Michigan High School Counselor Videoconference

Federal Update

November 19, 2004

Judy Florian, Presenter

Before we begin…..

Thank you for turning off your cell phone and/or pager

What is Federal Financial Aid?

Federal Pell Grant Federal Supplemental Educational

Opportunity Grant (SEOG) Federal Work-Study Federal Perkins Loan Federal Family Education Loan Federal Direct Loans

How to Apply

Free Application for Federal Student Aid (FAFSA)– Paper application

– Web-based application

Free Application for Federal Student Aid (FAFSA)

Initial step in the application process

Core document to apply for financial aid

Used to calculate an expected family contribution (EFC)

Confirms certain eligibility requirements

Free Application for Federal Student Aid (FAFSA)

Step One: Student demographic information

Step Two: Student financial information Step Three: Dependency status questions Step Four: Parent financial information Step Five: Independent student household

information Step Six: List of schools to receive results Step Seven: Signatures and certifications

How Is The Data Used?

In a statutory formula called the Federal Methodology

Looks at income, assets and size of family to determine family’s ability to pay for education

Result is called the Expected Family Contribution (EFC)

The Paper FAFSA

Color of the FAFSA– Green for students (Pantone

344U)– Purple for parents (Pantone 263U)

Questions follow same order as last year

Will be sent to high schools in November

Counselors may request additional forms by calling 1-877-4EDSPUBS or http://www.edpubs.org

2005-06 Changes

Added sentence to Certification Statement warning students not to disclose PIN to anyone

Added gray-shaded “MMDD” or “MMDDYY” in all date fields to help students and parents complete correctly

Encourages families to correct estimated tax return data after tax return for 2004 is completed

FAFSA on the Web www.fafsa.ed.gov

Most popular and recommended method of filing

Netscape 6.2 or higher or Internet Explorer 5.0 or higher

Transmitted directly to Central Processing System (CPS)

FAFSA on the Web

Apply Reapply Go to PIN web site Check status of

FAFSA View SAR

information Make corrections

FAFSA on the Web

Certification page will require students to agree not to disclose their PIN to anyone

Parents with multiple children in college will be able to transfer their information to other children’s applications

Spanish FAFSA on the Web

Spanish version will include:– Pre-application worksheet– Worksheets A, B and C– Income Estimator Worksheet– Drug Conviction Worksheet

Demonstration SiteFAFSA on the Web

Available December 5, 2004– To access, go to

www.fafsademo.test.ed.gov– Enter

»User name: eddemo»Password: fafsatest

PIN Web Site

Serves as electronic signature on ED documents, including electronic promissory notes

Used to gain access to ED systems, including – Corrections on the

Web– NSLDS– Direct Loan Origination – Direct Loan Servicing– Loan Consolidation

PIN Web Site

For added security– PIN applicants and

holders will be required to select and answer a Challenge Question

– On a regular basis, FSA will match records in PIN database with SSA’s Master Death File

– New audit system will track PIN user activity

Electronic Signatures

If both the dependent student and parent(s) have a federal PIN it is not necessary to sign and mail a signature page

Dependent students who have a PIN but whose parent(s) does not have a PIN, must still provide a signature page for the parent(s) signature and mail it

Without Electronic Signature

Print signature page and submit within 14 days

If signature page not received by Central Processing System (CPS) within 14 days, student receives rejected Student Aid Report (SAR)

Rejected SAR must be signed and submitted to CPS

Student Aid Report (SAR)

Paper SARs will be printed on green paper

Only last 4 digits of parent’s SSN will display on paper and electronic SARs

Displays official EFC Submit to college only if requested

Student Aid Report (SAR)

Paper application without student’s

e-mail address will result in paper Student Aid Report (SAR)

Paper application with student’s e-mail address will result in e-mail with web site for “SAR on the Web”

Corrections on the Web

Student’s PIN required to access PIN serves as student’s signature COTW with paper or electronic application Parents must have PIN to correct parent

information Pop-up message will appear when student

tries to correct transaction already corrected by a school

CPS Database Matches

Social Security Administration (SSA) Bureau of Citizenship and Immigration

Services (BCIS)-formerly Immigration and Naturalization Services (INS)

Selective Service Veterans Administration National Student Loan Data System

(NSLDS)

Avoid Errors!

Errors on the FAFSA or supplemental forms may delay application processing and result in the loss of financial aid funds.

Encourage students/parents to read the instructions and complete the forms carefully!

Independent Student Criteria

Born before January 1, 1982 Working on a master’s or doctorate program Married Has child(ren)/dependents for whom he/she

provides more than half the support Both parents are deceased Is/was a ward of the court until age 18 Veteran of the U.S. Armed Forces

Supplemental Forms

Institutional application CSS Financial Aid PROFILE Stafford loan application (bank-

funded)

Counselor Resources

National Association of Student Financial Aid Administrators (www.nasfaa.org)– Counseling Tools

Student Aid on the Web www.studentaid.ed.gov

FSA for Counselors www.ifap.ed.gov/FSACounselors/index.html– Online information for middle school, high

school and TRIO counselors

Additional Resources

Michigan Student Financial Aid Association (MSFAA) Speakers Bureau

– Financial aid speakers “for hire”»Experienced aid professionals will do

financial aid presentations free of charge

– Contact Jim Owens, 517.483.1301; owensj@lcc.edu