Free Application for Federal Student Aid

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					Session #31

    Free Application for
    Federal Student Aid

       Angela Smith
       Bob Tschinkel
What is the FAFSA?
 • Department of Education’s free
   application for Title IV aid
   –Collects applicant information
     required by statute
   –Processed by Department’s Central
     Processing System (CPS)
 • All students must complete unless
   parent PLUS is only aid requested
Central Processing System
  • Processes the FAFSA for use in
    determining student eligibility
    –Edits data for errors
    –Calculates expected family
      contribution (EFC)
    –Sends output documents
       •Paper or electronic output to
       •Electronic file to schools
  • Matches student information with other
      Social Security Administration
      Department of Homeland Security
      Selective Service
      Department of Veterans Affairs
      Department of Justice
      National Student Loan Data System
Methods For Filing FAFSA
  • Paper application
  • FAFSA on the Web
  • Renewal FAFSA on the Web
  • FAA Access to CPS on-line
     Must have completed and signed
      copy of paper FAFSA
           FAFSA Instructions

           Available online at
FOTW Worksheet
 • Recommended for applicants using
   FAFSA on the Web (FOTW)
 • Paper worksheet that follows web
   version of FAFSA
 • FAFSA Worksheets A, B, C are
   included in FOTW Worksheet
CPS Web Applications Demo
   – User ID – eddemo
   – Password - fafsatest

 • Demos both FAFSA on the Web and FAA
   Access to CPS on-line
 • Ideal for new staff, demonstrations, or
 • Demo student information is preloaded
FAFSA Sections
 1. General Student Information
 2. Student/Spouse Income and Assets
 3. Student Dependency Status
 4. Parent Information (dependent
    student only)
 5. Household Size and Number in
    College (independent student only)
 6. School Information
 7. Signature Requirements
 • Income is “base year” – calendar
   year prior to award year
 • Marital status, household size and
   assets are reported as of date of
Social Security Number
 Student enters incorrect SSN
 • Must correct SSN in question # 8.
    – CPS identifier will carry original SSN
    – COD will carry corrected SSN
 • Student enters SSN and first two letters of last
   name that match what’s already in CPS database
    – If SSN entered incorrectly, must file new
    – If SSN entered correctly, must file “correction
       Call 703-284-5666
Student’s Marital Status - #16
  • Marital status at time of application
    remains for entire award year
  • May not change marital status once
    application is filed

    –No change to dependency status
     or household size
Questions 29 & 30
 • Parent’s education level requested
   because some states award aid to
   first generation college students
 • Answers not required for EFC
Question 31 - Drug Conviction
•An applicant loses
eligibility for Title IV
aid if was convicted for
a drug related offense
that occurred while
enrolled and receiving
Title IV aid
   –Date of ineligibility
   begins on date of
Questions 32b & 76b
 • Reported estimated income
   information – tax return not yet filed
 • Estimated information not
   automatically conflicting information
  After April 15 of award year, CPS
   requests that families “correct”
   information to reflect actual tax
Questions 44 & 88
 • Qualified education benefits include
   Coverdell savings accounts, state prepaid
   tuition plans and 529 prepaid and savings
     All are included in assets on FAFSA
     Report as asset of dependent student’s
      parent if parent is owner of the account
      or plan
     Never considered an asset of a
      dependent student
     Report as asset of independent student
      if student/spouse owns the
Family Ownership of Small
 Asset Questions 45 and 89
 • Exclude from assets on FAFSA any
   part of a family owned and
   controlled business with no more
   than 100 FT employees or FTE’s
Dependency Questions
 Step Three
 • 8 criteria set in the law
 • Student must be able to answer
   “yes” to at least one question to be
Dependency Questions
 48. Must be age 24 or older by
     December 31 of award year
 49. Enrolled in a master’s, doctorate,
     or graduate certificate program
 50. Married as of date of application
      Common law marriage in states
       where recognized
      Same-sex marriages are not
       recognized for Title IV purposes
Dependency Questions
 51. Have children for whom provide
     more than 50% support
 52. Have dependents other than
     children and spouse for whom
     provide more than 50% support

 How do you measure 50%?
Dependency Questions
 53. Both parents deceased OR ward of
     court at age 18
 54. Serving on active duty in U.S.
     armed forces for purposes other
     than training
 55. Veteran of U.S. Armed forces
      Served active duty for purpose
       other than training and discharged
       other than dishonorably
      Database match with VA
Who Is A Parent?
 • Biological and adoptive
 • Stepparent currently married to
 • Legal guardians cannot be parents
   on the FAFSA
 • Grandparents cannot be parents on
   the FAFSA unless they have legally
   adopted the student
Questions 55-62
 • Parent’s SSN, Name, and DOB
    Would be used if IRS database
     match begins
    At least one parent’s data must
     match Social Security
     administration database
    Parent without SSN must enter all
     zeroes in SSN field
Federal Means-Tested Benefits
Questions 71-75 & 92-96
• Additional criteria for simplified
  needs test and automatic zero EFC
• Is not conflicting information if
  reports these but does not report
  corresponding income on
  Worksheets A
• Answering these questions will not
  affect receipt of these programs
 • 2007-2008 FSA Handbook,
   Application and Verification Guide
   (AVG), Chapters 1 & 2
 • 2007-2008 FAFSA & instruction
 We appreciate your feedback and
 We can be reached at:
  Angela Smith
  • Phone: (312) 730-1552
  • Email:

  Bob Tschinkel
  • Phone: (646) 428-3757
  • Email:
Please provide any comments
 regarding this training or the
          trainers to:

         Jo Ann Borel
 Title IV Training Supervisor

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