1. 2016 Annual Statewide Financial Aid Conference for High School Counselors September 20, 2016

2. 2 Early FAFSA Submission Begins! Apply on-line at: www.fafsa.gov 2017-2018 FAFSA now available October 1, 2016 –2017-2018 MN Dream Act application for undocumented students also live on 10/1/2016 Carleton, Macalester, St. Olaf, Gustavus Adolphus (and many east coast colleges) require CSS Profile form in addition to FAFSA –https://profileonline.collegeboard.com

3. 3 FAFSA on the Web (FOTW) www.fafsa.gov Apply Transfer IRS data Reapply Apply for FSA ID Find college codes Check status of FAFSA Make corrections Add additional colleges Print SARs

4. 4 2017-2018 FAFSA Changes Draft in packet Pap er FAFSA colors green and purple Added Medicaid to list of other federal means- tested programs –Question #75 dependent applicant –Question #97 independent applicant Question #29: What will your college grade level be…” Question #53: Link to state child welfare agencies now in instructions –Provided in case applicant needs assistance with determining if s/he was formerly in foster care Can print paper FAFSA from www.fafsa.govwww.fafsa.gov #5

5. 5 2017-2018 FAFSA Prior-Prior Year (PPY) 2017-2018 is first year FAFSA will use income information from prior-prior year –Tax year 2015 instead of 2016 –CSS Profile will also use PPY Should eliminate need to enter estimated tax data on the FAFSA IRS Data Retrieval tool will direct 2017-2018 FAFSA filers to 2015 tax year information –May create confusion for those who submitted 2016-2017 FAFSA with 2015 tax year information –Should not be confusing for high school seniors submitting FAFSA for first time

6. 6 2017-2018 FAFSA Time Period for Questions Only tax-related FAFSA data will be from 2015 NASFAA Handout From tax year 2015: –Type tax return filed –Tax filing status –Tax exemptions –Adjusted gross income –U.S. taxes paid –Wages/income from work –Untaxed income questions #45 a-j; #94 a-I –Additional financial information #44 a-f; #93 a-f #25

7. 7 2017-2018 FAFSA Time Period for Questions Timeframe for remaining questions will not change –As of date FAFSA completed: Student demographic information Student and parents’ marital status Asset information –During period of 2017-2018 school year Household size Number in college –Dates provided in question Dependency status questions #46-58 Receipt of federal means-tested benefits #75-79, #97-101

8. 8 Effects of Prior-Prior Year Potential for more changes in family income between tax year 2015 and 2017-2018 school year –Loss of employment, reductions in income, change in marital status, etc. –Students should contact financial aid office about professional judgment income adjustments Potential for more conflicting information cases if 2015 tax year information reported differently on 2016-2017 and 2017-2018 FAFSAs

9. 9 Effects of Prior-Prior Year Students will see pop-up message in 2017- 2018 FAFSA on the Web if 2015 tax information supplied for 2017-2018 differs from 2016-2017 FAFSA unless: –2016-2017 FAFSA 2015 tax data was marked ‘estimated’ –Student’s dependency status changed for 2017-2018 –Student or parent marital status changed for 2017- 2018 If not addressed by student when submitting 2017- 2018 FAFSA, will have comment on Student Aid Report (SAR) and college will need to resolve conflicting information

10. 10 Effects of Prior-Prior Year FAFSA output received by colleges will not be flagged for conflicting information if: –Difference in 2016-2017 and 2017-2018 EFCs not significant; OR –Student will not be Pell Grant eligible for 2017-2018 (high EFC); OR –Change in dependency status for 2017-2018; OR –Change in student’s or parents’ marital status for 2017- 2018; OR –Professional judgment adjustment performed for either year Best way for returning students to avoid problems is to use IRS data retrieval within FAFSA on the Web for both 2016-2017 and 2017-2018

11. 11 Concerns About Early FAFSA Submission Worries about colleges moving up financial aid deadlines –Would have disparate impact on first- generation college students who tend to apply later in year Early financial aid award notices will most likely be estimates –Final Pell and State Grant award formulas not known until spring (Pell) or summer (State Grant )

12. 12 Timing of Applications Earlier for 4-Year Colleges Corresponds to institutional aid deadlines

13. 13 Timing of Applications Later for Public 2-Yr and For-Profit Corresponds to the start of class

14. 14 Concerns About Early FAFSA Submission Letter to college presidents from U.S. Department of Education (8/8/2016) –Urges them to have students submit FAFSA as soon after October 1, 2016, as possible –Encourages colleges to provide earlier financial aid notification, even if estimated –Asks colleges not to adopt earlier financial aid deadlines for institutional aid May hurt low-income, first-generation college students who normally apply later –Encourages colleges to adjust awarding strategies so that those most in need will have access to funds regardless of application date

15. 15 Early FAFSA Submission Survey by Cegment, Inc. –543 college administrators; 1,031 hs seniors and parents

16. 16 Early FAFSA Submission

17. 17 Early FAFSA Submission Barriers to Earlier Notification

18. 18 Early FAFSA Submission & PPY OHE Survey of Financial Aid Administrators OHE surveyed financial aid administrators in MN to determine plans for accommodating Early FAFSA and use of PPY Income Results in Handout Detailed responses by campus available at: http://www.ohe.state.mn.us/mPg.cfm?pageID=1451 #14

19. 19 Federal Student Aid ID (FSA ID) Required for both student and parent (if dependent) to electronically sign FAFSA –Both will need to have email accounts Is a username and password created by user User also has 5 challenge questions –2 from a list of possible questions –2 created by user –1 with important date (can’t be birth date)

20. 20 Tips for Remembering FSA ID When creating password, click on ‘Show Text’ to make sure password was correctly typed Have student write down all information on FSA ID Worksheet #21

21. 21 Federal Student Aid ID (FSA ID) If user forgets FSA ID username –Will have option to answer challenge questions or receive email with secure code –After successfully answering challenge questions or entering secure code from email, username appears on screen If user forgets FSA ID password –Same steps as above, only user then directed to create new password –If user chose challenge questions, must wait 30 minutes to use new password

22. 22 Items Populated on FOTW from IRS Data Retrieval – Available 10/1/2016 Adjusted gross income U.S. income taxes paid Untaxed IRA distributions, pensions Education credits IRA deductions Tax exempt interest Student’s and parents’ income from work if: –Marital status is other than married –If ‘married’, total income from work from tax form will appear on screen and will need to separated by student or parent for entry into FOTW fields

23. 23 FAFSA on the Web IRS Data Retrieval Who CAN’T use IRS data retrieval: –Married couples who filed separate tax returns –Married couples if one filed as head of household –Student’s legal parents are unmarried and living together –Filed an amended return (must submit tax return transcript and 1040x to school) –Filed Puerto Rican or foreign tax return –Applicants whose marital status changed since January 1 of the processing year

24. 24 FAFSA on the Web IRS Data Retrieval Tips SSN, name, date of birth and address must match those used on tax return –Have a copy of tax return to refer to Trickiest part is street address, due to abbreviations and periods –St. does not match St or Street –3 rd does not match 3 or Third –See where PO box or Apt # is entered on tax form and use that same location on IRS data retrieval screen

25. 25 FAFSA on the Web IRS Data Retrieval If family can’t use IRS Data Retrieval, will need to produce official IRS tax return transcript if selected for verification http://www.irs.gov/Individuals/Get- Transcript –Can order tax return transcript online that will come in the mail Random families will be able to get transcript online in real-time –Or, can order by phone (800) 908-9946 –Allow 5-10 days for mail delivery

26. 26 Criteria for Independent Applicant At least 24 years old by December 31 st of the award year covered by the FAFSA Graduate or professional student Married (does NOT include cultural marriage) Has legal dependents other than a spouse who receive more than one half of their support from the student during school year Any time since turning 13 was/is an orphan, in foster care, or ward of the court On active duty or veteran of the U.S. Armed Forces Emancipated minor or in legal guardianship as determined by a court (by someone other than parent) Unaccompanied homeless youth as documented by: –( high school/district homeless liaison, authorized shelter administrator, financial aid administrator interview)

27. 27 Other FAFSA Handouts for Students Tips for Completing the 2017-2018 FAFSA Completing the FAFSA: Special Guidance Related to Dependency Status and Providing Parental Information Impact of Marital Status on the 2017-2018 FAFSA #7 #6 #24 The Sooner the Better The FAFSA: Why, When and Then What? What You Need to Know About the 2017-2018 FAFSA #8 #23 #11

28. 28 FAFSA Training More detailed FAFSA training for new counselors offered at this workshop following presentation and Q & A Also, FAFSA line-by-line training offered to professionals working with students by –www.minnesotacollegegoal.org

29. 29 FAFSA Results Student notified of FAFSA processing results by: –E-mail notification with link to student’s SAR online if student’s e-mail address provided: FAFSA on the Web (takes 1-2 days if electronically signed with FSA ID; 2 weeks if mailed in signature page) Make sure student adds federal email address to address book to avoid delivery problems FederalStudentAidFAFSA@cpsemail.ed.gov –If student has a FSA ID, can view SAR online at www.fafsa.gov and make corrections Don’t forget to sign corrections!

30. 30 If Selected for Verification Verification items tailored to each student and indicated on SAR/ISIR –Some students may need to verify all items; others not If items limited to data from tax return, verification can be accomplished through IRS data retrieval process alone If verification items include both tax return and other items –Verification worksheet sent by college Families should NOT make FAFSA corrections after verification is completed without checking with financial aid office

31. 31 Professional Judgment Family’s Expected Family Contribution (EFC) is now based on income from two years prior –For 2017-2018 academic year, tax year 2015 Financial aid administrators can use their “professional judgment” to alter data on the FAFSA for special circumstances –e.g. use 2016 or 2017 income rather than 2015 Adjustments are typically performed as corrections by the financial aid office after the original FAFSA is submitted and verified

32. 32 Professional Judgment Common examples include: –Significant change in income from past tax year based on unemployment, underemployment, death, divorce, military service or natural disaster –Unusually high medical expenses –Nursing home expenses –Elementary or secondary school tuition paid –Significant college costs for dependent student’s parent attending college –Dependency override Family should contact financial aid administrator to discuss unusual circumstances 32

33. 33 What is a Dependency Override? Gives financial aid administrator authority to allow otherwise dependent applicant to apply as independent applicant due to unusual circumstances –Parental abuse, abandonment, incarceration, parents in another country, etc. –Not used simply because student lives outside parent household after age 18 or parents object to providing data Must be supported by documentation, preferably by someone outside immediate family Student should contact financial aid office for instructions after submitting FOTW without parental data

34. Sources of Financial Aid 34

35. 35 Packaging Financial Aid In general, need-based financial aid cannot exceed cost of attendance (COA) minus EFC Remaining need after grants and scholarships typically covered by work-study or loans Some forms of financial aid can replace all or portion of EFC (Unsubsidized Stafford Loan, PLUS Loan, SELF Loan, certain private scholarships, etc.)

36. 36 Federal Grants & Scholarships NameApplicationAmountEligibility Pell Grant (2017-18 amounts not yet announced) FAFSA$598 - $5,815 Award does not vary with price of college EFC < $5,235 (Income < $65k for family of 4). Limited to 6 FT years of receipt. FSEOGFAFSAUp to $4,000 Average $700 Low-EFC Pell Grant recipients. Limited funding. TEACH GrantFAFSA + TEACH Agreement (https://teach- ats.ed.gov) $4,000 (slight reductions under sequestration) Not need-based. Becomes loan if 4- year teaching requirement not met.

37. 37 State Grants & Scholarships (for MN residents attending college in MN) Check out Handout #10 for Pell & State Grant Look-Up Chart! NameApplicationAmountEligibility MN State Grant (2017-18 amounts not yet announced) FAFSA no later than 30 th day of term. FOTW links to online state questionnaire. $100 - $11,753 Avg: $1,800 See Higher income ranges than Pell. Varies based on price of college. Limited to 4 years of attendance. MN Indian Scholarship FAFSA + On-line program application. Priority deadline July 1. Up to $4,000 undergrad; $6,000 graduate ¼+ American Indian ancestry. Show need for Pell or State Grant. Postsecondary Child Care Grant FAFSA + Paper program application available at college. $100 - $2,800 per child for FT student. Less if PT. Based on income and household size. Now available for graduate students. MN GI BillFAFSA + On-line program application prior to end of term $1,000 Semester $3,000 Year Cost minus Pell Grant, State Grant, Federal military benefits. Military service requirements. #10

38. 38 MN Dream Act Qualifying undocumented students eligible for: –In-state tuition rates at MnSCU and U of M –State financial aid programs State Grant, Child Care Grant, Work Study (if DACA), SELF Loan –Private scholarships administered by MnSCU/UM To meet MN Dream Act requirements: –Attend MN high school for at least 3 years –Graduate from a MN high school or earn MN GED –Comply with Selective Service requirements Males 18 to 25 years old must register –Apply for lawful immigration status once a federal process for doing so exists (not yet applicable) #15

39. 39 MN Dream Act Application Cannot apply using FAFSA Link to online MN Dream Act state financial aid application and instructions posted on: –www.ohe.state.mn.us/MNDreamAct OHE created its own MN Dream Act application –Modeled after FAFSA on the Web –Available: January 1, 2016 for 2016-2017 (using 2015 tax year) October 1, 2016 for 2017-2018 (using 2015 tax year) –English and Spanish –Easier for students to understand –Must be completed in one sitting Please get the word out to your undocumented students!

40. 40 MnSCU Two-Year Occupational Scholarship Program Administered by Office of Higher Education –Selection, awarding take place on campus Pilot program for 2016-17 and 2017-18 school years –Apply with 2016-17 FAFSA (or MN Dream Act) –2016 MN high school graduates/GED only No new recipients for 2017-2018 –Adjusted gross income ≤ $90,000 –Participate in free mentoring services –Enrolled in qualifying occupational programs in high- demand fields Award = Tuition & Fees minus Pell and State Grants Pilot will be evaluated by OHE –Legislature will determine whether to continue program

41. 41 Institutional Scholarships Many of these listed in central location on OHE website: http://www.ohe.state.mn.us/sPages/scholarshipsAll.cfm Tend to have early deadlines Average scholarship per first-time, full-time undergraduate for 2013-2014 College TypeAverage Scholarship% Receiving MnSCU 2-Year$ 1,174 5% MnSCU 4-Year$ 2,14137% U of M$ 4,34357% Non-Profit 4-Year$17,82392% Private Career$ 2,04938%

42. 42 Private Scholarships Student should check with local businesses, civic organizations, parents’ employers Most high schools compile lists of local scholarships Free internet search sites: www.collegeboard.com/pay www.scholarshipamerica.org www.fastweb.com www.studentscholarshipsearch.com www.gocollege.com www.scholarshiphelp.org Students should be sure to report any private scholarships to the financial aid office

43. 43 Federal and State Work Study Undergraduate or graduate students are eligible Employment may be on or off campus – resume builder! May work during summer Wages won’t count against student’s future financial aid eligibility on FAFSA Respond ‘Yes’ to Work Study question on FAFSA –Contact financial aid office for further information MN Dream Act applicants eligible for MN State Work Study if they have work authorization

44. 44 Student Loan Programs Loan comparison chart covers main features of all federal and state student loan programs –In general, federal loan programs have best terms and repayment options Reverse side displays various loan repayment options for federal student loans General Rule of Thumb: –Don’t borrow more than expected first year salary in field –Monthly payment will typically be around 1% of total student loan debt $300 for $30,000 debt #12 Student Loan Programs

45. 45 Federal Student Loan Programs From The Atlantic “The Scariest Student Loan Number” 7/19/2016 Average student debt is nowhere near the additional lifetime earnings gained by college credential

46. 46 Federal Student Loan Programs From The Atlantic “The Scariest Student Loan Number” 7/19/2016 Largest % of defaulters are students who borrowed a small amount and then dropped out of college without completing degree

47. 47 Tuition Reciprocity Allows MN residents to attend in neighboring states at rate similar to MN resident rate Students need to apply (some assume it’s automatic) –Apply directly to ND or SD college if recent MN high school graduate –Apply directly to colleges in Manitoba –All other students must submit application to Office of Higher Education in MN –Apply on-line for 2017-2018 after March 1, 2017 at: –www.ohe.state.mn.us Reduced rates for MN residents attending select schools in Illinois, Indiana, Kansas, Michigan, Missouri, Nebraska under Midwestern Student Exchange Program (MSEP)

48. 48 Federal Higher Education Tax Advantages American Opportunity Tax Credit Lifetime Learning Tax Credit Tuition and Fees Deduction Penalty Free IRA Withdrawals Coverdell Education Savings Account Student Loan Interest Deduction See Publication 970 at: www.irs.gov for details Also, handout in packet #16

49. 49 Helpful Resources College financial aid administrator knows best!! http://www.ohe.state.mn.us/sPages/finAid Insts.cfm http://www.ohe.state.mn.us/sPages/finAid Insts.cfm Questions on federal aid programs and application process (800) 433-3243 –www.studentaid.ed.gov Office of Higher Education financial aid staff (651) 642-0567 or (800) 657-3866 –www.ohe.state.mn.us

50. 50 Student Publications Office of Higher Education Former Paying for College now split into 4 shorter publications –No longer available in other languages Ordering instructions in right side of packet –Limited supply; order only what you need

51. 51 Student Publications Office of Higher Education Former Choosing a College now broken into: –Selection Methods students can use to select their best-fit college –Institution Profiles Compare important facts to explore your best fit college in Minnesota –Institution Programs Explore program offerings at MN colleges

52. 52 MAFAA Help for High Schools! For financial aid night help (e.g. speakers) –www.mafaa.org/public/public.php Please consider making your financial aid night a College Goal event! –College Goal volunteers will help you! See MAFAA and College Goal handouts in right side of packet

53. 53 OHE Outreach Contacts To participate in Summer Nudging project –OHE texts high school seniors in summer between high school and college –Kathleen.Klima@state.mn.us –(651) 341-6881 To schedule an outreach presentation –College financing, preparing for college, FAFSA –Marcio.Thompson@state.mn.us –(651) 259-3966 –http://www.ohe.state.mn.us/sPages/presentati on_req.cfm

54. 54 FAFSA Completion Initiative !!! High schools and other organizations working with students can participate –Data sharing agreement posted at: –http://www.ohe.state.mn.us/mPg.cfm?pageID=2148 Log into OHE FAFSA Completion website to determine FAFSA status for individual students –Did student file FAFSA? –Were there problems requiring resolution? Both Minneapolis and Saint Paul districts participate, as do many other high schools in the state For more information: Meghan.flores@state.mn.us

55. 55 Conference Evaluation Form Don’t forget to complete your conference evaluation form Conference hosts have CEU forms if you need one Have a great 2016-2017 school year! #4