2009 annual statewide financial aid conference for high school counselors n.
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2009 Annual Statewide Financial Aid Conference for High School Counselors PowerPoint Presentation
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2009 Annual Statewide Financial Aid Conference for High School Counselors

2009 Annual Statewide Financial Aid Conference for High School Counselors

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2009 Annual Statewide Financial Aid Conference for High School Counselors

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  1. 2009Annual Statewide Financial Aid Conference for High School Counselors • November 4, 2009

  2. Conference Agenda • PowerPoint presentation • Break • Financial aid administrator panel Q & A session

  3. THANKS TO SPONSORS!!! Great Lakes Higher Education Guaranty Corporation • Minnesota Association of Financial Aid Administrators (MAFAA)

  4. College Access Champion Award • Great Lakes is offering College Access Champion Awards of $5,000 to repay federal student loan debt • For teachers, counselors, staff, administrators in Title I eligible high schools • Employed at school for 3 or more years • Requires application, essay and letter of reference • See application/brochure in right side of packet

  5. Presentation Overview • Application Process • FAFSA Changes • Parental Information • Post-application process • Sources of financial aid • Additional resources for counselors

  6. Application Process

  7. Applying for 2010-2011 • Submit FAFSA after Jan 1, 2010 • Final 2010-2011 FAFSA deadline is June 30, 2011 • FAFSA must be received no later than 30 days after term start date to receive State Grant for a term • College financial aid deadlines earlier • Posted on school web site or OHE counselor’s guide • Carleton, Macalester, St. Olaf, Gustavus Adolphus (and many east coast colleges) require CSS Profile form in addition to FAFSA • • Submit FAFSA even if family has high income/assets • Required for most loan programs

  8. FAFSA Forms • Students encouraged to use FAFSA on the Web • Catches errors up front and reduces delays • No more bulk orders of paper FAFSA • Students can use PDF version of paper 2010-2011 FAFSA available at: • Can complete PDF on the computer or by hand and mail in • Schools can download and make copies • Students can also call (800)433-3243 to order paper FAFSA • 2010-2011 paper FAFSA # 6 in packet

  9. FAFSA Forms • Fall 2009: Limited supply of 2010-2011 FAFSA on the Web (FOW) Worksheets automatically mailed to schools by U.S. Department of Education • Also available in PDF at: • Additional supply at: • 2010-2011 FOTW Worksheet • Helps student determine answers prior to entering data on-line • Question order follows FAFSA on the Web, so different from paper FAFSA • Student can download from

  10. FAFSA on the Web Shorter URL!!! • Less likely for students to choose wrong web site ( is commercial site that charges a fee) • Old URL still works

  11. FAFSA on the Web • Apply • Reapply • Apply for PIN • Find college codes • Check status of FAFSA • Make corrections • Add additional colleges • Print SARs

  12. PIN Number • Apply for PIN in real-time while completing FOTW • Make sure name/dob matches name/dob used on Social Security card • Applies to both student and parent signing form • PIN can be used: • As electronic signature on FAFSA on Web • Check application status • Make corrections • Sign master promissory note for federal loans • Look up student’s student loan and grant history

  13. FAFSA on the WebChanges • 2010-11 FOTW redesign facilitated by technology upgrade • Updated navigation reduces the number of pages and length of the application • Display of help text and instructions will be enhanced by: • use of field instructions • flyover text • modal boxes

  14. Examples of New Web Flow Logic • State of legal residence (Questions 18, 19 - Step 1) and date of residency will be skipped if student confirms s/he has resided at same address for at least 5 years • Drug conviction (Question 23, Step 1) question will not be presented to applicants who indicate that they will be a first-time college student • Additional financial information and untaxed income questions will be presented in a much simplified “check box” format.

  15. Examples of New Web Flow Logic • Selective Service registration (Question #22, Step 1) • Will only be offered to students who are male and younger than 26 • Simplification for students 24 and older and for married students (Step 3) • If the applicant is determined to be independent due to date of birth or marital status, only two dependency questions will be displayed (questions 53 and 54 – to help independent applicants accurately report household size)

  16. Questions Related to Being Homeless • Effective 2009-2010, definition of independent student was expanded to include: • Homeless unaccompanied youths (Questions 56 & 57 Step 3) • Determination must be made by: • high school or district homeless liaison; or • director of HUD emergency shelter program; or • director of runaway or homeless youth basic center or transitional living program • Youths at risk of homelessness (Question 58 Step 3) • Determination must be made by: • director of runaway or homeless youth basic center or transitional living program

  17. Examples of New Web Flow Logic • Identifying Homeless Students • A new screening question will display asking applicants if they are homeless or at risk of being homeless • The three homeless determination questions (# 56, 57, 58) will only be presented if student is 21 or younger and answers “Yes” to the homeless screening question • Students who are 22 or 23 and answer “Yes” to the homeless screening question, and students who are 21 or younger but answer “No” to all three homeless determination questions, will be – • Taken down an alternate path to allow them to submit their FAFSA without parental data, and • Directed to follow-up with their financial aid office

  18. Verifying Student is Homelessor Emancipated • Financial aid office may request documentation of homeless unaccompanied youth status • List of district or high school homeless liaisons is in packet (#7) • List of shelters and transitional housing programs in packet (#8) • Must be funded by HUD (shown on listing) • If third party documentation not possible, financial aid administrator can verify based on documented interview with student • Financial aid office likely to request documentation of emancipated status (#54 Step 3) • Emancipation in MN limited to cases of legal marriages and parental consent

  19. FAFSA on the WebChanges • Expanded student marital status to four options to match those used by IRS (Question 16 Step 1) • Removed veterans’ benefits questions because they are no longer required • Added text explaining that the value of military housing or a military housing allowance should not be included as untaxed income benefits (Question 45g and Question 93g) • Added a question about earnings from work under a cooperative education program (e.g. internship) at an institution of higher education to be excluded from income (Question 44f and Question 92f)

  20. FAFSA on the WebChanges • Federal Student Aid and the IRS are developing a collaborative solution that simplifies FAFSA completion • The new process will allow FAFSA on the Web applicants to request and retrieve their income tax data from the IRS • Once the data is retrieved it can be automatically transferred to FOTW

  21. How will this process work? Students will begin completing FOTW. A link to IRS will display in the income section for the parent and the income section for students. “You may access the IRS site to retrieve your income data to complete your application or use your tax return. If you would like to retrieve your data from the IRS click here.”

  22. How Will the IRS Site be Accessed? Through the FSA PIN authentication and IRS authentication processes.

  23. How Will Applicants Transfer Data to FOTW? Select “Transfer” to return the IRS data to the FAFSA session

  24. IRS Data Share Implementation Schedule • 2009-2010 IRS data share will be implemented in January 2010 • Pilot to test proof of concept • Participation is voluntary • 2010-2011 IRS data share will be implemented in the Summer of 2010 • Full implementation • Participation is voluntary • Verification • For school’s benefit, will set flag on ISIR to identify when income data is from IRS versus self-reported

  25. FAFSA on the WebChanges • Retention, graduation and transfer rates within FAFSA on the Web • When students use the school code lookup within FOTW to list colleges on the form, they will be presented with each college’s reported retention, graduation and transfer rates • This information will also display on the FAFSA on the Web confirmation page

  26. FAFSA on the WebChanges • Students will receive more detailed information on their FOTW confirmation page and Student Aid Report (SAR). In addition to the EFC, students will receive: • An estimate of the Pell Grant award amount • An indication of student loan eligibility • Links to College Navigator for detailed college information – programs offered, tuition rates, graduation rates, etc. • Also, students can now e-mail the confirmation page to their own personal email address

  27. Future FAFSA Simplification • New web technology used to significantly streamline the application form • Enhanced skip logic used to reduce the number of questions many students have to answer • IRS Data Share process used to reduce the number of income questions students and parents must answer • Proposals to eliminate assets, untaxed income, dependent student income

  28. FAFSAParental Information

  29. When Student is a Parent • ‘Do you have children who receive more than half of their support from you?” (#51 Step 3) • Answer “no” if student and child live with student’s parents and they provide more than half of the support for student’s child • Answer “yes” if student provides more than half the support for the child • Public assistance to student can be considered student support of child

  30. Other Relatives and Legal Guardians • Parents’ information • Grandparents, foster parents, other relatives and legal guardians are NOT considered parents on the FAFSA unless they legally adopted student • Do NOT substitute information about above parties in parent section on FAFSA • In many cases, these applicants will be able to apply as independent via: • Meeting one of the independent criteria in Step Three; or • Dependency override

  31. Biological or Adoptive Parents • If biological/adoptive parents married, report information for both parents • If biological/adoptive parents are divorced or separated, provide information for parent: • Student lived with the most in last year • Or, if lived equal periods with each parent, parent who provided the most financial support in last year or most recent year support provided • If that parent remarried, include stepparent’s information, even if stepparent did not adopt student • Note: Unlike FAFSA, CSS Profile form will require information for non-custodial parent

  32. Biological or Adoptive Parents • If student’s biological/adoptive parents are living together but not married, provide information for parent who provided the most financial support in the previous year or most recent year support was provided • Generally, this is parent with highest income • If biological/adoptive parent is single or widowed, provide information about surviving parent • If surviving parent remarried, include stepparent’s information, even if stepparent did not adopt student

  33. FAFSA Handouts for Students • Tips for Completing the 2010-2011 FAFSA (#9 in packet) • Completing the FAFSA: Special Guidance Related to Dependency Status and Providing Parental Information (#10 in packet) • Completing the FAFSA Flowchart (#11 in packet)

  34. Post-ApplicationProcess

  35. FAFSA Results • Student notified of FAFSA processing results by: • E-mail notification with link to student’s SAR online if student’s e-mail address provided on: • Paper FAFSA (takes 2 weeks) • FAFSA on the Web (takes 1-2 days if electronically signed with PIN; 2 weeks if mailed in signature page) • Make sure student adds federal email address to address book to avoid delivery problems • If student has a PIN, can view SAR online at • Draft 2010-2011 SAR #12 in packet

  36. Corrections • If a correction to applicant data is needed, the correction may be made: • On the paper SAR; • Using Corrections on the Web if student has a PIN (; or • By the school, using software or web-access system provided by the U.S. Dept of Ed

  37. Verification • Certain applications are selected for verification • Family must complete verification worksheet sent by financial aid office • Must attach tax returns, W2 statements and other supporting documentation • Don’t make corrections after verification without consulting financial aid administrator!!

  38. Professional Judgment • Normally, a family’s Expected Family Contribution (EFC) is based on income for the previous tax year • For 2010-2011 academic year, tax year 2009 • Federal and state financial aid laws allow financial aid administrators to use their “professional judgment” to alter data on the FAFSA for special circumstances • Adjustments are typically performed as corrections after the original FAFSA is submitted

  39. Professional Judgment • Financial aid administrators have authority to make adjustments to cost of attendance, dependency status or data (income, assets, etc.) used to calculate EFC • Adjustments must be documented, based on unusual circumstances and applied on a case-by-case basis • Professional judgment is OPTIONAL • School not required to honor another school’s professional judgment adjustment, but can

  40. Professional Judgment • Common examples include: • Significant change in income from past tax year based on unemployment, underemployment, death, divorce, military service or natural disaster • Unusually high medical expenses • Nursing home expenses • Elementary or secondary school tuition • Significant college costs for dependent student’s parent attending college • Dependency override • Family should contact financial aid administrator to discuss unusual circumstances

  41. What is a Dependency Override? • Gives financial aid administrator authority to allow otherwise dependent applicant to apply as independent applicant due to unusual circumstances • Parental abuse, abandonment, incarceration, etc. • Not used simply because student lives outside parent household after age 18 or parents object to providing data • Must be supported by documentation, preferably by someone outside immediate family • Student should contact financial aid office for instructions after submitting FOTW without parental data

  42. Completing FAFSA Without Parental Information • For students who don’t qualify for a dependency override: • An applicant who is determined to be dependent but whose parents refuse to provide parental data on the FAFSA and refuse to provide financial support will have the option to submit the FAFSA for an unsubsidized loan only • FAFSA on the Web will present a path that allows the applicant to indicate that he or she will not provide parental data on the form and will allow the applicant to submit the FAFSA • School will later require statement from one parent that parents refuse to complete the FAFSA and do/will not provide financial support to the student

  43. Zero EFC for Dependents of Deceased Armed Forces Member • EFC is automatically set to zero if: • Student’s parent or guardian was a member of the Armed Forces who died as a result of performing military service in Iraq or Afghanistan after 9/11/01; and • Student was under 24 or enrolled at an institution of higher education at the time of the death • There is not a question on the FAFSA for this item • Interface between FAFSA on the Web and Department of Defense will identify/confirm and send results to college

  44. Award Notification • Student should receive award notice from each college listed on the FAFSA once admitted to college • Important that student identifiers on FAFSA match identifiers used in admissions process • Financial aid varies depending on the cost and mix/composition of financial aid available • Compare: • Ratio of grants to loans/work-study • Remaining unmet need • NASFAA award comparison worksheet in packet • #28 on left side of packet

  45. Sources of Financial Aid

  46. Need Varies Based on Cost

  47. EFC Calculation • Federal Methodology if formula created by Congress to calculate the Expected Family Contribution (EFC) • Sample calculation in packet for future reference • #13 left side of packet • EFC Formula Book available at • Check out Office of Higher Education’s on-line estimator for EFC, Pell Grant, State Grant and tax credits at:

  48. Federal General Student Eligibility Criteria • Enrolled or accepted for enrollment in eligible program of study • Pursuing recognized credential • U.S. citizen or “eligible non-citizen” • Permanent residents with I-551 or I-551C card • Refugees, asylees, victims of human trafficking, T-Visa holders with I-94 card • Registered with Selective Service (if male and required) • Not convicted for sale of illegal drugs while receiving federal aid • Last two bullets don’t affect state financial aid