Update from the World of Financial Aid LIKE US ON FACEBOOK: FAME Education for weekly scholarship and financial aid information

FAFSA Changes The 2017–18 FAFSA became available Oct. 1, 2016 Change to October 1 availability is permanent Earlier Year of Income Information Required For 2017-2018 FAFSA, 2015 income information required

Positive Impact of the Changes Easier to file the FAFSA IRS Data Retrieval Tool (DRT) worked much better! FSA ID challenges still exist, but more time to resolve.

Impact on the Numbers Overall filing is down when measuring by “days into the cycle.” 2016-2017 FAFSA filings as of 3/29 (89 days into the cycle) – distinct students = 37,481 2017-2018 FAFSA filings as of 12/28 (89 days into the cycle) – distinct students = 21, 740

Impact on Filers Fewer “invalid” FAFSAs (as of 12/28) 2016-2017 FAFSA filing cycle – 6,414 2017-2018 FAFSA filing cycle – 2,150 No significant change in % of students who are State of Maine Grant eligible For both years, about 57% of the students who have filed have EFCs below 5,000 (prior to verification).

Impact on High School Seniors High school senior filing rate is about the same currently as mid-February of last year. Approximately 43% of high school seniors have filed. FAME’s FAFSA Portal Information now available to high schools that have a signed Data Use Agreement. Goal is to make FAFSA completion information available to other organizations next year. Relatively easy to match high school seniors, but not as easy to match other populations.

Impact on Returning Students Our guess, based on the data we do have, is that filing is down with returning students. Most Maine schools didn’t change their deadlines. We aren’t aware of many schools “marketing” the change FAME didn’t change the deadline for State of Maine Grant. We “think” we will have a bump shortly after January 1 (not everyone knows about the change). Talk about review of deadlines USM and COA seem to be the only one with a change except for the Bates, Bowdoin, Colby, and COA who pushed back their FAFSA filing date to match Profile filing date. Not all websites have been updated, so weary of even quoting deadlines.

Impact on Deadlines Changing Deadlines: Priority Filing Deadlines USM – file by January 15 so FAFSA will be received by USM by February 1. College of the Atlantic – file by February 1. MMA – file as soon as possible Verification Deadlines (to maintain priority consideration) USM – March 1 UMaine – April 15 Talk about review of deadlines USM and COA seem to be the only one with a change except for the Bates, Bowdoin, Colby, and COA who pushed back their FAFSA filing date to match Profile filing date. Not all websites have been updated, so weary of even quoting deadlines.

Conflicting Information 2015 income information is being used for both 2016-2017 and 2017-2018. Conflicting information must be resolved. Best way to avoid conflicting information is to use the IRS DRT for both years. Print off a copy of the Student Aid Report (SAR) to ensure that other income information matches. Describe where to find the SAR Comment Code 399

Conflicting Information Updates from FSA regarding conflicting information: 3% of filers have needed to take action to resolve conflict. Only selected if information doesn’t match, the difference between the two EFCs is significant, and the conflict impacts Pell. If no significant change to EFC, schools don’t need to resolve. No selection if dependency status has changed. Institutions can make corrections independently if IRS DRT was used. Families are getting warning in real time about conflicts. Concern that families will begin using their 2016 tax information in January/February and cause more conflicts. Describe where to find the SAR

Verification Verification If IRS DRT was used, very unlikely that student will be selected for verification. But, not everyone has to file taxes and those who don’t can’t use the IRS DRT. New requirement for those all nontax filers selected for verification. The IRS Verification of Non-filing (VONF) Letter will be required anytime a student, parent, or spouse nontax filer is subject to verification (V1 or V5).

Verification Verification of Non-filing Letter Requirement is for any individual who is subject to verification and who did not file taxes, regardless of the amount of income (even zero). For example, if a dependent student is selected for verification and the student and both parents on the FAFSA did not file taxes, then the student and both parents will each need to provide an IRS Verification of Non-filing Letter. That will be three non-filing letters to complete verification.

Verification Nontax Filers Verification Requirements All of the following will be required for each nontax filer who is subject to verification: A signed statement certifying that the individual has not filed and is not required to file a 2015 income tax return and listing the sources and amounts of 2015 income earned from work; A copy of IRS Form W–2 for each source of 2015 employment income received (or an equivalent document such as the Wage and Income Transcript); and IRS Verification of Non-filing Letter dated on or after October 1, 2016.

Verification Obtaining a Verification of Non-filing Letter Go to IRS.gov and use the IRS Get Transcript Online functionality. To use the Online functionality and meet the authentication process requirement, the user must have: Access to a valid email address; A text-enabled mobile phone in the user’s name (pay as you go phones cannot be used); and Specific financial account numbers (such as a credit card number or an account number for a home mortgage or auto loan).

Verification Obtaining a Verification of Non-filing Letter If unable to use the Get Transcript Online tool (which includes many dependent students and low-income parents and students), must request letter using IRS Form 4506-T. This form is not available through online Get Transcript by Mail or through the automated phone request process.

Verification NASFAA Letter to U.S. ED Requests that ED waive the Verification of Non-filing Letter requirement for non-tax filers who are selected for verification if the applicant does not meet the registration requirements for the IRS Get Transcript Online functionality. Instead, allow a self-certification statement of ineligibility for IRS Get Transcript Online registration and non-tax filing status to suffice.

Appeals Appeals Expect that the number of appeals will increase. Contact school to determine the process and timing for appeals. Do they have a specific form to complete? Will they do the initial award and then the appeal? UMaine – “No appeals for students who file after March 1 or submit verification documents after April 15.”

Anticipated FSA ID Changes Planned changes for the FSA ID: Add a SMS/text message for forgotten usernames and passwords. No 30 minute waiting period – the delay will only apply if using the challenge question. Black Box outlines to make fields more visible Remove 13 or older question Significant date question will be optional ED will have new videos and additional FAQs on the help page.

Questions? Finance Authority of Maine 5 Community Drive P.O. Box 949 Augusta, ME 04332 1-800-228-3734 TTY: 207-626-2717 education@FAMEmaine.com FAMEmaine.com