2019-2020 FAFSA Training Presentation - Los Angeles ...

 
2019-2020 FAFSA Training Presentation - Los Angeles ...
2019-2020 FAFSA
 Training Presentation
                      1`
2019-2020 FAFSA Training Presentation - Los Angeles ...
Types	
  of	
  Financial	
  Aid                Sources	
  of	
  Financial	
  Aid

Gi5	
  Aid	
                                    • Federal	
  Government	
  
  • Grants/Scholarships	
  	
                       • Financial	
  Aid	
  	
  
  • Tui2on	
  Waivers	
                             • Educa2on	
  Tax	
  Benefits	
  
  • Educa2on	
  Tax	
  Benefits                  • State	
  Government	
  
Self-­‐Help	
  Aid	
  	
                        • Colleges	
  and	
  Universi2es	
  
  • Student	
  Employment	
  (Work-­‐Study)	
   • Private	
  Founda2ons	
  
  • Student	
  and	
  Parent	
  Loans	
         • Philanthropists	
  
  • Tui2on	
  Installment	
  Plans              • Corpora2ons	
  
                                                • Educa2on	
  Lenders	
  
Other	
  Aid	
                                  • Employers	
  
  • Military	
  Student	
  Aid	
  
  • College	
  Savings	
  Plans	
  
  • Employer-­‐Paid	
  Tui2on	
  Assistance	
  
  • Loan	
  Forgiveness	
  and	
  Loan	
  
       Repayment	
  Assistance	
  Programs
                                                                                             2
How Students Apply for Need-Based Aid

— File	
  the	
  Free	
  Applica;on	
  for	
  Federal	
  Student	
  Aid	
  
   (FAFSA)	
  	
  
   — Get	
  FSA	
  IDs	
  at	
  fsaid.ed.gov	
  to	
  sign	
  the	
  FAFSA	
  electronically	
  	
  
   — File	
  the	
  FAFSA	
  online	
  at	
  fafsa.ed.gov	
  
   — The	
  FAFSA	
  is	
  based	
  on	
  the	
  income	
  and	
  assets	
  of	
  the	
  
      student	
  and	
  parents,	
  as	
  well	
  as	
  household	
  size	
  and	
  
      number	
  of	
  children	
  in	
  college	
  
— File	
  the	
  FAFSA	
  by	
  March	
  2,	
  2019	
  to	
  qualify	
  for	
  the	
  
   Cal	
  Grant	
  

                                                                                                    3
Key Financial Aid Terminology

— The	
  Cost	
  of	
  AOendance	
  (COA)	
  is	
  the	
  “s;cker	
  price”	
  
   including	
  tui;on	
  &	
  fees,	
  room	
  &	
  board,	
  books	
  &	
  supplies,	
  
   transporta;on	
  and	
  misc/personal	
  expenses	
  
— The	
  Expected	
  Family	
  Contribu;on	
  (EFC)	
  is	
  a	
  measure	
  of	
  
   the	
  family’s	
  financial	
  strength,	
  based	
  on	
  the	
  FAFSA	
  
                                              	
  
      Formula:	
  COA	
  –	
  EFC	
  =	
  Demonstrated	
  Financial	
  Need	
  
                                              	
  
— Financial	
  aid	
  is	
  based	
  on	
  demonstrated	
  financial	
  need	
  –	
  
   the	
  FAFSA	
  confirma;on	
  page	
  will	
  show	
  the	
  es;mated	
  
   Federal	
  Pell	
  Grant	
  and	
  student	
  loan	
  eligibility	
  
                  Formula:	
  COA	
  –	
  Gi5	
  Aid	
  =	
  Net	
  Price	
  

                                                                                             4
What’s New in the 2019-20 FAFSA?

— The	
  2019-­‐20	
  FAFSA	
  is	
  based	
  on	
  2017	
  federal	
  income	
  tax	
  returns,	
  using	
  
   income	
  &	
  tax	
  informa;on	
  from	
  the	
  prior-­‐prior	
  year	
  
— Access	
  to	
  the	
  IRS	
  Data	
  Retrieval	
  Tool	
  (IRS	
  DRT)	
  will	
  be	
  available	
  for	
  the	
  
   2019-­‐20	
  FAFSA	
  star;ng	
  October	
  1	
  
    — Data	
  elements	
  transferred	
  from	
  the	
  IRS	
  to	
  the	
  FAFSA	
  will	
  not	
  be	
  visible,	
  for	
  
        privacy	
  and	
  security	
  reasons	
  
— There	
  will	
  be	
  new	
  ques;ons	
  concerning	
  IRA	
  rollovers	
  
— Taxpayers	
  who	
  file	
  as	
  married	
  filing	
  jointly	
  will	
  need	
  to	
  manually	
  enter	
  
   income	
  earned	
  from	
  work	
  even	
  if	
  they	
  use	
  the	
  IRS	
  Data	
  Retrieval	
  Tool	
  
— A	
  version	
  of	
  the	
  FAFSA	
  for	
  smartphones	
  will	
  be	
  available	
  for	
  the	
  first	
  ;me	
  
— The	
  income	
  threshold	
  for	
  automa;c-­‐zero	
  Es;mated	
  Family	
  Contribu;on	
  
   (EFC)	
  remains	
  unchanged	
  at	
  $25,000	
  

                                                                                                                                 5
File the FAFSA ASAP

— FAFSA	
  start	
  date	
  is	
  now	
  on	
  October	
  1	
  
— Students	
  who	
  file	
  the	
  FAFSA	
  in	
  the	
  first	
  three	
  months	
  tend	
  
   to	
  get	
  more	
  than	
  double	
  the	
  grants,	
  on	
  average,	
  of	
  
   students	
  who	
  file	
  the	
  FAFSA	
  later	
  
    — Some	
  colleges	
  have	
  very	
  early	
  deadlines	
  
    — About	
  a	
  dozen	
  states,	
  including	
  California,	
  have	
  October-­‐	
  
       March	
  deadlines	
  (California	
  is	
  March	
  2)	
  
    — Each	
  college	
  has	
  a	
  fixed	
  alloca;on	
  of	
  Federal	
  Supplemental	
  
       Educa;onal	
  Opportunity	
  Grant	
  and	
  Federal	
  Work-­‐Study	
  
       funding	
  
— Do	
  not	
  wait	
  un;l	
  the	
  student	
  is	
  admiOed	
  by	
  a	
  college	
  to	
  file	
  
   the	
  FAFSA	
  

                                                                                                         6
Common FSA ID Problems

— Many	
  problems	
  caused	
  by	
  parents	
  crea;ng	
  a	
  FSA	
  ID	
  for	
  the	
  student	
  or	
  
     vice	
  versa	
  
     — An	
  email	
  address	
  can	
  be	
  used	
  with	
  just	
  one	
  FSA	
  ID	
  
     — Don’t	
  swap	
  the	
  student/parent	
  name,	
  date	
  of	
  birth	
  or	
  Social	
  Security	
  
        Number	
  
     — Student	
  Social	
  Security	
  Number	
  already	
  in	
  use	
  error	
  o5en	
  caused	
  by	
  
        parent	
  crea;ng	
  a	
  FSA	
  ID	
  for	
  the	
  student	
  without	
  telling	
  the	
  student	
  
     — Don’t	
  swap	
  the	
  student	
  and	
  parent	
  FSA	
  IDs	
  when	
  using	
  them	
  
     — FAFSA	
  must	
  be	
  started	
  with	
  the	
  student	
  FSA	
  ID,	
  not	
  the	
  parent	
  FSA	
  ID	
  
—   Parent	
  who	
  signs	
  the	
  form	
  with	
  his/her	
  FSA	
  ID	
  should	
  be	
  Parent	
  1	
  
—   Write	
  down	
  the	
  username,	
  password	
  and	
  answers	
  to	
  challenge	
  ques;ons	
  
—   Don’t	
  confuse	
  the	
  “save	
  key”	
  and	
  the	
  FSA	
  ID	
  
—   Three	
  unsuccessful	
  login	
  aOempts	
  will	
  lock	
  the	
  FSA	
  ID	
  
—   If	
  problems,	
  call	
  1-­‐800-­‐557-­‐7394	
  (TTY	
  1-­‐800-­‐730-­‐8913).	
  	
  

                                                                                                                          7
The FOTW
A Seven-Section Online Form

  Sec;on	
  1	
  – 	
  Student	
  Demographics	
  
  Sec;on	
  2	
  – 	
  School	
  Selec;on	
  
  Sec;on	
  3	
  – 	
  Dependency	
  Status	
  
  Sec;on	
  4	
  – 	
  Parent	
  Demographics	
  
  Sec;on	
  5	
  –	
  Financial	
  Informa;on	
  
  Sec;on	
  6	
  –	
  Sign	
  and	
  Submit	
  
  Sec;on	
  7	
  –	
  Confirma;on	
  
  	
  
                                                     8
Section 1

STUDENT DEMOGRAPHICS
Social Security Administration Database Match:
Name, Social Security Number and Date of Birth

— The	
  name,	
  Social	
  Security	
  Number	
  and	
  date	
  of	
  birth	
  must	
  
     match	
  Social	
  Security	
  Administra;on	
  (SSA)	
  records	
  
—   The	
  name	
  must	
  be	
  the	
  legal	
  name,	
  not	
  a	
  nickname	
  	
  
—   Use	
  first	
  name,	
  not	
  a	
  middle	
  name	
  
—   Some;mes	
  people	
  fail	
  to	
  update	
  SSA	
  with	
  their	
  new	
  
     name	
  a5er	
  a	
  change	
  in	
  marital	
  status	
  
—   FAFSA	
  on	
  the	
  Web	
  asks	
  for	
  last	
  name	
  first,	
  first	
  name	
  last,	
  
     so	
  avoid	
  swapping	
  first	
  and	
  last	
  names	
  
—   Double-­‐check	
  date	
  of	
  birth,	
  especially	
  for	
  swapping	
  of	
  
     month	
  and	
  day	
  or	
  an	
  error	
  in	
  the	
  year	
  of	
  birth	
  

                                                                                                      10
Social Security Numbers

— Compare	
  Social	
  Security	
  Number	
  (SSN)	
  with	
  the	
  number	
  on	
  the	
  
   Social	
  Security	
  card	
  to	
  avoid	
  digit	
  transposi;ons	
  and	
  other	
  typos	
  
— Some;mes	
  parents	
  swap	
  the	
  student’s	
  SSN	
  with	
  the	
  parent’s	
  SSN	
  
   or	
  a	
  sibling’s	
  SSN	
  
— If	
  a	
  student’s	
  parents	
  are	
  undocumented,	
  they	
  should	
  use	
  
   000-­‐00-­‐0000	
  instead	
  of	
  a	
  SSN	
  or	
  Tax	
  ID	
  Number	
  (TIN)	
  
— Students	
  who	
  have	
  work-­‐only	
  SSNs	
  because	
  of	
  the	
  federal	
  
   Deferred	
  Ac;on	
  for	
  Childhood	
  Arrivals	
  (DACA)	
  policy	
  are	
  not	
  
   eligible	
  for	
  federal	
  student	
  aid	
  
    — California	
  DACA	
  students	
  who	
  are	
  AB540	
  eligible	
  should	
  apply	
  for	
  
       state	
  aid	
  using	
  the	
  CA	
  Dream	
  Act	
  Applica;on	
  at	
  dream.csac.ca.gov	
  	
  
— If	
  the	
  FAFSA	
  was	
  filed	
  with	
  the	
  wrong	
  Social	
  Security	
  Number,	
  file	
  
   a	
  new	
  FAFSA	
  with	
  the	
  correct	
  Social	
  Security	
  Number	
  

                                                                                                             11
Student Gender

— Students	
  should	
  answer	
  the	
  ques;on	
  about	
  their	
  
   gender	
  (male,	
  female)	
  based	
  on	
  their	
  gender	
  at	
  birth,	
  
   even	
  if	
  it	
  has	
  subsequently	
  changed	
  
   — Gender	
  at	
  birth	
  is	
  listed	
  on	
  the	
  student’s	
  birth	
  
      cer;ficate	
  
— Gender	
  at	
  birth	
  is	
  used	
  to	
  trigger	
  the	
  Selec;ve	
  
   Service	
  requirements	
  
   — If	
  a	
  student	
  was	
  born	
  male,	
  the	
  student	
  must	
  register	
  
      with	
  Selec;ve	
  Service	
  between	
  ages	
  18	
  and	
  25	
  
      (inclusive)	
  to	
  be	
  eligible	
  for	
  federal	
  and/or	
  state	
  
      student	
  financial	
  aid	
  

                                                                                             12
Email and Postal Addresses

— The	
  email	
  and	
  postal	
  mail	
  addresses	
  and	
  telephone	
  
   numbers	
  provided	
  on	
  the	
  FAFSA	
  must	
  remain	
  good	
  
   at	
  least	
  through	
  the	
  end	
  of	
  the	
  admission	
  and	
  
   financial	
  aid	
  applica;on	
  period	
  
— Do	
  not	
  use	
  the	
  student’s	
  school	
  address	
  as	
  the	
  
   permanent	
  mailing	
  address	
  
— Use	
  00000	
  as	
  the	
  zip	
  code	
  for	
  foreign	
  addresses	
  
— These	
  addresses	
  are	
  used	
  by	
  schools,	
  state	
  agencies	
  
   and	
  the	
  U.S.	
  Department	
  of	
  Educa;on	
  to	
  contact	
  the	
  
   applicant	
  and	
  to	
  confirm	
  FAFSA	
  data	
  

                                                                                    13
State Residency

— In	
  all	
  states,	
  a	
  student	
  who	
  is	
  a	
  U.S.	
  ci;zen	
  or	
  permanent	
  
     resident	
  is	
  considered	
  to	
  be	
  a	
  resident	
  of	
  a	
  state	
  if	
  he	
  or	
  she	
  
     has	
  lived	
  in	
  the	
  state	
  for	
  at	
  least	
  five	
  years	
  
—   Many	
  states	
  base	
  determina;ons	
  of	
  state	
  residency	
  on	
  a	
  
     shorter	
  period	
  of	
  ;me,	
  typically	
  one	
  year	
  prior	
  to	
  enrollment	
  
—   Some	
  states	
  have	
  excep;ons	
  for	
  children	
  of	
  ac;ve	
  duty	
  
     members	
  of	
  the	
  U.S.	
  Armed	
  Forces	
  
—   If	
  the	
  student	
  has	
  resided	
  in	
  the	
  state	
  for	
  less	
  than	
  five	
  
     years,	
  the	
  student	
  will	
  be	
  asked	
  to	
  provide	
  the	
  date	
  he	
  or	
  
     she	
  became	
  a	
  resident	
  of	
  the	
  state	
  
—   If	
  the	
  student	
  is	
  a	
  dependent	
  student,	
  the	
  student’s	
  state	
  of	
  
     legal	
  residence	
  is	
  based	
  on	
  the	
  state	
  in	
  which	
  the	
  custodial	
  
     parents	
  live	
  

                                                                                                                  14
Legal Parents

— Legal	
  parents	
  include	
  biological	
  or	
  adop;ve	
  parents	
  
    — Including	
  same-­‐sex	
  parents	
  
    — Including	
  unmarried	
  parents	
  living	
  together	
  
— Legal	
  parents	
  also	
  include	
  a	
  parent	
  who	
  is	
  listed	
  as	
  a	
  parent	
  on	
  
   the	
  student’s	
  birth	
  cer;ficate	
  
— A	
  stepparent	
  is	
  considered	
  to	
  be	
  a	
  parent	
  only	
  if	
  he	
  or	
  she	
  is	
  
   married	
  to	
  the	
  student’s	
  custodial	
  parent	
  as	
  of	
  the	
  date	
  the	
  
   FAFSA	
  is	
  filed	
  or	
  has	
  adopted	
  the	
  student	
  
— Legal	
  parents	
  do	
  not	
  include	
  guardians	
  or	
  foster	
  parents	
  
    — Students	
  in	
  a	
  court-­‐ordered	
  legal	
  guardianship	
  or	
  foster	
  care	
  are	
  
        considered	
  to	
  be	
  independent	
  students	
  
— Legal	
  parents	
  do	
  not	
  include	
  grandparents,	
  aunts,	
  uncles,	
  
   siblings	
  or	
  cousins	
  unless	
  they	
  have	
  legally	
  adopted	
  the	
  
   student	
  

                                                                                                               15
Marital Status on the FAFSA (1/2)

— Marital	
  status	
  must	
  be	
  reported	
  as	
  of	
  the	
  date	
  the	
  FAFSA	
  
     is	
  filed	
  
—   Do	
  not	
  confuse	
  the	
  ques;on	
  about	
  the	
  student’s	
  marital	
  
     status	
  with	
  the	
  one	
  about	
  the	
  parent’s	
  marital	
  status	
  
—   If	
  the	
  marital	
  status	
  is	
  married	
  or	
  remarried,	
  informa;on	
  
     about	
  the	
  spouse’s	
  income	
  and	
  assets	
  will	
  be	
  required	
  
     even	
  if	
  the	
  marriage	
  occurred	
  a5er	
  the	
  end	
  of	
  the	
  base	
  
     (tax)	
  year	
  and	
  even	
  if	
  there	
  is	
  a	
  prenup;al	
  agreement	
  
—   Legal	
  parents	
  who	
  are	
  unmarried	
  but	
  living	
  together	
  are	
  
     treated	
  as	
  though	
  they	
  are	
  married	
  
—   A	
  separa;on	
  can	
  include	
  an	
  informal	
  separa;on,	
  not	
  just	
  
     a	
  legal	
  separa;on	
  

                                                                                                16
Marital Status on the FAFSA (2/2)

— A	
  couple	
  in	
  a	
  same-­‐sex	
  marriage	
  is	
  considered	
  to	
  be	
  
   married	
  on	
  the	
  FAFSA	
  if	
  they	
  were	
  legally	
  married	
  in	
  a	
  
   state	
  (such	
  as	
  California)	
  or	
  country	
  that	
  permits	
  same-­‐
   sex	
  marriage,	
  regardless	
  of	
  where	
  they	
  now	
  live	
  
   — Civil	
  unions	
  and	
  domes;c	
  partnerships	
  are	
  not	
  legally	
  
      married	
  on	
  the	
  FAFSA	
  
— An	
  individual	
  who	
  is	
  married	
  to	
  a	
  foreign	
  na;onal	
  is	
  
   treated	
  as	
  married	
  on	
  the	
  FAFSA,	
  even	
  if	
  the	
  spouse	
  is	
  
   not	
  a	
  U.S.	
  ci;zen	
  or	
  undocumented	
  

                                                                                              17
Custodial Parent (Divorce/Separation)

— If	
  the	
  student’s	
  parents	
  are	
  divorced	
  or	
  separated,	
  only	
  one	
  parent	
  must	
  
    complete	
  the	
  FAFSA.	
  This	
  parent	
  is	
  called	
  the	
  custodial	
  parent.	
  
— The	
  custodial	
  parent	
  is	
  the	
  parent	
  with	
  whom	
  the	
  student	
  lived	
  the	
  most	
  
    during	
  the	
  12	
  months	
  ending	
  on	
  the	
  date	
  the	
  FAFSA	
  is	
  submiOed	
  
    — If	
  the	
  student	
  lived	
  equally	
  with	
  both	
  parents,	
  the	
  custodial	
  parent	
  is	
  the	
  
       parent	
  who	
  provided	
  more	
  financial	
  support	
  to	
  the	
  student	
  
— Parent	
  marital	
  status	
  refers	
  to	
  the	
  custodial	
  parent’s	
  current	
  marital	
  status	
  	
  
     — If	
  the	
  custodial	
  parent	
  has	
  remarried,	
  the	
  marital	
  status	
  is	
  “Married”	
  and	
  
        not	
  “Divorced	
  or	
  Separated”	
  
— If	
  the	
  custodial	
  parent	
  has	
  remarried,	
  the	
  stepparent’s	
  income	
  and	
  assets	
  must	
  
    be	
  reported	
  on	
  the	
  FAFSA,	
  even	
  if	
  the	
  custodial	
  parent	
  got	
  married	
  a5er	
  the	
  
    end	
  of	
  the	
  tax	
  year	
  and	
  even	
  if	
  there	
  is	
  a	
  prenup;al	
  agreement	
  
— If	
  the	
  custodial	
  parent	
  has	
  died,	
  the	
  stepparent	
  is	
  no	
  longer	
  considered	
  the	
  
    student’s	
  parent,	
  even	
  if	
  the	
  student	
  is	
  s;ll	
  living	
  with	
  the	
  stepparent	
  

                                                                                                                             18
Parent Marital Status on the FAFSA

                                   FAFSA	
  Marital	
  Status	
  If	
     FAFSA	
  Marital	
  Status	
  If	
  
                                   the	
  Parents	
  Live	
               the	
  Parents	
  Do	
  Not	
  Live	
  
Parent	
  Marital	
  Status	
      Together	
                             Together	
  
Divorced	
                         Unmarried	
  and	
  both	
             Divorced	
  or	
  separated	
  
                                   parents	
  live	
  together	
  
Legal	
  Separa;on	
               Unmarried	
  and	
  both	
             Divorced	
  or	
  separated	
  
                                   parents	
  live	
  together	
  
Informal	
  Separa;on	
            Married	
  or	
  remarried	
           Divorced	
  or	
  separated	
  
Never	
  Married	
  (Single)	
     Unmarried	
  and	
  both	
             Never	
  married	
  
                                   parents	
  live	
  together	
  
Married	
  or	
  Remarried	
       Married	
  or	
  remarried	
           Married	
  or	
  remarried	
  

                                                                                                                    19
Changes in Marital Status

— Report	
  marital	
  status	
  as	
  of	
  the	
  date	
  the	
  FAFSA	
  is	
  submiOed	
  
    — Do	
  not	
  an;cipate	
  a	
  future	
  change	
  in	
  marital	
  status	
  
    — A	
  couple	
  who	
  are	
  engaged	
  to	
  be	
  married	
  are	
  not	
  considered	
  to	
  be	
  
       married	
  
    — Do	
  not	
  report	
  marital	
  status	
  as	
  of	
  the	
  end	
  of	
  the	
  base	
  year	
  if	
  it	
  has	
  
       changed	
  since	
  then	
  
— The	
  FAFSA	
  cannot	
  be	
  updated	
  to	
  reflect	
  a	
  mid-­‐year	
  change	
  in	
  
   the	
  student’s	
  marital	
  status	
  except	
  in	
  rare	
  circumstances	
  
— A	
  college	
  financial	
  aid	
  administrator	
  may	
  require	
  the	
  student	
  
   to	
  update	
  his	
  or	
  her	
  marital	
  status	
  “to	
  address	
  an	
  inequity	
  or	
  
   to	
  more	
  accurately	
  reflect	
  the	
  applicant’s	
  ability	
  to	
  pay”	
  
    — Examples	
  include	
  changes	
  in	
  marital	
  status	
  due	
  to	
  death	
  of	
  a	
  
       spouse,	
  divorce	
  or	
  separa;on	
  due	
  to	
  domes;c	
  violence	
  or	
  an	
  
       incarcerated	
  or	
  incapacitated	
  spouse	
  

                                                                                                                                20
Reporting of Alimony on the FAFSA

— The	
  Tax	
  Cuts	
  and	
  Jobs	
  Act	
  of	
  2017	
  changed	
  the	
  
       repor;ng	
  of	
  alimony	
  paid	
  and	
  received	
  effec;ve	
  
       star;ng	
  in	
  2019	
  
       — Alimony	
  paid	
  is	
  no	
  longer	
  deducted	
  from	
  the	
  payer’s	
  
          adjusted	
  gross	
  income	
  (AGI)	
  
       — Alimony	
  received	
  is	
  no	
  longer	
  included	
  in	
  the	
  
          recipient’s	
  AGI	
  
— The	
  impact	
  on	
  the	
  FAFSA	
  is	
  unclear	
  
— The	
  FAFSA	
  may	
  have	
  to	
  add	
  ques;ons	
  for	
  alimony	
  
       paid	
  and	
  alimony	
  received	
  
	
  
                                                                                            21
Common-Law Marriage

— A	
  couple	
  in	
  a	
  common-­‐law	
  marriage	
            Common-­‐Law	
  Marriage	
  States	
  
   is	
  considered	
  to	
  be	
  married	
  on	
  the	
          —   Alabama	
  (if	
  created	
  before	
  1/1/2017)	
  
   FAFSA,	
  even	
  if	
  the	
  couple	
  moves	
  to	
          —   Colorado	
  
   a	
  state	
  that	
  does	
  not	
  recognize	
                —   District	
  of	
  Columbia	
  
                                                                   —   Georgia	
  (if	
  created	
  before	
  1/1/1997)	
  
   common-­‐law	
  marriages	
                                     —   Idaho	
  (if	
  created	
  before	
  1/1/1996)	
  
— To	
  be	
  married	
  under	
  a	
  common-­‐law	
             —   Iowa	
  
   marriage,	
  the	
  couple	
  must	
  	
                        —   Kansas	
  (both	
  age	
  18	
  or	
  older)	
  
     — intend	
  to	
  be	
  married	
  
                                                                   —   Montana	
  
                                                                   —   Ohio	
  (if	
  created	
  before	
  10/10/1991)	
  
     — live	
  together	
  for	
  a	
  significant	
  amount	
  
                                                                   —   Oklahoma	
  (if	
  created	
  before	
  11/1/1998)	
  
        of	
  ;me	
  
                                                                   —   Pennsylvania	
  (if	
  created	
  before	
  1/1/2005)	
  
     — hold	
  themselves	
  out	
  to	
  be	
  married	
         —   Rhode	
  Island	
  
     — have	
  a	
  reputa;on	
  in	
  the	
  community	
         —   South	
  Carolina	
  
        as	
  married	
                                            —   Texas	
  (“informal	
  marriage”)	
  
                                                                   —   Utah	
  (only	
  if	
  validated	
  by	
  	
  	
  court/
— The	
  couple	
  must	
  also	
  have	
  the	
  legal	
  
                                                                        administra;ve	
  order)	
  
    and	
  mental	
  capacity	
  to	
  be	
  married	
  

                                                                                                                                    22
Citizenship Status

— A	
  student	
  who	
  is	
  a	
  U.S.	
  ci;zen	
  or	
  permanent	
  resident	
  is	
  eligible	
  for	
  
   federal	
  and	
  state	
  student	
  aid	
  even	
  if	
  the	
  student’s	
  parents	
  are	
  
   undocumented	
  
— Eligible	
  non-­‐ci;zens	
  include	
  students	
  who:	
  
    — have	
  a	
  status	
  as	
  a	
  refuge,	
  asylum	
  granted,	
  parolee,	
  T	
  visa	
  holder,	
  Cuban-­‐
       Hai;an	
  Entrant,	
  vic;m	
  of	
  human	
  trafficking	
  or	
  BaOered	
  Immigrants-­‐
       Qualified	
  Aliens	
  and	
  their	
  children	
  
    — are	
  residents	
  of	
  the	
  Republic	
  of	
  Palau	
  (PW),	
  the	
  Republic	
  of	
  the	
  Marshall	
  
       Islands	
  (MH),	
  or	
  the	
  Federated	
  States	
  of	
  Micronesia	
  (FM)	
  
    — are	
  Canadian-­‐born	
  Na;ve	
  Americans	
  under	
  the	
  terms	
  of	
  the	
  Jay	
  Treaty	
  	
  
— Students	
  who	
  are	
  eligible	
  non-­‐ci;zens	
  should	
  provide	
  their	
  8	
  or	
  9-­‐
   digit	
  Alien	
  Registra;on	
  Number	
  (ARN),	
  prefixing	
  an	
  8-­‐digit	
  ARN	
  with	
  
   a	
  zero	
  
— The	
  student’s	
  status	
  as	
  a	
  U.S.	
  ci;zen	
  will	
  be	
  confirmed	
  by	
  a	
  database	
  
   match	
  with	
  SSA.	
  	
  Status	
  as	
  eligible	
  non-­‐ci;zen	
  will	
  be	
  confirmed	
  by	
  a	
  
   database	
  match	
  with	
  DHS.	
  

                                                                                                                           23
Grade Level and Degree Objective

— Students	
  who	
  will	
  be	
  enrolled	
  in	
  dual	
  enrollment	
  programs	
  are	
  not	
  eligible	
  for	
  
    federal	
  student	
  aid	
  except	
  at	
  a	
  limited	
  number	
  of	
  experimental	
  sites	
  
— Some	
  forms	
  of	
  financial	
  aid	
  are	
  available	
  only	
  to	
  students	
  who	
  have	
  not	
  yet	
  
    received	
  a	
  Bachelor’s	
  degree.	
  These	
  include	
  the	
  
     — Federal	
  Pell	
  Grant	
  
     — Federal	
  Supplemental	
  Educa;onal	
  Opportunity	
  Grant	
  (FSEOG)	
  
     — Teacher	
  Educa;on	
  Assistance	
  for	
  College	
  and	
  Higher	
  Educa;on	
  (TEACH)	
  Grant	
  	
  
— High	
  school	
  seniors	
  should	
  indicate	
  a	
  grade	
  level	
  of	
  “Never	
  aOended	
  college/1st	
  
    year”	
  even	
  if	
  they	
  have	
  taken	
  college	
  classes	
  while	
  enrolled	
  in	
  high	
  school	
  
— In	
  response	
  to	
  the	
  ques;on	
  about	
  Degree	
  or	
  Cer;ficate	
  Objec;ve,	
  the	
  student	
  
   should	
  choose	
  his	
  or	
  her	
  most	
  immediate	
  degree	
  objec;ve,	
  even	
  if	
  he	
  or	
  she	
  
   intends	
  to	
  seek	
  a	
  more	
  advanced	
  degree	
  later	
  
— In	
  response	
  to	
  the	
  ques;on	
  about	
  a	
  first	
  Bachelor’s	
  degree,	
  students	
  who	
  have	
  
   not	
  yet	
  received	
  a	
  Bachelor’s	
  degree	
  should	
  answer	
  “no”	
  

                                                                                                                            24
Interest in Work-Study

— The	
  purpose	
  of	
  this	
  ques;on	
  is	
  to	
  help	
  colleges	
  with	
  
   their	
  financial	
  aid	
  planning	
  
— Answering	
  “yes”	
  does	
  not	
  guarantee	
  that	
  the	
  
   student	
  will	
  get	
  a	
  work-­‐study	
  job	
  
— Even	
  if	
  the	
  student	
  is	
  offered	
  a	
  work-­‐study	
  job,	
  he	
  or	
  
   she	
  can	
  turn	
  it	
  down	
  later	
  
— Answering	
  “no”	
  will	
  not	
  cause	
  the	
  student	
  to	
  receive	
  
   more	
  grants	
  and	
  scholarships	
  

                                                                                               25
Parent’s Educational Level

— The	
  purpose	
  of	
  this	
  ques;on	
  is	
  to	
  iden;fy	
  students	
  
   who	
  are	
  first	
  in	
  their	
  family	
  to	
  go	
  to	
  college	
  
— The	
  answer	
  should	
  be	
  based	
  on	
  the	
  student’s	
  
   biological	
  or	
  adop;ve	
  parents,	
  not	
  legal	
  guardians,	
  
   stepparents	
  or	
  foster	
  parents	
  
— Since	
  each	
  state	
  or	
  college	
  may	
  have	
  a	
  different	
  
   defini;on	
  of	
  a	
  first-­‐genera;on	
  college	
  student,	
  this	
  
   screening	
  ques;on	
  uses	
  the	
  most	
  general	
  defini;on	
  
— Select	
  “College	
  or	
  beyond”	
  only	
  if	
  the	
  parent	
  has	
  
   received	
  a	
  Bachelor’s	
  degree	
  or	
  a	
  more	
  advanced	
  
   degree,	
  not	
  an	
  Associate’s	
  degree	
  or	
  cer;ficate	
  

                                                                                    26
Drug Conviction

— Students	
  who	
  have	
  been	
  convicted	
  of	
  the	
  sale	
  or	
  
   possession	
  of	
  illegal	
  drugs	
  while	
  receiving	
  federal	
  student	
  
   aid	
  may	
  have	
  their	
  eligibility	
  for	
  federal	
  student	
  financial	
  
   aid	
  suspended	
  for	
  a	
  period	
  of	
  ;me	
  
— Students	
  who	
  have	
  never	
  aOended	
  college	
  since	
  high	
  
   school	
  will	
  not	
  be	
  asked	
  the	
  drug	
  convic;on	
  ques;on	
  
— Answer	
  “no”	
  if	
  the	
  convic;ons	
  
   — have	
  been	
  reversed	
  or	
  set	
  aside	
  
   — did	
  not	
  occur	
  while	
  the	
  student	
  was	
  enrolled	
  in	
  college	
  and	
  
      receiving	
  federal	
  student	
  aid	
  	
  
   — occurred	
  while	
  the	
  student	
  was	
  a	
  minor,	
  if	
  the	
  student	
  was	
  
      not	
  tried	
  as	
  an	
  adult	
  

                                                                                                      27
Case Study

— The	
  student’s	
  parents	
  are	
  divorced,	
  so	
  only	
  one	
  parent	
  
     completes	
  the	
  FAFSA	
  
—   The	
  mother	
  claims	
  the	
  student	
  as	
  an	
  exemp;on	
  on	
  her	
  federal	
  
     income	
  tax	
  return	
  in	
  odd	
  years	
  and	
  the	
  father	
  claims	
  the	
  student	
  
     in	
  even	
  years	
  
—   The	
  student	
  lived	
  with	
  the	
  mother	
  183	
  days	
  and	
  the	
  father	
  182	
  
     days	
  in	
  the	
  last	
  12	
  months,	
  so	
  the	
  mother	
  completes	
  the	
  FAFSA	
  
—   The	
  mother	
  remarries,	
  so	
  the	
  stepparent’s	
  informa;on	
  must	
  be	
  
     reported	
  on	
  the	
  FAFSA	
  
—   The	
  mother	
  dies,	
  so	
  the	
  father	
  must	
  now	
  complete	
  the	
  FAFSA,	
  
     even	
  though	
  the	
  student	
  s;ll	
  lives	
  with	
  the	
  stepparent,	
  because	
  
     the	
  stepparent	
  did	
  not	
  adopt	
  the	
  student	
  

                                                                                                             28
Section 2

SCHOOL SELECTION
Order of Colleges on the FAFSA

— The	
  U.S.	
  Department	
  of	
  Educa;on	
  no	
  longer	
  shares	
  the	
  list	
  of	
  
     colleges	
  on	
  the	
  FAFSA	
  with	
  the	
  colleges	
  
—   The	
  list	
  of	
  colleges	
  is	
  s;ll	
  shared	
  with	
  state	
  grant	
  agencies,	
  
     such	
  as	
  the	
  California	
  Student	
  Aid	
  Commission,	
  so	
  list	
  an	
  in-­‐
     state	
  public	
  college	
  first	
  to	
  be	
  considered	
  for	
  state	
  grants	
  
—   Then	
  list	
  the	
  colleges	
  with	
  the	
  earliest	
  financial	
  aid	
  deadlines	
  
—   Up	
  to	
  10	
  colleges	
  can	
  be	
  listed	
  on	
  the	
  FAFSA	
  at	
  a	
  ;me	
  
—   To	
  list	
  more	
  than	
  10	
  colleges,	
  wait	
  un;l	
  the	
  Student	
  Aid	
  Report	
  
     (SAR)	
  arrives,	
  then	
  login	
  to	
  FAFSA	
  on	
  the	
  Web	
  with	
  the	
  student	
  
     or	
  parent’s	
  FSA	
  ID	
  to	
  delete	
  the	
  colleges	
  and	
  add	
  new	
  colleges	
  
—   When	
  looking	
  for	
  a	
  college’s	
  Federal	
  School	
  Code,	
  be	
  careful	
  
     about	
  colleges	
  with	
  the	
  same	
  name	
  in	
  different	
  states	
  

                                                                                                            30
Section 3

STUDENT DEPENDENCY STATUS
Dependency Status

— Dependent	
  students	
  are	
  required	
  to	
                        Criteria	
  for	
  Independent	
  Student	
  Status	
  
   report	
  parent	
  informa;on	
  on	
  the	
                            —   Age	
  24	
  as	
  of	
  December	
  31	
  of	
  the	
  award	
  year	
  
   FAFSA	
                                                                  —   Married	
  
                                                                            —   Graduate	
  student	
  
— Students	
  who	
  answer	
  “yes”	
  to	
  any	
  of	
  
                                                                            —   Has	
  children	
  who	
  receive	
  more	
  than	
  half	
  their	
  
   the	
  13	
  dependency	
  status	
  ques;ons	
                               support	
  from	
  the	
  student	
  
   are	
  considered	
  to	
  be	
  independent,	
                          —   Has	
  other	
  dependents	
  who	
  live	
  with	
  the	
  
   otherwise	
  they	
  are	
  dependent	
                                       student	
  and	
  receive	
  more	
  than	
  half	
  support	
  
                                                                                 from	
  the	
  student	
  
— A	
  student	
  is	
  considered	
  to	
  be	
  
                                                                            —   Ac;ve	
  duty	
  member	
  of	
  the	
  U.S.	
  Armed	
  Forces	
  
   dependent	
  even	
  if	
                                                     for	
  purposes	
  other	
  than	
  training	
  	
  
    — The	
  student	
  is	
  financially	
  self-­‐sufficient	
              —   Veteran	
  
    — The	
  student	
  does	
  not	
  live	
  with	
  his	
  or	
         —   A5er	
  reaching	
  age	
  13	
  was	
  an	
  orphan,	
  in	
  
       her	
  parents	
  	
                                                      foster	
  care	
  or	
  a	
  ward	
  of	
  the	
  court	
  
    — The	
  student	
  is	
  not	
  claimed	
  as	
  an	
                 —   Court-­‐ordered	
  emancipated	
  minor	
  prior	
  to	
  
       exemp;on	
  on	
  the	
  parent’s	
  federal	
                            reaching	
  the	
  age	
  of	
  majority	
  
       income	
  tax	
  returns	
                                           —   Court-­‐ordered	
  legal	
  guardianship	
  
    — The	
  parents	
  refuse	
  to	
  complete	
  the	
                  —   Unaccompanied	
  youth	
  who	
  is	
  homeless	
  or	
  
       FAFSA,	
  par;cipate	
  in	
  verifica;on,	
  pay	
                        self-­‐suppor;ng	
  and	
  at	
  risk	
  of	
  homelessness	
  
       for	
  college	
  or	
  live	
  in	
  a	
  foreign	
  country	
      —   College	
  FAAs	
  can	
  grant	
  a	
  dependency	
  
                                                                                 override	
  in	
  unusual	
  circumstances	
  

                                                                                                                                                             32
Dependency Override

— If	
  the	
  student’s	
  parents	
  refuse	
  to	
  complete	
  the	
  FAFSA	
  and	
  
   provide	
  financial	
  support	
  to	
  the	
  student,	
  the	
  most	
  the	
  student	
  
   can	
  receive	
  is	
  unsubsidized	
  Federal	
  Stafford	
  loans,	
  unless	
  the	
  
   financial	
  aid	
  administrator	
  performs	
  a	
  dependency	
  override	
  
— Dependency	
  overrides	
  are	
  rare,	
  o5en	
  involving	
  an	
  involuntary	
  
   dissolu;on	
  of	
  the	
  family	
  
— Examples	
  include	
  incarcera;on	
  or	
  ins;tu;onaliza;on	
  of	
  both	
  
   parents,	
  an	
  abusive	
  home	
  environment,	
  abandonment,	
  parent	
  
   whereabouts	
  unknown,	
  death	
  of	
  the	
  custodial	
  parent	
  
— The	
  student	
  will	
  need	
  to	
  provide	
  independent	
  third	
  party	
  
   documenta;on,	
  such	
  as	
  reports	
  from	
  police	
  and	
  the	
  courts,	
  
   leOers	
  from	
  clergy,	
  school	
  counselors,	
  social	
  workers	
  and	
  
   others	
  who	
  are	
  familiar	
  with	
  the	
  student’s	
  situa;on	
  

                                                                                                  33
Case Study

— A	
  student’s	
  parents	
  disown	
  the	
  student	
  because	
  of	
  the	
  
   student’s	
  boyfriend/girlfriend	
  and	
  cut	
  off	
  all	
  ;es	
  to	
  the	
  student	
  
   — Common	
  reasons	
  include	
  the	
  race,	
  religion	
  or	
  sexual	
  orienta;on	
  of	
  
      the	
  boyfriend/girlfriend	
  
   — Some	
  college	
  financial	
  aid	
  administrators	
  will	
  perform	
  a	
  
      dependency	
  override,	
  if	
  the	
  student	
  documents	
  a	
  hos;le	
  home	
  
      environment;	
  some	
  will	
  not	
  
   — Otherwise,	
  the	
  most	
  aid	
  the	
  student	
  can	
  get	
  is	
  unsubsidized	
  
      Federal	
  Stafford	
  loans	
  
— If	
  the	
  student	
  marries	
  his/her	
  boyfriend/girlfriend,	
  the	
  student	
  
   will	
  become	
  independent	
  because	
  of	
  the	
  marriage	
  
   — If	
  the	
  student’s	
  spouse	
  dies,	
  the	
  student	
  reverts	
  to	
  dependent	
  
      student	
  status	
  

                                                                                                         34
Section 4

   PARENT
DEMOGRAPHICS
Household Size

—   Household	
  size	
  is	
  not	
  necessarily	
  the	
  same	
  as	
  the	
  number	
  of	
  exemp;ons	
  claimed	
  on	
  federal	
  
     income	
  tax	
  returns	
  
—   The	
  student	
  should	
  always	
  be	
  included	
  in	
  household	
  size,	
  even	
  if	
  the	
  student	
  does	
  not	
  or	
  will	
  
     not	
  live	
  with	
  his	
  or	
  her	
  parents,	
  along	
  with	
  
      — The	
  student’s	
  spouse	
  (if	
  the	
  student	
  is	
  married)	
  and	
  the	
  student’s	
  children	
  (including	
  stepchildren)	
  and	
  
         other	
  dependents	
  
      — If	
  the	
  student	
  is	
  dependent,	
  the	
  student’s	
  parents	
  (including	
  a	
  stepparent),	
  the	
  parents’	
  other	
  children	
  
         and	
  the	
  parents’	
  other	
  dependents	
  
          — Do	
  not	
  count	
  a	
  parent	
  who	
  is	
  not	
  living	
  in	
  the	
  household	
  due	
  to	
  death,	
  separa;on	
  or	
  divorce	
  

—   To	
  be	
  counted	
  in	
  household	
  size	
  
      — Children,	
  stepchildren	
  and	
  other	
  dependents	
  must	
  receive	
  more	
  than	
  half	
  support	
  from	
  the	
  student/
         parents,	
  as	
  applicable,	
  and	
  con;nue	
  to	
  receive	
  more	
  than	
  half	
  support	
  un;l	
  the	
  end	
  of	
  the	
  award	
  year	
  
      — Children	
  and	
  stepchildren	
  do	
  not	
  need	
  to	
  live	
  with	
  the	
  student/parents,	
  but	
  other	
  dependents	
  must	
  
         live	
  with	
  the	
  student/parents,	
  as	
  applicable	
  
—   Child	
  support	
  paid	
  is	
  reported	
  on	
  the	
  FAFSA	
  if,	
  and	
  only	
  if,	
  the	
  child	
  is	
  not	
  reported	
  in	
  
     household	
  size	
  (i.e.,	
  the	
  parent	
  provides	
  less	
  than	
  half	
  support)	
  

                                                                                                                                                                       36
Number in College

— Increasing	
  the	
  number	
  in	
  college	
  can	
  have	
  a	
  big	
  
   impact	
  on	
  eligibility	
  for	
  need-­‐based	
  financial	
  aid	
  
— The	
  student	
  is	
  always	
  counted	
  in	
  the	
  number	
  in	
  
   college,	
  even	
  if	
  the	
  student	
  will	
  be	
  enrolled	
  less	
  than	
  
   half-­‐;me	
  
— Parents	
  are	
  not	
  counted	
  in	
  the	
  number	
  in	
  college	
  
— Other	
  family	
  members	
  who	
  are	
  included	
  in	
  
   household	
  size	
  may	
  be	
  counted	
  in	
  the	
  number	
  in	
  
   college	
  if	
  they	
  are	
  enrolled	
  at	
  least	
  half-­‐;me	
  in	
  a	
  
   program	
  that	
  leads	
  to	
  a	
  college	
  degree	
  or	
  cer;ficate	
  

                                                                                            37
IRS Data Retrieval Tool

— The	
  IRS	
  Data	
  Retrieval	
  Tool	
            Who	
  can’t	
  use	
  the	
  IRS	
  DRT?	
  
   will	
  transfer	
  income	
  and	
  tax	
           —   Address	
  on	
  FAFSA	
  (FSA	
  ID)	
  does	
  not	
  match	
  
   informa;on	
  from	
  federal	
                           address	
  on	
  federal	
  income	
  tax	
  return	
  
   income	
  tax	
  returns	
  into	
  the	
            —   Tax	
  return	
  filed	
  too	
  recently	
  (<	
  3	
  weeks	
  
                                                             electronic,	
  <	
  11	
  weeks	
  paper)	
  
   FAFSA	
                                              —   Change	
  in	
  marital	
  status	
  since	
  the	
  end	
  of	
  the	
  
— Not	
  only	
  does	
  this	
  simplify	
  the	
          tax	
  year	
  
   FAFSA,	
  but	
  it	
  also	
  reduces	
  the	
      —   Taxpayers	
  who	
  file	
  as	
  Head	
  of	
  Household	
  or	
  
                                                             Married	
  Filing	
  Separately	
  
   likelihood	
  that	
  the	
  FAFSA	
  will	
  
                                                             Parents	
  who	
  file	
  the	
  FAFSA	
  as	
  “Unmarried	
  
   be	
  selected	
  for	
  verifica;on,	
               —
                                                             and	
  both	
  legal	
  parents	
  living	
  together”	
  
   saving	
  ;me	
  and	
  hassle	
                     —   Taxpayers	
  who	
  file	
  a	
  Puerto	
  Rican	
  or	
  foreign	
  
— Most	
  families	
  will	
  have	
  filed	
                income	
  tax	
  return	
  instead	
  of	
  or	
  in	
  addi;on	
  to	
  
                                                             a	
  federal	
  income	
  tax	
  return	
  
   federal	
  income	
  tax	
  returns	
                —   Parents	
  who	
  do	
  not	
  have	
  a	
  Social	
  Security	
  
   before	
  the	
  October	
  1	
  start	
                  Number	
  
   date	
  for	
  the	
  FAFSA	
                        —   Vic;ms	
  of	
  iden;ty	
  the5	
  un;l	
  the	
  problem	
  is	
  
                                                             resolved	
  

                                                                                                                                     38
Recent Changes to IRS Data Retrieval Tool

— The	
  IRS	
  Data	
  Retrieval	
  Tool	
  has	
  new	
  security	
  enhancements	
  that	
  
     encrypt	
  the	
  data	
  transferred	
  from	
  the	
  IRS	
  to	
  the	
  FAFSA	
  
—   The	
  transferred	
  data	
  will	
  not	
  be	
  visible	
  and	
  instead	
  will	
  be	
  marked	
  as	
  
     “Transferred	
  from	
  the	
  IRS”	
  
—   Students	
  and	
  parents	
  will	
  no	
  longer	
  be	
  able	
  to	
  make	
  correc;ons	
  
     directly,	
  but	
  instead	
  will	
  need	
  to	
  ask	
  the	
  college	
  financial	
  aid	
  office	
  to	
  
     make	
  correc;ons	
  
—   If	
  there	
  is	
  an	
  IRA	
  rollover	
  or	
  return	
  of	
  contribu;ons,	
  the	
  FAFSA	
  will	
  ask	
  
     whether	
  it	
  is	
  a	
  rollover	
  or	
  not	
  
—   Taxpayers	
  who	
  file	
  as	
  married	
  filing	
  jointly	
  may	
  need	
  to	
  provide	
  
     informa;on	
  about	
  income	
  earned	
  from	
  work,	
  such	
  as	
  W-­‐2	
  and	
  1099	
  
     forms	
  
—   Taxpayers	
  who	
  filed	
  amended	
  federal	
  income	
  tax	
  returns	
  may	
  now	
  use	
  
     the	
  IRS	
  Data	
  Retrieval	
  Tool,	
  but	
  may	
  have	
  to	
  provide	
  a	
  copy	
  of	
  the	
  
     amended	
  tax	
  return	
  to	
  the	
  college	
  financial	
  aid	
  office	
  

                                                                                                                            39
IRS Tax Transcripts

— Applicants	
  who	
  do	
  not	
  use	
  the	
  IRS	
  Data	
  Retrieval	
  Tool	
  or	
  who	
  change	
  
   a	
  transferred	
  figure	
  will	
  have	
  to	
  get	
  an	
  IRS	
  Tax	
  Return	
  Transcript	
  if	
  
   selected	
  for	
  verifica;on	
  (not	
  an	
  IRS	
  Tax	
  Account	
  Transcript)	
  
— Due	
  to	
  security	
  concerns,	
  taxpayers	
  who	
  get	
  an	
  online	
  transcript	
  will	
  
   need	
  to	
  prove	
  their	
  iden;ty,	
  which	
  can	
  be	
  challenging	
  for	
  some	
  
   taxpayers	
  
     — Cell	
  phone	
  number	
  registered	
  to	
  the	
  taxpayer	
  AND	
  a	
  credit	
  card,	
  auto	
  
        loan	
  or	
  mortgage	
  in	
  taxpayer’s	
  name	
  
— If	
  a	
  married	
  taxpayer	
  files	
  a	
  joint	
  return,	
  only	
  the	
  taxpayer	
  listed	
  first	
  
   can	
  get	
  a	
  tax	
  return	
  transcript	
  using	
  the	
  IRS	
  web	
  site	
  
— If	
  a	
  mailed	
  transcript	
  is	
  ordered	
  online,	
  it	
  is	
  mailed	
  only	
  to	
  the	
  
   address	
  on	
  the	
  tax	
  return	
  
     — If	
  the	
  taxpayer	
  has	
  moved,	
  file	
  a	
  paper	
  IRS	
  Form	
  4506-­‐T,	
  Request	
  for	
  
        Transcript	
  of	
  Tax	
  Return,	
  to	
  send	
  it	
  to	
  a	
  different	
  address	
  

                                                                                                                        40
Type of Tax Return

— This	
  ques;on	
  should	
  be	
  answered	
  based	
  on	
  the	
  type	
  of	
  tax	
  
   return	
  the	
  taxpayer	
  was	
  eligible	
  to	
  file,	
  not	
  the	
  type	
  of	
  return	
  
   actually	
  filed	
  
— Many	
  tax	
  preparers	
  file	
  an	
  IRS	
  Form	
  1040	
  even	
  if	
  their	
  client	
  is	
  
   eligible	
  to	
  file	
  a	
  1040A	
  or	
  1040EZ	
  
— Taxpayer	
  is	
  eligible	
  to	
  file	
  a	
  1040A	
  or	
  1040EZ	
  if	
  
    —   Taxable	
  income	
  is	
  less	
  than	
  $100,000	
  
    —   Does	
  not	
  itemize	
  deduc;ons	
  
    —   No	
  self-­‐employment	
  income	
  from	
  a	
  business	
  or	
  farm	
  
    —   Does	
  not	
  receive	
  or	
  pay	
  alimony	
  
    —   Not	
  required	
  to	
  file	
  Schedule	
  D	
  for	
  capital	
  gains	
  
— If	
  taxpayer	
  filed	
  a	
  1040	
  just	
  to	
  claim	
  the	
  American	
  Opportunity	
  
   Tax	
  Credit	
  or	
  Life;me	
  Learning	
  Tax	
  Credit	
  and	
  was	
  otherwise	
  
   eligible	
  to	
  file	
  a	
  1040A	
  or	
  1040EZ,	
  answer	
  “yes”	
  

                                                                                                             41
Simplified Needs Test and Auto-Zero EFC

— If	
  the	
  parents	
  (if	
  the	
  student	
  is	
  dependent)	
  or	
  student	
  and	
  
     spouse	
  (if	
  the	
  student	
  is	
  independent)	
  sa;sfy	
  income	
  criteria	
  
     and	
  were	
  eligible	
  to	
  file	
  a	
  1040A	
  or	
  1040EZ	
  or	
  not	
  required	
  to	
  
     file	
  a	
  tax	
  return,	
  the	
  applicant	
  may	
  qualify	
  for	
  the	
  simplified	
  
     needs	
  test	
  or	
  auto-­‐zero	
  EFC	
  
—   Simplified	
  needs	
  ignores	
  all	
  assets	
  if	
  income	
  <	
  $50,000	
  
—   Auto-­‐zero	
  EFC	
  sets	
  EFC	
  to	
  0	
  if	
  income	
  ≤	
  $25,000	
  
—   Independent	
  students	
  without	
  dependents	
  other	
  than	
  a	
  
     spouse	
  are	
  not	
  eligible	
  for	
  auto-­‐zero	
  EFC	
  
—   Alterna;ves	
  to	
  tax	
  return	
  requirement	
  
     — Dislocated	
  worker	
  status	
  or	
  displaced	
  homemaker	
  or	
  	
  
     — Anyone	
  in	
  household	
  size	
  received	
  certain	
  means-­‐tested	
  federal	
  
        benefits	
  in	
  the	
  last	
  2	
  calendar	
  years	
  prior	
  to	
  award	
  year	
  (Medicaid,	
  
        SSI,	
  SNAP,	
  TANF,	
  WIC,	
  Free	
  and	
  Reduced	
  Price	
  School	
  Lunch)	
  

                                                                                                                   42
Assets

— Report	
  the	
  net	
  worth	
  of	
  the	
  asset,	
  which	
  is	
  the	
  current	
  market	
  value	
  (as	
  of	
  
   the	
  date	
  the	
  FAFSA	
  is	
  filed)	
  minus	
  any	
  debt	
  that	
  is	
  secured	
  by	
  the	
  asset	
  
— Small	
  businesses	
  are	
  not	
  reported	
  on	
  the	
  FAFSA	
  
     — Must	
  be	
  owned	
  and	
  controlled	
  by	
  the	
  family	
  (>	
  50%)	
  
     — Less	
  than	
  100	
  full-­‐;me	
  or	
  full-­‐;me	
  equivalent	
  employees	
  
— Rental	
  proper;es	
  are	
  usually	
  reported	
  as	
  investments,	
  not	
  businesses	
  
     — To	
  be	
  reported	
  as	
  a	
  business,	
  the	
  real	
  estate	
  must	
  be	
  owned	
  by	
  a	
  formally	
  
        recognized	
  business	
  and	
  provide	
  addi;onal	
  services	
  
     — A	
  hotel	
  is	
  a	
  business,	
  while	
  a	
  ;me	
  share	
  or	
  vaca;on	
  home	
  is	
  an	
  investment	
  
— Qualified	
  re;rement	
  plans	
  and	
  the	
  family’s	
  principle	
  place	
  of	
  residence	
  are	
  
   not	
  reported	
  as	
  investments	
  on	
  the	
  FAFSA	
  
— Cash	
  must	
  be	
  reported	
  as	
  an	
  asset,	
  even	
  if	
  the	
  family	
  intends	
  to	
  use	
  it	
  for	
  a	
  
   future	
  expense	
  

                                                                                                                                   43
Reporting of 529 College Savings Plans

— Assets	
  are	
  usually	
  reported	
  based	
  on	
  who	
  owns	
  the	
  asset,	
  
   as	
  opposed	
  to	
  the	
  beneficiary,	
  with	
  a	
  few	
  excep;ons	
  
— Custodial	
  529	
  plans	
  (owned	
  by	
  a	
  child)	
  and	
  529	
  plans	
  
   owned	
  by	
  the	
  custodial	
  parent	
  are	
  reported	
  as	
  parent	
  
   investments	
  on	
  the	
  FAFSA,	
  but	
  distribu;ons	
  are	
  ignored	
  
   — Parent	
  assets	
  have	
  a	
  small	
  impact	
  on	
  aid	
  eligibility	
  
— All	
  other	
  529	
  plans	
  (e.g.,	
  owned	
  by	
  a	
  grandparent,	
  aunt,	
  
   uncle	
  or	
  non-­‐custodial	
  parent)	
  are	
  not	
  reported	
  as	
  assets	
  
   on	
  the	
  FAFSA,	
  but	
  distribu;ons	
  are	
  treated	
  as	
  untaxed	
  
   income	
  to	
  the	
  student	
  on	
  a	
  subsequent	
  year’s	
  FAFSA	
  
   — Untaxed	
  income	
  has	
  a	
  big	
  impact	
  on	
  aid	
  eligibility	
  

                                                                                             44
Section 5

STUDENT INFORMATION
Why Does the FAFSA Ask …?

— The	
  FAFSA	
  asks	
  for	
  the	
  student’s	
  driver’s	
  license	
  to	
  help	
  
   prevent	
  iden;ty	
  the5	
  
    — The	
  student’s	
  driving	
  record	
  does	
  not	
  affect	
  eligibility	
  for	
  financial	
  
       aid	
  
    — Do	
  not	
  subs;tute	
  a	
  condi;onal	
  use	
  permit	
  or	
  state	
  iden;fica;on	
  
       card	
  number	
  
— The	
  ques;on	
  about	
  current	
  and	
  former	
  foster	
  youth	
  is	
  used	
  to	
  
   send	
  informa;on	
  to	
  them	
  about	
  addi;onal	
  financial	
  aid	
  
   resources	
  that	
  may	
  be	
  available	
  to	
  them	
  	
  
— The	
  purpose	
  of	
  the	
  high	
  school	
  ques;on	
  is	
  to	
  help	
  high	
  schools	
  
   track	
  how	
  many	
  students	
  have	
  filed	
  a	
  FAFSA	
  
— The	
  purpose	
  of	
  the	
  parent	
  educa;on	
  level	
  ques;on	
  is	
  to	
  
   iden;fy	
  students	
  who	
  are	
  first	
  in	
  their	
  family	
  to	
  go	
  to	
  college	
  

                                                                                                             46
Special Circumstances

— Appeal	
  for	
  more	
  aid	
  if	
  the	
         Special	
  Circumstances	
  
                                                            Private	
  K-­‐12	
  tui;on	
  
   family	
  is	
  affected	
  by	
  special	
          —
                                                       —   Unreimbursed	
  medical	
  and	
  dental	
  expenses	
  
   circumstances	
                                     —   Unusually	
  high	
  dependent	
  care	
  costs	
  
                                                       —   Change	
  in	
  student	
  or	
  parent	
  income	
  
— Provide	
  documenta;on	
  of	
                     —   Number	
  of	
  parents	
  genuinely	
  enrolled	
  in	
  college	
  at	
  
   the	
  special	
  circumstances	
                        least	
  half-­‐;me	
  
                                                       —   Homelessness	
  
   and	
  their	
  financial	
  impact	
                —   Income	
  from	
  an	
  involuntary	
  foreclosure	
  or	
  
                                                            bankruptcy	
  liquida;on	
  
— Adjustments	
  are	
  more	
  likely	
              —   Disability-­‐related	
  expenses	
  
   if	
  the	
  circumstances	
  were	
                —   End	
  of	
  child	
  support	
  or	
  Social	
  Security	
  benefits	
  
                                                            Income	
  from	
  a	
  Roth	
  IRA	
  conversion	
  
   beyond	
  the	
  family’s	
  control	
              —
                                                       —   Hardship	
  distribu;ons	
  from	
  re;rement	
  plans	
  
— Families	
  can	
  appeal	
  for	
  more	
          —   Natural	
  disasters	
  (wildfires,	
  wind	
  storms,	
  floods,	
  
                                                            mudslides,	
  tornados,	
  hurricanes)	
  
   aid	
  at	
  any	
  ;me,	
  even	
  in	
  the	
     —   Vola;le	
  income	
  that	
  varies	
  from	
  one	
  year	
  to	
  the	
  next,	
  
   middle	
  of	
  the	
  academic	
  year	
           —
                                                            especially	
  if	
  self-­‐employed	
  
                                                            One-­‐;me	
  events	
  that	
  are	
  not	
  reflec;ve	
  of	
  ability	
  to	
  
                                                            pay	
  during	
  the	
  award	
  year	
  

                                                                                                                                             47
Sources of Free Help with FAFSA

— Federal	
  Student	
  Aid	
  Informa;on	
  Center	
  
   — 1-­‐800-­‐4-­‐FED-­‐AID	
  (1-­‐800-­‐433-­‐3243)	
  or	
  1-­‐334-­‐523-­‐2691	
  
   — If	
  hearing	
  impaired,	
  call	
  TTY	
  1-­‐800-­‐730-­‐8913	
  
   — For	
  FSA	
  ID	
  problems,	
  can	
  also	
  call	
  1-­‐800-­‐557-­‐7394	
  
   — Email	
  FederalStudentAidCustomerService@ed.gov	
  	
  
   — fafsa.gov/help.htm	
  	
  
— California	
  Cash	
  for	
  College	
  at	
  cash4college.csac.ca.gov	
  	
  
— Na;onal	
  College	
  Access	
  Network	
  (NCAN)	
  at	
  
   formyourfuture.org	
  	
  
— studentaid.ed.gov/sa/fafsa/filling-­‐out	
  	
  

                                                                                            48
Los	
  Angeles	
  Community	
  College	
  District	
  

• Serves	
  LAUSD	
  &	
  charter	
               • Apply	
  to	
  LACCD	
  college	
  of	
  
  school	
  gradua2ng	
  seniors	
                  choice	
  
• Provides	
  free	
  full-­‐;me	
                • Apply	
  for	
  FAFSA	
  
  enrollment	
  for	
  first	
  year	
  	
  	
       (Undocumented	
  students	
  can	
  
• Addi2onal	
  supports	
                           apply	
  via	
  California	
  Dream	
  Act	
  
  including	
  priority	
                           or	
  Promise	
  Fee	
  Waiver)	
  
  enrollment,	
  summer	
                         • Complete	
  college’s	
  
  transi2on	
  program,	
                           orienta2on,	
  assessments	
  and	
  
  enrollment	
  in	
  required	
  math	
            educa2onal	
  planning	
  	
  
  &	
  English	
  courses,	
  and	
               • Enroll	
  full-­‐2me	
  for	
  Fall	
  &	
  
  access	
  to	
  success	
  ac2vi2es.	
            Spring	
  
                           www.lacollegepromise.org	
  	
  
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