© nasfaa 2006 applying for financial aid 2007-2008

© NASFAA 2006

Applying for Financial Aid

2007-2008

© NASFAA 2006

Sponsored by:

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Thanks to our Massachusetts Partners

American Student Assistance (ASA)Bank of America Citizens BankThe College BoardThe Lumina Foundation for EducationMassachusetts Association of Student Financial Aid Administrators (MASFAA)Massachusetts Educational Financing Authority (MEFA)Nellie MaeThe Education Resources Institute (TERI)

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What Will You Learn Today?

Sources and types of financial aid

Required financial aid application forms

How to complete the Free Application for Federal Student Aid (FAFSA)

Information about any additional aid in your state

Answers to your individual questions

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Federal government

State government

Colleges and universities

Private agencies, companies, foundations, and your parents’ employers

Sources of Financial Aid

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Types of Aid

Gift Aid – Grants or scholarships that do not need to be repaid

Work – Money you earn as payment for a job on or off campus

Loans – Borrowed money to be paid back, usually with interest

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State Aid

Almost all 50 states have some form of special grant or loan aid for their state residents.

Some states use the data you provide on the (FAFSA) to award aid; Other states may require you to submit supplemental forms.

Your school counselor should have the correct form for your state’s application. If the forms are not available at your school, contact your state higher education agency directly.

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Eligibility for State Aid

File the FAFSA by May 1st

Must be a permanent legal resident of Massachusetts

Enrolled in a full-time, degree program

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2007-2008 State Aid Application Requirements

By May 1st complete and submit:– The Free Application for Federal Student Aid

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Need-Based Grants

Federal Grants

Pell Grants

– $4,050 maximum per year

Academic Competitiveness Grants (ACG)

-- $750

Federal Supplemental Educational Opportunity Grant (FSEOG)

– $4,000 maximum per year

Administrator

In the script, changed "they are a U.S. citizen" to "they are U.S. citizens" under discussion of ACG.

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Types of ApplicationsFAFSA

Other applications or forms as required by the college such as:

– 2006 federal tax returns (along with schedules and W-2s) or other income documentation

– CSS Financial Aid PROFILE

– Institutional Scholarship and/or Financial Aid Application

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FAFSA Information & Tips

File as soon as possible after January 1, 2007

Use estimated 2006 income information if taxes are not complete at time of FAFSA submission

You and at least one parent whose information is reported must complete and sign the FAFSA

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Federal PIN

PIN (Personal Identification Number) serves as the electronic signature on ED documents

You and at least one parent need PIN to sign the FAFSA electronically

May be used to:– Check on FAFSA status– Verify and correct FAFSA data– Add additional schools to receive FAFSA data– Change home and e-mail addresses

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Federal PIN

If an e-mail address is provided, PIN will be e-mailed to the PIN applicant within hours

Apply for your PIN TODAY at:

www.pin.ed.gov

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Getting Ready

Before starting the FAFSA, gather your:

– Driver’s license, if you have one

– Alien Registration Card, if you are an eligible non-citizen

Create a file for copies of all financial aid documents submitted.

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Getting ReadyBefore starting the FAFSA, gather:– Student and Parent

Social Security cards2006 W-2 Forms and other records of money earned2006 federal income tax form (even if not completed)Records of untaxed incomeCurrent bank statementsBusiness, farm and other real estate recordsRecords of stocks, bonds and other investments

Create a file for copies of all financial aid documents submitted

Administrator

Script tells you to keep a copy of the completed FAFSA. This only applies if you file a paper FAFSA, so I added this language. Sorry, it wouldn't let me change the font color in the script.

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Getting Started

Read all application instructions

If planning to submit the paper FAFSA:

– Use pen with black ink

– Print clearly in CAPITAL letters:

– Fill in ovals completely:

– Do not leave blanks (unless directed by instructions)

– Do not write comments or notes anywhere on form

– Do not use correction fluid

1 5 E L M S T

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The FAFSAA Seven-Step ProcessThe FAFSAA Seven-Step Process

Step One – is about the student

Step Two – asks for student income and assets

Step Three – determines student dependency status

Step Four – requires parental information for

dependent students

Step Five – is for independent students only

Step Six – allows the student to list up to four schools

Step Seven – Certification Statement asks for signatures

and submission date of the FAFSA

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4 5 6 7 8 9

List your name and Social Security Number exactly as they appear on the Social

Security card (both will be compared through a database match process)

#8 Social Security Number

S U S A N J O N E S L

#1-3 Name

PAGE 7 – Step One

1 2 3

#9 Date of Birth

Be careful not to write the current year foryour date of birth

8 7 0 2 0 9

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Fill in the your e-mail address that will be valid at least until the student starts college

#13 E-mail Address

PAGE 7 – Step One

S J O N E S Y A H O O . C O M

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#14 Citizenship Status

PAGE 7 – Step One

a. If U.S. citizen, status will be confirmed by Social Security match

b. If eligible non-citizen, status will be confirmed by Department of Homeland Security (DHS) match. This includes:

• U.S. permanent residents with I-551 Form• Conditional permanent residents with I-551C Form• Eligible non-citizens with I-94 Form

c. If neither A nor B, you are ineligible for federal/state aid, but might still be eligible for state or institutional funds

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If eligible non-citizen, write in your eight- or nine-digit Alien Registration Number (ARN)

• Precede an eight digit ARN with a zero

• Copy of Permanent Resident Card might be requested by the financial aid office

#15 Alien Registration Number

PAGE 7 – Step One

0 1 2 3 4 5 6 7 8

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PAGE 7 – Step One

c. If neither a nor b, you are ineligible for federal or state aid, but might still be eligible for a college’s own funds

Administrator

Slide 21 discusses item #14. Why are we going back to it here?

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PAGE 7 – Step One

NOTE: if you are undocumented or under-documented• start inquiring in elementary, middle or high school to

see if it is possible for younger students to become a permanent resident

• apply for all private scholarships for which you may be eligible

• check with colleges and universities to see if institutional financial aid is available

• watch for changes in federal and state laws regarding the eligibility of undocumented or under-documented students

For more information and a list of scholarships, go towww.maldef.org

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Residency relates to your permanent home state: – if you are dependent, the state of legal residence is

usually the state in which your custodial parent lives

State of legal residence is also used:– in the need calculation to determine the appropriate

allowance for state and other taxes paid by that state’s residents

– to determine eligibility for state grants

#18-20 Student’s State of Legal Residence

PAGE 7 – Step One

M A

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Male students who are 18 years of age or older must be registered with Selective Service to receive federal and state aid

#21-22 Selective Service Registration

PAGE 7 – Step One

#22

Answer “yes” only if the student is male, aged 18-25, and has not yet registered. The student may also register by going to:

www.sss.gov

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Indicate your most immediate degree or certificate objective for 2007-2008

#23 Degree Objective

PAGE 7 – Step One

1

#24 Grade Level

Indicate your grade level beginning with the 2007-2008 school year

0

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Provide information about the college you are most likely to attend

– If in doubt, report “Full-time”

#25 Expected Enrollment Status for 2007-2008

PAGE 7 – Step One

1

#26 Types of Student Aid

Indicate the other types of aid you are interested in for the 2007-2008 school year, in addition to grants

1

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– Requirement to receive Federal and State Aid– Home schooling or Ability to Benefit test may fulfill

requirement

#27 High School Diploma or GED?

PAGE 7 – Step One

If high school senior, the answer is ‘NO’

#28 First Bachelor’s Degree?

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#29-30 Parents’ Educational Level

PAGE 7 – Step One

Indicate highest level of schooling completed by biological or adoptive parents (for state award purposes only)

– Use birth parents or adoptive parents - not stepparents or foster parents

– This definition of parents is unique to these two questions

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DO NOT SKIP THIS QUESTIONYou should:

– Answer “NO” if:• Conviction was for alcohol or tobacco• Conviction was removed from record or occurred

before age 18 (unless tried as an adult)

– Answer “YES” if you have been convicted of possessing or selling illegal drugs while enrolled and receiving federal student aid

#31 Drug Conviction Question

PAGE 7 – Step One

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#32-45Questions are identical to those we will cover in the parents’ income and asset section of Step Four. In Step Two:

– Report your 2006 income and current assets– If you are single, ignore references to “spouse” – If you are married, report spouse’s

income and assets– Complete Worksheets A, B, and C

for the student on Page 5

Step TwoStudent Income and Asset Information

PAGE 8 – Step Two

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– If you are eligible for veterans’ education benefits, report monthly amount expected

– Number of months should equal number of months you will attend school

– If not applicable, answer zero

For more information, contact the VA at:

(800) 827-1000

www.va.gov

#46-47 Student Veterans’ Education Benefits

PAGE 8 – Step Two

0 0

0

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Step Three

PAGE 8 – Step Three

#48-55 Determination of Dependency Status

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#48-55 Determination of Dependency Status

PAGE 8 – Step Three

If you answered “no” to all questions in this step, go to Step Four. For FAFSA filing purposes, you are considered a dependent student and are required to provide parental information

If you answered “yes” to any question in this step, skip Step Four and go to Step Five. For FAFSA filing purposes, you are considered an independent student

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Step FourParent Information

See Notes on page 3 of FAFSA instructions about who is considered a parent

– Biological or adoptive parent(s)

– Stepparent

• Regardless of any prenuptial agreements

PAGE 9 – Step Four

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Step FourParent Information


Do not provide information about:– Foster parent(s)

• You are automatically considered an independent student if you are a ward of the court

– Legal guardian(s) or grandparent or other relative

• Must attempt to get biological parental information if guardianship ends at age 18

• Colleges may use Professional Judgment to allow you to file as an independent student

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#56 Parents’ Marital Status as of Today


#57 Month and year parents were married, separated, divorced, or widowed

M M Y Y Y Y

Administrator

Changed text in script from "as of the day they are completing the FAFSA" to "as of the day the student is completing the FAFSA".

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NOTE: This information should be provided for the parents who are required to give information for Step Four

#58-65 Father’s and Mother’s SSN, LastName, First Initial, and Dates of Birth


2 3 4 5 6 7 8 9 0 J O N E S

0 0 0 0 0 0 0 0 0 P A R K E R

P

M

5 9 0 5 0 3

6 0 0 7 1 9

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Include in parents’ household:• the student applying for financial aid• the custodial parent(s)• parents’ other dependent children, if parents

provide more than half their support or the children could answer “no” to every question in Step Three, regardless of where they live

• other people, if they now live with the parents, and if the parents provide more than half their support, and will continue to provide that level of support from 7/1/07 through 6/30/08

#66 Parent Household Information


0 5

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– Always include the student even if he/she will attend college less than half-time in 2007-2008

– Include other household members from #66 only if they will attend at least half time in 2007-2008 in a program that leads to a college degree or certificate

– Always exclude parents

NOTE: Some financial aid offices will require proofthat other family members are attending

college

#67 Family Members Attending College


2

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– Question #68: Indicate the two-digit state code for your parents’ permanent address

– If the answer to #69 is “no,” in Question #70, enter the month and year residency began for the parent who has been a legal resident of that state the longest

#68-70 Parents’ State of Legal Residence


M A M YYM Y Y

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Step FourParent Income and Asset Information

– If the answer to any question is zero or the question does not apply, enter 0:

– Report whole dollar figures:

– Recommendation: If parents have not filed their 2006 federal tax return, use W-2 forms and/or other employment records to estimate total income


,$ 0

1 2 $ 3 5 6 (no cents),

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#71-75 Parents’ Household Federal Benefits


Indicate if you, your parents, or anyone in your parents’ household received benefits from any of the federal programs listed during 2006.

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#76 – Indicate your parents’ tax filing status for 2006

#77 – Which tax return did or will your parent(s) file for 2006?

#78 – Even if your parent(s) did not file a 1040A or 1040EZ, read the instructions to see if they would have been eligible to do so

#76-78 Parent Tax Return Filing Status for 2006


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– If your parents have not yet filed their 2006 federal tax return information, it is okay to estimate information for these questions

– If your parents have completed their 2006 federal tax return, use 2006 tax return information to fill out Questions #79-81. Pay attention to specific line-items

Reminder: If the answer is zero or the question does not apply, enter 0

#79-81 Parent Income and Tax Information


4 5 2 5 0

2 1 3 0

0 5

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This figure is often different than the adjusted gross income figure on your parents’ tax return. Use W-2 forms and other records to list all income in 2006 earned from work (including income earned from self-employment)

#82-83 Money Earned from Work by Parent(s)


4 0 5 0 0

1 3 2 0 0

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#84 Worksheet A: Untaxed Income & Benefits

To answer, carefully complete the right column of Worksheet A (Page 5 of instructions).

NOTE: Students should keep a copy of the worksheet because the financial aid office may request a copy

1 2 5 0

1 2 5 0


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#85 Worksheet B: Untaxed Income & Benefits

1 7 0 0

6 2 0 0

5 0 0

8 4 0 0


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0


#86 Worksheet C: Exclusions to Income

1 2 5 0

8 4 0 0

0

Totals from Worksheets A, B, and C should be entered in Questions 84, 85, and 86 on Page 9 of the FAFSA

Administrator

The worksheets are first presented in the student sections of the FAFSA and we don't review them in detail. Why do we review them in detail for the parents, which is presented AFTER the student's questions?

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#87-89– List the net value of parent assets as of

the day the FAFSA is completed

– If net worth is one million dollars or more, enter

– If net worth is zero, enter 0 (do not leave blank)

Step FourParent Asset Information


,$ 9 9 9 9 9 9

,$ 0

NOTE: Some financial aid offices may request supporting documentation for the answers to these questions

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Report the current balance of cash, checking and/or savings accounts as of the day you complete the FAFSA

#87 Parent Asset Information


2 1 5 5

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Investments include:

• real estate (other than your parents’ home)

• trust funds

• UGMA and UTMA accounts

• money market and mutual funds

• certificates of deposit

• stocks and stock options



5 0 0 0

0

7 9 0 0

• bonds and other securities

• Coverdell IRAs

• 529 plans owned by your parents

• installment and land sale contracts

• commodities, etc.

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5 0 0 0

0

7 9 0 0

Business/Investment Farm includes:

– market value of land, buildings, machinery, equipment, and inventory. Debt means only those debts for which the business was used as collateral

NOTE: DO NOT include the home you live in, the value of life insurance and your parents’ retirement plans (pension funds, annuities, non-education IRAs, Keogh plans, etc)

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#90 Household Information

Step Five (Independent Students)

PAGE 10 – Step Five

Complete this step only if you answered “yes” to any question in Step Three (Questions 48-55)

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#90 Household Information

Include in your household:

• you (and your spouse if married)

• your children, if you will provide more than half their support

• other people, if they now live with you and you provide more than half their support, and will continue to provide that level of support from 7/1/07 through 6/30/08


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#91 Family Members Attending College

– Count yourself even if you will attend college less than half-time in 2007-2008

– Include others counted in #90 only if they will attend at least half-time in 2007-2008 in a program that leads to a college degree or certificate

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#92-96 Household Federal Benefits


Indicate if you, your spouse, or anyone in your household received benefits from any of the federal programs listed during 2006.

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0 0 1 1 1 7 P A INDEPENDENT UNIVERSITY

COMMUNITY COLLEGE ABC

STATE UNIVERSITY

UNIVERSITY IN ARIZONA

M A

L A

A Z

0 1 2 3 4 5

0 2 3 4 5 6

0 3 4 5 6 7

Step Six:

PAGE 10 – Step Six

#97 School Information

Administrator

Spelled out SAR Information Acknowledgement in the script.Also in the script, changed "Department" to "Department of Education" in several places.In the script, I believe they can receive a paper SAR, a link to an electronic SAR, or a SAR Acknowledgement.

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List up to four schools to which you are applying

For faster and more accurate processing, write in both the Title IV school code and the school name

Check with each college’s financial aid office, the student’s high school counselor, or the U.S. Department of Education’s website (www.fafsa.ed.gov) for a listing of federal school codes of the colleges to which the student is applying

Select the housing plan that best describes the type of housing you expect to live in while attending each listed school

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In Question #97, list those schools with the earliest financial aid deadlines

If you are applying to more than six schools, wait for the processed Student Aid Report (SAR) or add additional schools via the Web

Strategies for Listing Colleges



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Read the statement in Step Seven before submitting the FAFSA

Fill in the date you completed the FAFSA

You and at least one parent must sign the FAFSA – If submitting FAFSA on the Web, you and your

parent must provide your individual PINs

Be cautious about paying someone to complete the FAFSA

You can do it!

#98-99 Read, Sign, and Date

PAGE 10 – Step Seven

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FAFSA on the Web

Complete the FAFSA on the Web at www.fafsa.ed.gov

Processed more quickly than paper version

Sophisticated on-line edits so that errors are less likely to be made

Student and at least one custodial parent should get a federal PIN at

www.pin.ed.gov

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Application Filing TipsFAFSA on The Web

Gather necessary documents ahead of time

Complete a FAFSA on the Web Worksheet available at www.fafsa.ed.gov

Allow ample time to complete form for submission by deadline

Check the FAFSA for accuracy prior to submission

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Application Filing TipsFAFSA on The Web

Save all work periodically

Sign the application using you and your parent’s PIN

Print out a copy of the FAFSA before submitting data

Keep a copy of the Submission Confirmation Page

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File early and meet all deadlines

Check the FAFSA for completeness and accuracy

Sign and date FAFSA

Make a copy of the FAFSA before mailing

Mail the FAFSA in the self-addressed envelope provided in the application booklet– Do not write any comments on the FAFSA– Do not include letters, tax forms, or worksheets– Use regular mail (not Registered or Certified)

Obtain a U.S. Postal Service Certificate of Mailing (cost is only $0.90)

Application Filing TipsPaper FAFSA

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Student Aid Report (SAR)

Regardless of whether you use FAFSA on the Web or submits a paper FAFSA, a SAR will be sent to you – A link to an electronic SAR will be sent if

you provide an e-mail address

– A paper SAR will be mailed if you do not provide an email address

Data will be sent to each college or university you listed in Question #97

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What Happens Next?

You and the colleges you listed receive information from federal processor

You should review your SAR for important information and accuracy of data

Colleges match admission records with

financial aid applications and determine aid eligibility

Colleges mail notices of financial aid

eligibility to admitted students who have completed all required financial aid forms

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Special Circumstances

Contact the Financial Aid Office if there is:– Loss or reduction in parent or student income or

assets– Death or serious illness– Unusual medical or dental expenses not

covered by insurance– Reduction in child support, Social Security

benefits or other untaxed benefit– Financial responsibility for elderly grandparents– Any other unusual circumstances that affect a

family’s ability to contribute to higher education

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Summary of the Financial Aid Process

Submit all required forms, including FAFSA, by each college’s published deadlines

Submit the FAFSA before May 1st for MassGrant consideration

Keep a copy of all forms submitted

Review your SAR

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Summary of the Financial Aid Process

Watch for financial aid award notifications from colleges to which the student has been admitted

Be sure to apply for financial aid this year and every year as soon as possible after January 1 to receive the best financial aid award possible

ASK QUESTIONS!

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Resources

www.CollegeGoalSundayUSA.org, Program Support, FAFSA Line-by-Line Presentation– FAFSA – Web version– FAFSA – Paper version– FAFSA – Paper version in Spanish and Somali– Foster Youth: Tips for Completing the FAFSA

© nasfaa 2006 applying for financial aid 2007-2008

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