Helping Families complete the FAFSA for 2009-2010
Sponsored by Massachusetts College Goal Sunday Presented by Julie Shields-Rutyna, MEFA Gail Holt, Mount Holyoke College
gholt@mtholyoke.edu jshields-rutyna@mefa.org
Agenda
FAFSA-How easy is it? Major Issues for Families Common Mistakes Changes for 2009-2010
Questions Implications of the change Issues for your office to consider
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One Hour!
Paperwork Reduction Act of 1995
The time to complete this form is estimate to be one hour, including time to review instructions, search data resources, gather the data needed, and complete and review the information collection
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Prep Work
Obtaining PIN first Key is having what you need in front of you Read the directions Understand them (or have someone to ask). Knowing answers to bigger issues that come up for families
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What to Bring
FAFSA PIN Social Security Number Driver’s license 2008 Federal Tax Return 2008 W-2 Forms or year-end pay stubs 2008 untaxed income records 2008 bank statements 2008 business and investment records Alien registration card
(if not a U.S. citizen)
Bring 2007 if 2008 not available
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Completing the FAFSA
Who completes it?
Parent(s) Student (You the student)
Dependent vs. Independent
Paper or online? When to complete it How to make updates and corrections
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Common Mistakes
Missing signatures Legal name or incorrect social security number Gender-Question 21 Incorrectly reporting a legal dependentQuestions 75 and 76 Misunderstanding the Income Tax fieldQuestions 37 and 87
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Common Mistakes
FAFSA Submission Drug question-Question 23 Marital Status-Questions 16 and 61 Head of Household – error and abuse Assets – rental property ≠ business SSI (supplemental security income) ≠ SSDI (social security disability insurance)
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Change
High School Completion and College Plans
Implications
Questions moved Individual options provided vs. look-up from instructions
Easier to understand Answer more quickly Decrease time to complete??
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TEACH Grant
New Question #32
Implications
Paper FAFSA 2009-2010 FAFSA on the Web (FOTW) in 2008-2009
Student confusion Unrealistic expectations Don’t know = Yes
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Veteran’s Benefits
Change
Implications
Amount eliminated
Requires follow up with school School must collect amount 1 (chapter 30) eligible for subsidized loan
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Worksheet A
Change
Implications
Eliminated for both student and parent No Earned income credit No Additional child tax credit No Welfare benefits No Untaxed Social Security benefits
Less confusing for lowincome families Discrepancy between FM and IM income
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Worksheet B
Changes
Implications
Now included in Step Two and Four Foreign income eliminated Credit for federal tax on special fuels eliminated
Discrepancy between FM and IM income Lower total income
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Worksheet C
Changes
Implications
Taxable combat pay added
Lower total income
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Foster Youth
Change
Implication
Foster care added as qualifier for independent status Age changed from until 18 to any time period age 13 or later
Greater eligibility for independent status Documentation may be needed
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Dependency Status
Changes
Implications
FIVE new questions New comment codes Special circumstances flag on ISIR
Communication of institutional policy Documentation needed? PROFILE will waive parent data if answer Yes as emancipated minor
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Dislocated Worker
Changes
Implications
New question
Eligibility determination for SNT/auto zero test ‘Don’t know’ option will require verification Documentation may be needed
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529 Plans
Changes
Implications
Notes changed
Dependent student owned accounts now being counted in need analysis
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Means Tested Benefits
Changes
Implications
Increased from one to two years
Reduced EFC
Clarified that aid eligibility or benefits would not be reduced
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Parent Data
Changes
Implications
Parent e-mail added
Institutional policy on e-mailing parents
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Dependent Students (with special circumstances)
Changes
Implications
Can now bypass parental info (FOTW) Advised to contact FAO Prescreening questions to limit requests for override (FOTW) Transferability
Ease of processing (??) New Special Circumstances Flag (value = 1) Comment code 295/284 Rejects 2 and 15 Process for approval and communication?
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FSA Communication
Changes
Implications
Email sent if Web application inactivity after 7 and 14 days
Less delay in processing More complete FAFSAs Less inquiries to FAAs
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Auto Zero EFC
Changes
Implications
Income threshold increased from $20,000 to $30,000
Reduced EFC
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Future Possibilities
FAFSA Simplification Limited IRS income verification pilot
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Changes to the Paper 2009-2010 FAFSA
(Impress your friends at your next cocktail party)
Four-year color rotation
Ovals changed to Circles Answer box size decreased slightly Housing plan options changed – Step 6
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Final FAFSA Release
Early December 2008