or files electronically using FAFSA

Express. The SAR contains financial and other

information reported by the student on the FAFSA.

That information is entered into the processing

system, and the SAR is produced. The student’s

Expected Family Contribution (EFC) is printed on

the front of the SAR. (See also Institutional

Student Information Record and SAR Information

Acknowledgement.)

Student financial assistance programs—Programs

administered by the U.S. Department of Education:

■ Federal Pell Grants,

■ Federal Supplemental Educational Opportunity

Grants (FSEOG),

■ Federal Work-Study (FWS),

■ Federal Perkins Loans,

■ Federal Direct Stafford/Ford Loans (both

subsidized and unsubsidized),

■ Federal Direct PLUS Loans (for parents),

■ Federal Direct Consolidation Loans,

■ Federal Stafford Loans (both subsidized and

unsubsidized),

90

■ Robert C. Byrd Honors Scholarship Program

(Byrd Program).

Subsidized loan—Awarded to a student on the

basis of financial need. The federal government

pays the borrower’s accrued interest during som

significant periods, such as when the student is 

school, thereby “subsidizing” the loan.

Unsubsidized loan—Is not need based; the

borrower is responsible for accrued interest

throughout the life of the loan.

Verification—A procedure through which a

school checks the information a student reporte

on the Free Application for Federal Student Aid

(FAFSA), usually by requesting a copy of signed t

returns filed by the student and, if applicable, th

student’s parent(s) and spouse. Schools must ver

information about students selected for verificat

by ED’s central processor, following procedures

established by federal regulations. The processor

prints an asterisk next to the Expected Family

Contribution (EFC) on SARs and SAR Informati

Acknowledgements and flags ISIRs to identify

students selected for verification. Many schools 

select certain other students for verification in

addition to those selected by the central process

William D. Ford Federal Direct Loan Progra

(Direct Loan Program)—Federal Direct Staffo

Ford Loans (Direct Subsidized Loans), Federal

Direct Unsubsidized Stafford/Ford Loans (Direct

Unsubsidized Loans), Federal Direct PLUS Loans

(for parents), and Federal Direct Consolidation

Loans. Funds for these programs are lent to stud

and parent borrowers by the federal governmen

through schools that participate in the program.

67939_US_Dept_Educ_High_Rev.p65 96 10/25/2000, 10:58 AM
g y

CPS Central Processing System

DRN Data Release Number

ED U.S. Department of Education

EFA estimated financial assistance

EFC Expected Family Contribution

EOC Educational Opportunity Center

FAFSA Free Application for Federal

Student Aid

FFEL Federal Family Education Loan

FSAIC Federal Student Aid Information

Center

FSEOG Federal Supplemental Educational

Opportunity Grants

FTC Federal Trade Commission

FWS Federal Work-Study

GAO U.S. General Accounting Office

GEAR UP Gaining Early Awareness and

Readiness for Undergraduate

Programs

GED General Education Development

HHS U.S. Department of Health and

Human Services

Record

LEAP Leveraging Educational As

Partnership

NROTC Naval Reserve Officers Tra

Corps

NSLDS National Student Loan Dat

PIN Personal Identification Nu

PSAT/NMSQT Preliminary SAT/National 

Scholarship Qualifying Tes

ROTC Army Reserve Officer Trai

Corps

SAP satisfactory academic pro

SAR Student Aid Report

SSA Social Security Administra

SSIG State Student Incentive Gr

(obsolete; now LEAP)

SSN Social Security Number

TTY teletype

VA U.S. Department of Vetera

WIA Workforce Investment Act

67939_US_Dept_Educ_High_Rev.p65 97 10/25/2000, 10:58 AM
Student Financial Assistance

U.S. Department of Education

67939_US_Dept_Educ_High_Rev.p65 98 10/25/2000, 10:58 AM