2015 Annual Statewide Financial Aid Conference for High School Counselors

1. 2015Annual Statewide Financial Aid Conference for High School Counselors • November 5, 2015

2. Application Process & FAFSA

3. Free Application for Federal Student Aid - FAFSA • Apply on-line at: www.fafsa.gov • 2016-2017 FAFSA available January 1, 2016 • The earlier, the better (for some types of aid) • Check colleges’ web sites for priority deadlines • Can complete with estimated tax figures and make corrections later • Carleton, Macalester, St. Olaf, Gustavus Adolphus (and many east coast colleges) require CSS Profile form in addition to FAFSA • https://profileonline.collegeboard.com

4. Free Application for Federal Student Aid - FAFSA • No more www.fafsa.com to worry about! • Student Financial Aid Services is transferring URL to U.S. Department of Education • For time being, existing SFAS clients can still access previous accounts

5. FAFSA on the Web (FOTW) www.fafsa.gov • Apply • Retrieve IRS data • Reapply • Apply for FSA ID • Find college codes • Check status of FAFSA • Make corrections • Add additional colleges • Print SARs

6. 2016-2017 FAFSA Changes • Draft in packet • Changes made to 2016-2017 FAFSA • Paper FAFSA colors orange and purple • No questions added/deleted • What is the FAFSA? section now page 2 • Instructions consolidated on pages 9 and 10 #5

7. 2016-2017 FAFSA Changes Based on complaints about colleges using FAFSA college code order in admissions or scholarship decisions…… • FAFSA output to colleges (ISIR record) will no longer contain other colleges listed by the student • Will still be present on ISIRs received by state financial aid agencies • Colleges receiving output won’t know the position of their code (1-10) on the FAFSA

8. Federal Student Aid ID(FSA ID) • FSA ID replaced PIN in May 2015 • Like PIN, required for both student and parent (if dependent) to electronically sign FAFSA • Is username and password • User also has 5 challenge questions • 2 from a list of possible questions • 2 created by user • 1 with important date

9. Federal Student Aid ID(FSA ID) • If user forgets FSA ID username • Will have option to answer challenge questions or receive email with secure code • Challenge questions no longer case sensitive • After successfully answering challenge questions or entering secure code from email, username appears on screen • If user forgets FSA ID password • Same steps as above, only user then directed to create new password • If user chose challenge questions, must wait 30 minutes to use new password

10. FAFSA on the WebIRS Data Retrieval • If applicant indicates filed taxes on FOTW, will be prompted to use IRS data interface • If chooses not to use IRS interface will be subject to selection for verification • IRS data available: • 2 to 3 weeks after federal tax forms filed electronically (70% of filers) • 8 to 11 weeks after paper federal tax forms filed (some have experienced longer delays) • If there is unpaid tax obligation to IRS, tax returns won’t be processed until May or June 2016

11. FAFSA on the Web IRS Data Retrieval • IRS data retrieval can be used: • While completing original FOTW • As a later correction to FOTW • Applicants will receive automatic reminder emails to go back to FOTW and use IRS data retrieval if: • They provided estimated tax figures on the FOTW • Provided actual tax figures on FOTW but did not use IRS data retrieval

12. Items Populated on FOTW from IRS Data Retrieval • Adjusted gross income • U.S. income taxes paid • Untaxed IRA distributions, pensions • Education credits • IRA deductions • Tax exempt interest • Student’s and parents’ income from work if: • Marital status is other than married • If ‘married’, total income from work from tax form will appear on screen and will need to separated by student or parent for entry into FOTW fields

13. FAFSA on the Web IRS Data Retrieval • Who CAN’T use IRS data retrieval: • Married couples who filed separate tax returns • Married couples if one filed as head of household • Student’s legal parents are unmarried and living together • Filed an amended return (must submit original 1040 and 1040x to school) • Filed Puerto Rican or foreign tax return • Filed tax return too recently • Applicants whose marital status changed since January 1 of the processing year

14. FAFSA on the Web IRS Data Retrieval Tips • SSN, name, date of birth and address must match those used on tax return • Have a copy of tax return to refer to • Trickiest part is street address, due to abbreviations and periods • St. does not match St or Street • 3rd does not match 3 or Third • See where PO box or Apt # is entered on tax form and use that same location on IRS data retrieval screen

15. 2015 FAFSA on the Web IRS Data Retrieval Tips If tax preparer put Apt # in 1040 Home Address box, put Apt # in Street Address box of IRS data retrieval screen. If Apt # is on Apt. no. box of 1040, then enter in Apt. Number box on IRS data retrieval screen. May also be an issue with PO Box. 2015

16. FAFSA on the Web IRS Data Retrieval • If family can’t use IRS Data Retrieval, will need to produce official IRS tax return transcript if selected for verification • http://www.irs.gov/Individuals/Get-Transcript • Can order tax return transcript online that will come in the mail • Or, can order by phone (800) 908-9946 • Allow 5-10 days for mail delivery

17. Criteria for Independent Applicant • At least 24 years old by December 31st of the award year covered by the FAFSA • Graduate or professional student • Married (does NOT include cultural marriage) • Has legal dependents other than a spouse who receive more than one half of their support from the student during school year • Any time since turning 13 was/is an orphan, in foster care, or ward of the court • On active duty or veteran of the U.S. Armed Forces • Emancipated minor or in legal guardianship as determined by a court (by someone other than parent) • Unaccompanied homeless youth as documented by: • (high school/district homeless liaison, authorized shelter administrator, financial aid administrator interview)

18. Other FAFSA Handouts for Students • The Sooner the Better • The FAFSA: Why, When and Then What? • Top 10 Financial Aid Questions • Tips for Completing the 2015-2016 FAFSA • Completing the FAFSA: Special Guidance Related to Dependency Status and Providing Parental Information • Impact of Marital Status on the 2016-2017 FAFSA #6 #11 #23 #7 #24 #8

19. FAFSA Training • More detailed FAFSA training for new counselors offered at this workshop following presentation and Q & A • Also, FAFSA line-by-line training offered to professionals working with students by • www.minnesotacollegegoal.org

20. 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: • FAFSA on the Web (takes 1-2 days if electronically signed with FSA ID; 2 weeks if mailed in signature page) • Make sure student adds federal email address to address book to avoid delivery problems FederalStudentAidFAFSA@cpsemail.ed.gov • If student has a FSA ID, can view SAR online at www.fafsa.govand make corrections • Don’t forget to sign corrections!

21. If Selected for Verification • Verification items tailored to each student and indicated on SAR/ISIR • Some students may need to verify all items; others not • If items limited to data from tax return, verification can be accomplished through IRS data retrieval process alone • If verification items include both tax return and other items • Verification worksheet sent by college

22. Professional Judgment • Normally, a family’s Expected Family Contribution (EFC) is based on income for the previous tax year • For 2016-2017 academic year, tax year 2015 • Financial aid administrators can use their “professional judgment” to alter data on the FAFSA for special circumstances (e.g., unemployment) • E.g. use 2016 income rather than 2015 • Adjustments are typically performed as corrections by the financial aid office after the original FAFSA is submitted and verified

23. 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 paid • Significant college costs for dependent student’s parent attending college • Dependency override • Family should contact financial aid administrator to discuss unusual circumstances

24. 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, parents in another country, 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

25. Changes Coming for 2017-2018 FAFSA • Will use prior-prior year tax information • 2015 instead of 2016 • Should avoid problems with tax information not being ready when FAFSA is filed • FAFSA processing will start: • October 1, 2016 instead of January 1, 2017 • Colleges encouraged to send out award notices earlier to give students more time to make informed decisions • 2017-2018 FAFSA IRS data retrieval tool will direct families to 2015 IRS tax information • Still problems with Pell Grant and State Grant not being finalized until later in 2017

26. 2017-2018 FAFSA & Prior-Prior Year Tax Data!!!!!! April - June Verification & Awarding 01/01/17 2017-2018 FAFSA Starts 04/15/17 2016 Taxes Due Family Corrects FAFSA 12/31/16 2016 Tax Year Ends Fall 2017 School Starts Feb 2017 Pell Grant Finalized June 2017 State Grant Finalized 10/01/16 2017-2018 FAFSA Starts Fall 2017 School Starts 04/15/16 2015 Taxes Due Nov - June Verification & Awarding 12/31/15 2015 Tax Year Ends Feb 2017 Pell Grant Finalized June 2017 State Grant Finalized #21

27. Sources of Financial Aid

28. Packaging Financial Aid • In general, need-based financial aid cannot exceed cost of attendance (COA) minus EFC • Remaining need after grants and scholarships typically covered by work-study or loans • Some forms of financial aid can replace all or portion of EFC (Unsubsidized Stafford Loan, PLUS Loan, certain private scholarships, etc.)

29. Federal Grants & Scholarships

30. Federal Changes • Limited Ability-to-Benefit reinstated for students lacking high school credential • Students first enrolled in college on/after July 1, 2015, in eligible Career Pathways* program • Must pass federally-approved Ability-to-Benefit test or successfully complete 6 college credits at college attended • Awarded Federal Pell Grant from alternate Pell Grant award table (Maximum award is $4,860, not $5,775) • Otherwise, students need high school credential to qualify for federal financial aid *Integrated adult basic education and postsecondary career programs

31. Federal Pilot ProgramIncarcerated Students • Students incarcerated in federal/state penal institutions not eligible for Federal Pell Grants • Pilot program would allow selected colleges to award Pell Grants to such students to evaluate impact • Students must be: • Incarcerated and due for release within 5 years • Enrolled in program for high-demand occupation from which they are not legally barred from working • Advised of any portion of program that cannot be completed while incarcerated • Proposals from interested colleges were due 10/2/2015

32. Federal Perkins Loan Terminated • Low-interest (5%) federal student loan for neediest students • Just over 10,000 MN residents received $21 million for 2012-2013 academic year • Heaviest volume at 4-year campuses • Had several options for annual loan cancellations (teachers, public service, etc.) • Students who received their first 2015-2016 Perkins disbursement prior to 9/30/15 still eligible this school year • Limited grandfathering (up to 5 years of additional loans) for students who received Perkins Loan before 6/30/2015 and are still enrolled in same college and program

33. State Grants & Scholarships(for MN residents attending college in MN)Check out Handout #10 for Pell & State Grant Look-Up Chart! #10

34. MN Dream Act • Qualifying undocumented students eligible for: • In-state tuition rates at MnSCU and U of M • State financial aid programs • State Grant, Child Care Grant, Work Study (if DACA), SELF Loan • Private scholarships administered by MnSCU/UM • To meet MN Dream Act requirements: • Attend MN high school for at least 3 years • Graduate from a MN high school or earn MN GED • Comply with Selective Service requirements • Males 18 to 25 years old must register • Apply for lawful immigration status once a federal process for doing so exists (not yet applicable) #15

35. MN Dream Act Online State Financial Aid Application • Cannot apply using FAFSA • Link to online MN Dream Act state financial aid application and instructions posted on: • www.ohe.state.mn.us/MNDreamAct • OHE created its own MN Dream Act application • Modeled after FAFSA on the Web • Available: • January 1, 2016 for 2016-2017 (using 2015 tax year) • October 1, 2016 for 2017-2018 (using 2015 tax year) • English and Spanish • Easier for students to understand • Must be completed in one sitting • Please get the word out to your undocumented students! • Contact: Ginny.Dodds@state.mn.us or (651) 355-0610

36. MnSCU Two-Year Occupational Scholarship Program • Administered by Office of Higher Education • Selection, awarding may take place on campus • Pilot program for 2016-17 and 2017-18 school years • For students enrolled in occupational programs in high-demand fields • Emphasis on getting recent high school graduates through short-term vocational programs and into employment $3.9 Million

37. MnSCU Two-Year Occupational Scholarship Program Eligible Student: • Enroll in qualifying vocational program for fall term immediately following: • High school graduation • Completing ABE or passing GED • Completing Americorp • Meet MN resident definition used for state financial aid • Includes Dream Act applicants • Adjusted gross income • e ≤ $90,000 • Agree to participate in free mentoring services #14

38. MnSCU Two-Year Occupational Scholarship Program Conditions for Renewal: • Successfully completed 30+ college credits first academic year • Making satisfactory academic progress (includes 2.5 GPA) • Participated in free mentoring services • College certifies student is on track for program completion during 2017-2018 school year

39. MnSCU Two-Year Occupational Scholarship Program • Scholarship Award = “Last Dollar In” Tuition & Fees - Federal Pell Grant* - MN State Grant = Occupational Scholarship • Lowest income students may not qualify, since Pell and State Grants typically cover tuition and fees • Applicants will be ranked based on application date • May require separate application beyond 2016-2017 FAFSA • Further instructions and training announcements will be sent to high schools as they are developed • Check www.ohe.state.mn.us for updates *Pell Grant amount not subtracted for ineligible students e.g., MN Dream Act

40. Institutional Scholarships • Many of these listed in central location on OHE website: • http://www.ohe.state.mn.us/sPages/scholarshipsAll.cfm • Tend to have early deadlines • Average scholarship per first-time, full-time undergraduate for 2012-2013

41. Private Scholarships • Student should check with local businesses, civic organizations, parents’ employers • Most high schools compile lists of local scholarships • Free internet search sites: www.collegeboard.com/pay www.scholarshipamerica.org www.fastweb.com www.studentscholarshipsearch.com www.gocollege.com www.scholarshiphelp.org • Students should be sure to report any private scholarships to the financial aid office

42. Federal and State Work Study • Undergraduate or graduate students are eligible • Employment may be on or off campus – resume builder! • May work during summer • Wages won’t count against student’s future financial aid eligibility on FAFSA • Respond ‘Yes’ to Work Study question on FAFSA • Contact financial aid office for further information

43. Student Loan Programs Student Loan Programs #12 • Loan comparison chart covers main features of all federal and state student loan programs • New Perkins Loans no longer available • Reverse side displays various loan repayment options for federal student loans • General Rule of Thumb: • Don’t borrow more than expected first year salary in field • Monthly payment will typically be around 1% of total student loan debt • $300 for $30,000 debt

44. Tuition Reciprocity • Allows MN residents to attend in neighboring states at rate similar to MN resident rate • Students need to apply (some assume it’s automatic) • Apply directly to ND or SD college if recent MN high school graduate • Apply directly to colleges in Manitoba • All other students must submit application to Office of Higher Education in MN • Apply on-line for 2016-2017 after March 1, 2016 at: • www.getreadyforcollege.org • Reduced rates for MN residents attending select schools in Illinois, Indiana, Kansas, Michigan, Missouri, Nebraska under Midwestern Student Exchange Program (MSEP)

45. Federal Higher EducationTax Advantages American Opportunity Tax Credit Lifetime Learning Tax Credit Tuition and Fees Deduction Penalty Free IRA Withdrawals Coverdell Education Savings Account Student Loan Interest Deduction See Publication 970 at: www.irs.govfor details Also, handout in packet #16

46. Helpful Resources • College financial aid administrator knows best!! http://www.ohe.state.mn.us/sPages/finAidInsts.cfm • Questions on federal aid programs and application process (800) 433-3243 • www.studentaid.ed.gov • Office of Higher Education financial aid staff (651) 642-0567 or (800) 657-3866 • www.getreadyforcollege.org

47. Student PublicationsOffice of Higher Education • Former Paying for College now split into 4 shorter publications • Ordering instructions in right side of packet • (Financial Aid Basics available in Spanish later this fall) • Ordering instructions in right side of packet

48. MAFAA Help for High Schools! • For financial aid night help (e.g. speakers) • www.mafaa.org/public/public.php • Please consider making your financial aid night a College Goal event! • College Goal volunteers will help you! • See MAFAA and College Goal handouts in right side of packet

49. FAFSA Completion Initiative !!! • Unfortunately, FAFSA Completion software did not function on OHE’s web platform for 2015-2016 • OHE working on a solution before 2016-2017 FAFSA season • MN high schools, districts and other organizations providing direct service to students can: • Sign data sharing agreement • Get username and password to access system • Get FAFSA completion data for students • Aggregate numbers by high school • Individual student data showing • If student has submitted FAFSA • Whether FAFSA is complete, lacks signatures or has other unresolved problems

50. FAFSA Completion Initiative !!! • Data sharing agreement posted at: • http://www.ohe.state.mn.us/mPg.cfm?pageID=2148 • If you already submitted agreement to OHE, you do NOT need to resubmit • MN OHE will contact all high schools, districts and organizations when 2016-2017 system is operational (early spring 2016) • Training will be provided via webinar Let’s see if we can get all our seniors to apply! You’re on!