Paying for College

How to Complete the FAFSA 2009-2010

Overview

• Completing the FAFSA
• Special Circumstances

Why complete a FAFSA?

• FAFSA is required for all federal and most state student aid programs.
• Collects family’s personal and financial info
• No fee www.fafsa.ed.gov
• Can be submitted to 10 schools
• Info provided determines if student is eligible for financial aid.

When to complete FAFSA

• Complete soon after January 1, 2009
• State of Michigan deadline is March 1, 2009
• Reapply every year

Why FAFSA on the Web?

• Faster than paper
• Edit checks reduce chance of application being rejected because of missing or conflicting info
• Easy access — any computer with internet capability, MS and Mac, Netscape and Microsoft browser, no software to download

How fast are the FAFSA results available?

• It depends on:
  • web or paper application
  • signed by PIN or paper
  • email address provided
• If applying online, give email address and sign using PINs — 24-48 hours
• Check status online

What are FAFSA results?

• Student Aid Report (SAR)
  • Student receives copy (electronic or paper)
  • School(s) receive electronic copy
• SAR summarizes info from FAFSA. Check for accuracy. If corrections are needed, do them online or mail the corrections to the address provided on your SAR.
• Comments alert student to additional requirements.
• School uses SAR’s EFC number to determine financial aid eligibility
• If you qualify, the school prepares a financial aid package.

Before beginning a FAFSA

www.fafsa.ed.gov/before001.htm

Apply for a PIN

• Both student and one parent will need a PIN.
• PIN is used to electronically sign the FAFSA.
• Provide email address and receive PIN with 24-48 hours.
• PIN Site

Documents Needed

• Demographic information (social security number, driver’s license, alien registration card, etc.)
• 2008 - 1040, W2s, IRS Schedules
• 2008 - Untaxed income records (social security, welfare, workman’s comp., etc.)
• 2008 bank statements
• 2008 investment records (business, stocks, rental property, farms, partnerships, S-corp., etc.)

Keep these records! You may need them again. Do not mail your records with your signature page!

Pre-application Worksheets

www.fafsa.ed.gov/worksheet.htm

• Worksheets consist of all questions related to the student’s (and parent’s) finances.
• Questions follow the sequence of the online application.
• Use to guide yourself through the online application.
• if the answer to a numeric question is zero, enter 0.
• Report yearly dollar amounts.

Let’s begin the FAFSA

Info about the student

• Demographic info
• Be careful on:
  • spelling of name
  • social security number
  • date of birth
• FAFSA information will be matched with the following departments
  • INS
  • IRS
  • NSLDS
  • Social Security Office
  • Justice Department
  • Veteran’s Administration
• Enrollment plans — Give best estimate.
• Are you male? — Do not leave blank.
• Selective service — Male students may register using the FAFSA.
• Drug convictions for possession or selling drugs
  • Federal or State level
  • Do not count if removed from record or under 18 and tried as a juvenile

Dependency Status

For the 2009-2010 year you may apply as an independent student if you answer “Yes” to one or more of the dependency questions.

• born before January 1, 1986?
• Working on a Master’s or Doctorate program in 2009-2010?
• Married?
• Have children that receive more than half of their support from you?
• Supporting other dependents?
• Parents deceased? Ward of the Court?
• Currently serving on active duty in the U.S. Armed Forces?
• Veteran of the U.S. Armed Forces?
• Are you or were you an emancipated minor as determined by a court in your state of legal residence?
• Are you or were you in legal guardianship as determined by a court in your state of legal residence?
• At any time on or after July 1, 2008, did your high school or school district homeless liaison determine that you were an unaccompanied youth who was homeless?
• At any time on or after July 1, 2008, did the director of an emergency shelter or transitional housing program funded by the U.S. Department of Housing and Urban Development determine that you were an unaccompanied youth who was homeless?
• At any time on or after July 1, 2008, did the director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless?

If you answer “No” to all questions, you must also provide parental information of the FAFSA.

Student Status

• Student’s filing status and tax form filed
• Parent’s marital status on the day FAFSA filed
  • Married, remarried — Single — Widowed — Divorced/Separated
• Which parent to use?
  • the one student lived with more
  • the one who provided more than 50% financial support
  • If the parent is remarried, then the stepparent’s information must also be provided.

Student’s Finances

• Student’s AGI and tax paid
• Wages and Exemptions
• Student 2008 Additional Financial Information
• Student 2008 Untaxed income

www.fafsa.ed.gov/worksheet.htm

• Student’s assets — Net asset value on the day FAFSA filed
• Investment assets
  • Include: trust funds, Uniformed Gifts to Minors Act Accounts (UGMA), college saving plan (MESP, 529 plans)
  • Do not include: MET (Michigan Education Trust)
  • Business and farm assets
  • Current value of cash, checking and savings accounts
• Worksheets and asset questions will be skipped if family qualifies for simplified analysis.

Parent information

• Social Security Numbers
• Last names
• Household size
• Number in college
• State residency
• Parent’s AGI and tax paid
• Number of exemptions
• Parent 2008 Additional Financial Information
• Parent 2008 Untaxed Income
• Parent’s assets — Net value on the day FAFSA filed
• Investment assets
  • Include: trust funds, Education IRAs, mutual funds, real estate, investments, second, vacation or rental homes
  • Do not include: primary residence, retirement funds (IRAs, 401k, 403b, Keogh, SEP, etc.)
• Business and farm assets
• Current value of cash, checking and savings accounts
• Age

Schools to receive results

• List the Federal School Code of the colleges the student is considering.
  • Online lookup
  • List Michigan college of choice first
  • List up to 10 colleges
• Indicate the type of housing associated with each school.
• All colleges listed will receive electronic FAFSA record of student.

Review FAFSA info

• Online application gives you the opportunity to make changes or correct mistakes.
• If edit check indicates problem, software will lead you through resolution.
• Provide preparer’s information.

Signatures

• Required signatures
  • Student and one parent
  • PIN serves as signature
• Use your PIN to electronically sign or print the signature page and mail.
• Print a copy of the FAFSA for your records.

www.pin.ed.gov

Submit FAFSA

• Student & Parent Certifications
  • All information is true and complete.
  • Dept. of Ed. has authority to verify information contained on the FAFSA.
  • Student and parent will submit proof if asked.
  • Purposeful false or misleading info leads to $20,000 fine, prison or both.
• Student certification
  • Will use aid received for educational expenses related to attendance at the college that determined eligibility.
  • Not in default on a Title IV educational loan.
  • Does not owe an overpayment on Title IV educational grant.
  • Will notify his/her school if he/she does owe an overpayment or is in default.

Finished

• Print or write confirmation number
• Estimated EFC (preliminary)
• School will determine eligibility.
• Check status of application online.

Special Circumstances

• Initially must report 2008 income on FAFSA.
• If financial circumstances change in 2009 — Contact each college to request a re-evaluation.
  • Each college is responsible for approving changes in circumstances.
  • Results may differ between colleges.
• Common special circumstances include:
  • Loss of income through layoff, retirement or disability
  • Death or divorce of a parent after filing FAFSA
  • High medical expenses paid and not covered by insurance

Steps to apply for aid

• Apply for admission to the college(s).
• Complete and submit FAFSA.
• Review FAFSA results for accuracy.
• Check with college for other required forms and documents.
  • Inquire about institutional funds.
  • Submit all requested documents.
• FAFSA information may be selected for verification. Verification requires submission of income documents and a verification worksheet.
• Aid cannot be processed until all required documents have been submitted to the Financial Aid Office.
• The Financial Aid Office will review your documents and determine your aid eligibility.

FYI

• Everyone who applies should receive notification from the college regarding their eligibility.
• You may not receive financial aid at more than one college at the same time.
• Read all correspondence and promptly follow instructions.
• You do not have to accept all award type, but the school may not replace declined aid.
• Contact the Financial Aid Office if you have questions about your award.
• Attend classes!
• Maintain satisfactory progress.

Summary

• Student must:
  • Apply for admission to the college(s).
  • Complete and submit the FAFSA.
  • Check with college for other required forms and documents.
  • Review SAR for accuracy.
  • Submit required documentation to the Financial Aid Office.
• Financial Aid Office will:
  • Determine eligibility
  • Package aid
  • Send award letter or denial letter

Contact Schoolcraft College if you have any questions

Admissions & Enrollment Center: (734) 462-4426

Office of Financial Aid: (734) 462-4433