The Application Process and Student Eligibility

 Free Application for Federal Student Aid (FAFSA) is central element of federal student aid application process  FAFSA data are used to:  Compute the expected family contribution (EFC)  Confirm certain student eligibility criteria via database matches with federal agencies

 Required by some states and institutions to determine eligibility for state and institutional aid programs  Cannot be required to determine Title IV eligibility, except when:  Verifying FAFSA data  Resolving conflicting information

 Explain how to apply for Title IV aid  Identify and describe various methods students may use to apply for financial aid  Practice completion of FAFSA on the Web Worksheet

 Explain how FAFSA data are processed by Central Processing System (CPS)  Identify and describe types of FAFSA processing output  Review how to:  Make changes to applicant data  Override student dependency status

There are multiple versions of the FAFSA:  The paper FAFSA  FAFSA on the Web (FOTW)  FAA Access to CPS Online  FAFSA on the Phone

Students and parents can obtain paper FAFSA by:  Calling Federal Student Aid Information Center (FSAIC) at FED.AID (or )  Downloading PDF version

 Students   Institutions 

FAFSA is a 10-page booklet containing:  Four instructional pages for assistance in completing form  Six application pages  Dependent students complete yellow and purple sections, and  Independent students (and their spouses, if applicable) complete only yellow sections

FAFSA may be filed electronically via:  FOTW  FAA Access to CPS Online

 Available in English and Spanish  Real-time FAFSA submission and updates  Ability to electronically sign using a Federal Student Aid (FSA) Personal Identification Number (PIN)  Seven-step organization  Instructions and “help text” for certain questions  Skip-logic allowing student and/or parent to skip unnecessary questions

 Built-in edits check for errors prior to submission  Ability to check application status on-line  Printable FOTW Worksheet assists in collecting necessary application information

To use:  School must register with U.S. Department of Education (ED)  Financial aid administrator must have user ID and password

Both parent and student may apply for FSA PIN which may be used as:  Personal identifier to access personal information on various FSA electronic systems  Electronic signature to sign FOTW  May obtain FSA PIN before or after completing FOTW

 First-time PIN applicants and students requesting duplicate PIN or changing PIN can receive their PIN in “real time”  Applicants can create their own PIN identifier when they apply or have PIN assigned but there is usually a 3 day wait before it is active

 FOTP provides applicants with assistance from customer service representative in completing FAFSA  Alternative for FAFSA applicants; not intended to replace FOTW  Intended for applicants who have limited or no Internet access, and who are facing pressing deadlines

Dependent applicants unable to provide parental information due to a special family circumstance may use FAFSA on the Web to bypass the parent questions

 Process enables students and parents to transfer tax return information from IRS website directly to FOTW application  IRS Data Retrieval also available for corrections

 Reminder to answer all applicable questions accurately  Instructions on listing colleges to receive FAFSA  Instructions on completing the preparer’s section, if applicable  Instructions on reviewing application data on- line  Instructions on signing the FAFSA

Three methods to sign application:  Electronically using FSA PIN;  Sign printed copy of signature page; or  Sign rejected Student Aid Report (SAR)

 Application must be dated and signed by:  Student and one parent if student is dependent; or  Student if student is independent  Signing application: Certifies accuracy of data, acknowledges ED authority to verify information reported with other federal agencies, agrees to provide any information requested, certifies identity, acknowledges consequences of false information, and agrees to certain application certification statements

If the student and/or parent has a FSA PIN, he or she may sign application electronically after completing application or after submitting it for processing

Student and parent (if dependent) may also sign application by:  Printing, signing, and mailing FOTW signature page to CPS; or  Signing rejected SAR and returning it to CPS address on SAR

Students must meet several general eligibility requirements  Some requirements are student related  Others relate to the program of study

Criteria categories: 1.Checked via application process 2.Checked and monitored by school 3.Not specifically checked, but must be resolved if conflicting information exists

 Database match between Central Processing System (CPS) and Department of Homeland Security (DHS) to confirm eligible noncitizen status  If primary verification confirms eligible noncitizen status, no further proof is required

 CPS submits automated DHS secondary confirmation request to DHS if primary verification failed and an Alien Registration Number was provided on the Free Application for Federal Student Aid (FAFSA)  Automated secondary confirmation usually is completed within 3 days

School must initiate if:  Eligible noncitizen status not confirmed via automated DHS secondary confirmation;  Results of automated secondary confirmation not received after at least 5, but not >15 business days of receiving the Institutional Student Information Record (ISIR);  School has conflicting information; or  School believes student information is incorrect

Three types of Social Security Administration (SSA) database matches:  Student’s Social Security Number (SSN)  Parent’s SSN  Date of death

Student and parent PLUS borrower must:  Not be in default on a Title IV loan  Not owe a Title IV overpayment  Not have exceeded Title IV loan limits  Have fully repaid any fraudulently obtained Title IV funds

 Two sets of student eligibility requirements apply  Different means used to determine whether student meets the requirements  Department of Justice database match  Question 23 on 2011 – 12 FAFSA

School may not admit as a regular student persons who:  Do not have high school diploma or its recognized equivalent; and  Are below the age of compulsory attendance in the state in which school is located

To be eligible, short-term program must:  Admit as regular students some persons who have not completed equivalent of associate degree  Have completion and placement rates of at least 70%  Not be more than 50% longer than minimum training program required for specified occupation  Have been in existence for at least 1 year

 Student and parent, if applicable, must sign before school transmits  Signature page must be maintained in accordance with record retention requirements

 Social Security Administration (SSA):  Social Security Number (SSN)  Master Death File  U.S. citizenship  Department of Homeland Security (DHS):  Eligible noncitizen status  Selective Service System:  Registration with Selective Service

 National Student Loan Data System (NSLDS) for Title IV funds:  Loan defaults  Exceeds loan limits  Any unpaid fraudulently obtained funds  Repayments

 Department of Defense:  Identify eligible students for increased aid due to parent or guardian death as a result of U.S. military service in Iraq or Afghanistan after 9/11/2001 Department of Veterans Affairs (VA): Verification of veteran status

Department of Justice Hold File:  Title IV suspension or termination due to drug conviction

 Official EFC: Calculated using CPS edits and database matches  If eligible for Simplified Needs Test (SNT), CPS calculates primary and secondary EFCs if asset data provided  Primary EFC - assets excluded  Secondary EFC - assets included

Processed application output sent to:  Student in form of SAR (paper or electronic)  School in form of Institutional Student Information Record (ISIR)  Student’s state agency in form of ISIR

 Summarizes information reported on application (paper or electronic)  Provides processing results including:  EFC  Messages related to database matches  Verification selection  Eligibility for Title IV aid

 Student output depends on whether the student provided address  CPS sends student:  Notification of SAR Processing, if address is provided;  Paper SAR, if paper FAFSA and no address; or  Paper SAR Acknowledgement, if electronic application and no address

 notifying student that FAFSA processing results are available on-line  Contains link to student’s SAR on the Web  If returned as undeliverable, paper SAR or SAR Acknowledgement is sent

Paper SAR enables students to readily determine:  Status of their FAFSA (complete or incomplete)  Eligibility or ineligibility for Federal Pell Grant  Next steps in the application process

SAR Acknowledgement is sent to student whose application data was electronically submitted and no address provided  Includes EFC  Establishes student’s Title IV eligibility  Cannot be used to make changes

Used by school to:  Document Title IV eligibility  Correct or update applicant data  Perform professional judgment (PJ) adjustments, including dependency overrides

 Corrections: Changes to incorrect data  Updates: Changes required for some data items that change after FAFSA was filed  Adjustments: Changes to applicant data by financial aid administrator using PJ  Dependency override: Adjustment of student’s status from dependent to independent by FAA

 Adding a school to CPS record is considered a correction  Student can add schools by:  Using FAFSA on the Web and FSA PIN;  Calling Federal Student Aid Information Center at and providing Data Release Number (DRN); or  Submitting correction on paper SAR

 Schools can add Federal School Code to CPS record using FAA Access to CPS Online and student’s DRN  Must add its own code no later than 30 days after school receives SAR on which it is not listed

 Students with a FSA PIN can electronically make and sign corrections  FSA PIN or signature of dependent’s parent required only if change is made to parental data

Schools may make corrections to application data using FAA Access to CPS Online if:  Student identifies necessary changes  Schools identify necessary changes or corrections through verification process or resolution of conflicting information

 Must collect documentation signed by student and parent (if dependent) before making corrections  All corrections made are in “real time”  Except adding school codes  Takes about 48 hours to receive correction once it is made

 Student or parent must follow SAR instructions  SAR must be signed by:  Student  Parent, if dependent

 Household size, if selected for verification  Number in college, if selected for verification  Dependency status, whenever change occurs, whether or not selected for verification, except updating not permitted for:  Change in student’s marital status  Previously originated Direct Loan

 Made only by financial aid administrator  May be made using FAA Access to CPS Online  Financial aid administrator can perform dependency overrides on paper FAFSA  Student’s and/or parent’s signature not required if documentation used as basis of the adjustment is signed

Student may be considered independent if unusual circumstances exist  Decision must be made and documented on case- by-case basis  Can override dependency status on initial paper application or after initial application is filed

 Student responds to dependency questions correctly but completes only student sections of paper FAFSA  FAA performs override by:  Completing “School Use Only” box on paper FAFSA; or  Using FAA Access to CPS Online

 Override performed using FAA Access to CPS Online  May reverse or cancel override if:  CPS has a transaction on which the student was processed as dependent for the award year  Dependency override was performed after the application as a dependent student was submitted

 Schools may award Title IV aid using an output document with dependency override determination made by previous school within same award year without collecting documentation  Practice is optional

Debbie Nelson Denise Welch LeTourneau University Panola College