FILLING OUT THE FAFSA: WHAT IF IT DOESN’T FIT?

Presented by Cristi Millard

AGENDA

Introduction Income questions Family situations Wrap-Up

WHY IS IT SO HARD TO COMPLETE THE FAFSA?

Situations in flux Traditional family definition does not

apply Income was received, but not through

regular channels No mailing address Student doesn’t really have a clue!

INCOME PROBLEMS

Received both foreign and US income

Paid under the table, but received more than $9,500 in income

Filed as married, but is common law

Others?

US AND FOREIGN INCOME

When a student or parent has returns from both a foreign nation and the United States for the same tax year, they should use the data from the U.S. return when filling out the FAFSA.

PAID UNDER THE TABLE

May be required to file if income was over certain thresh hold

Financial aid should not be awarded if tax return was not filed

We are not the tax police – really?

MARRIED, BUT NOT?

State of Utah does not recognize common law marriages

To be considered married, couple must declare relationship in front of a judge

May be required to refile

DISCUSSION

This is the point where audience participation is not just encouraged, but required!

FAMILY QUESTIONS

Different types of families Polygamous Same sex Divorced students or parents Student claiming siblings Commune Group marriage

POLYGAMOUS FAMILY

Is the student’s mother the first wife?

How many children should be counted?

How is the income counted?

What if all the families live in the same house – do you count all the wives and children?

QUESTIONS TO CONSIDER

Are the parents legally married? What income should be reported if the

parents are not legally married? What children should be counted in the

family size? If the student claims a sibling on his/her

taxes, is that student really independent?

SAME SEX COUPLES

2010 Census reports almost 1% of couples report as same-sex

Increase of 51% from the 200 census

Can they file as married?

DEFENSE OF MARRIAGE

According to the Defense of Marriage Act (1996), “…the word ‘marriage’ means only a legal union between one man and one woman as husband and wife, and the word ‘spouse’ refers only to a person of the opposite sex who is a husband or a wife.” Therefore, same-sex unions are not considered marriages for federal purposes, including the FAFSA.

QUESTIONS TO CONSIDER

Do you care if the student is in a same-sex marriage? How would you know?

Can the student file as married? If the student cannot file as married, how is the

income reported? Can you do a special consideration to allow the

student to claim the spouse as a dependent? If the student cannot file as married, how would legal

dependents be reported? How does the dependent student report marital

status of parents? How is income reported?

DIVORCED STUDENTS OR PARENTS

Divorced, but living in the same house

Joint physical and legal custody – 50% and 50%

One parent moves out and the other parent moves in

Separated for an extended period of time

QUESTIONS TO CONSIDER

Which parent’s income is used? Would assets be viewed any differently? If there are siblings, who is included in

family size?

OTHER SITUATIONS

Student claiming siblings to be independent

Commune Group marriages Others? Discussion time!

WRAP-UP

It is our responsibility to help the student fill out the FAFSA using the most accurate information available. Sometimes this will require creative thinking on our part, along with tact and diplomacy when explaining these requirements to students and their parents.

PRESENTER INFORMATION

Cristi Millard, Director of Financial Aid Salt Lake Community College

801-957-4145 cristi.easton@slcc.edu