Free Application for Federal Student Aid

1
Session 32

• Free Application for Federal Student Aid
• Thomas Threlkeld
• Anita O. Wojick

2
Topics

• FAFSA Overview
• What is the FAFSA?
• Why we must complete it?
• How to Apply
• Paper FAFSA
• FAFSA on the Web
• FAA Access to CPS Online
• Seven Step Process

• HERA Changes
• Drug Conviction Eligibility
• Qualified Tuition Benefits
• Family Owned Business
• Active Military Duty
• FAFSA Exercise
• Other Interest Sessions and Training
• Questions

3
FAFSA Overview

• FAFSA collects applicant information required by
  statute and is sent to the Central Processing
  System (CPS) which
• Calculates a familys Expected Family
  Contribution (EFC), or its ability to pay for the
  cost of attendance (COA) at an eligible
  postsecondary institution and
• Performs data matches against other federal
  databases to determine the applicants
  eligibility
• Social Security Administration Dept. of
  Homeland Security
• Selective Service NSLDS
• Veterans Administration

4
FAFSA on the Web
FAFSA.ed.gov
5
Federal Student Aid PIN Web site
6
FAA Access to CPS Online
http//www.fafsa.ed.gov/FOTWWebApp/faa/faa.jsp
7
FAFSA on the Web and FAA Access to CPS Online
Demo Site

• The 2006-2007 CPS Web Applications Demo System
  offers demonstration versions of FAFSA on the Web
  (FOTW) and FAA Access to CPS Online.
• Staff can learn about FOTW and FAA Access to CPS
  Online, including the new Return of Title IV
  Funds on the Web.
• Test student IDs and PINs are available for
  preloaded renewal application and correction
  records for both the FOTW and FAA Access demos.

Username eddemoPassword fafsatest
http//fafsademo.test.ed.gov
8
Seven Step Process

1. General Student Information
2. Student/Spouse Income and Assets
3. Student Dependency Status
4. Parent Information (dependent students only)
5. Household Size and Number in College (independent
   students only)
6. School Information
7. Signature Requirements

9
Drug Conviction Eligibility

• Question 31
• An applicant loses eligibility for Title IV aid
  only if the drug related offense for which he or
  she was convicted occurred while the student was
  receiving Title IV aid.
• Date of ineligibility still begins on date of
  conviction

Effective July 1, 2006 for the 2006-2007 Award
Year
10
Qualified Education Benefits

• Questions 44 and 88
• Qualified Education Benefits now include
• Coverdell education savings accounts and 529
  prepaid tuition and 529 savings plans
• Value is equal to refund value of any credits or
  certificates purchased
• Prepaid tuition plans from a state
• Value is equal to current balance of the account

11
Qualified Education Benefits

• Benefit is reported as an asset of the parent of
  a dependent student
• Only if the parent is the owner of the account or
  plan
• Not considered an asset of a dependent student
• Considered asset of an independent student if
  that student owns the plan

12
Family Ownership of Small Business

• Questions 45 and 89
• Exclude from assets in need analysis any part of
  a family owned and controlled business with no
  more than 100 FT employees or FTEs

13
Active Duty Military Now Independent Students

• Question 54
• HERA adds the following individuals to those that
  are considered independent
• Serving on Active Duty in the Armed Forces for
  other than Training Purposes
• National Guard or Reserves called to Active Duty
• For other than training purposes, and
• Activated by Presidential Order Authority

Effective July 1, 2006 for the 2006-2007 Award
Year
14
EXERCISEFAFSA QUESTIONS
15
Other Resources

• 2006-07 FSA Handbook, Application and
  Verification Guide (AVG)
• Dear Colleague Letters and Electronic
  Announcements on IFAP (Information for Financial
  Aid Professionals)
• For more information related to the changes
  created by Higher Education Reconciliation Act
  (HERA)
• Interim Final Regulations resulting from the HERA
  published August 10, 2006 and Final Regulations
  published November 1, 2006

16
Additional Interest Sessions

• Session 10 General Provisions Update  Changes
  made by the HERA
• Session 12 Use Self-Assessments and Evaluation
• Session 14 Working with Veterans Affairs to help
  Students
• Session 24  FAFSA Simplification - What does
  that mean and how do we get there?
• Session 28 FAA Access to CPS Online (hands on)

17
Additional Beginner Sessions

• Session 33 - Expected Family Contributions (EFC)
• Session 34 - The Institutional Student
  Information Record (ISIR)
• Session 35 - Awarding Aid
• Session 36 - Disbursing Aid

18
Additional Beginner Sessions

• Session 37 - IFAP, NSLDS, COD, FAA Accessto CPS
  Online
• Session 38 - Financial Aid Professionals (FAP)
  Portal and Beyond - How We Communicate With You?
• Session 39 - Uncover the Mysteries of How a Law
  Becomes Operational

19
Additional Training

• HERA
• There are changes to how institutions determine
  the cost of attendance, changes to elements of
  the need analysis formula, to student
  eligibility, program eligibility, institutional
  eligibility, and the return of Title IV funds
  calculation. Many of these changes take effect
  with the 2006-07 award year.
• Check FSA Training Website for dates and
  locations of training

http//www.ed.gov/offices/OSFAP/training/index.htm
l
20
Contacts

• We appreciate your feedback and comments.
• We can be reached at

Anita.Wojick_at_ed.gov Phone [phone]
Thomas.Threlkeld_at_ed.gov Phone [phone]