Robin L. Stimac Student Financial Aid Manager Metropolitan Community College – Maple Woods

FAFSA Free Application for Federal Student Aid A standard form that collects demographic and financial information about the student (and their family, if applicable)

Why fill out a FAFSA? Financial “need” is relative to college cost (You never know…) The FAFSA is also the Missouri student financial aid application Low interest rate student loan eligibility is based on the results of the FAFSA

FAFSA allows you to apply for… Federal Pell Grants (maximum award amount for is scheduled to increase to $5,815.00) Federal SEOG Grants TEACH Grants Iraq and Afghanistan Service Grants Federal Work-Study Federal DIRECT Loans for students, Federal Perkins Loans for students & Federal PLUS Loans for parents and…

FAFSA information is also used for… Missouri Student Aid Programs (April 1, 2016 deadline) Access Missouri Grants Need-based grants from many colleges/universities Outside & Private Scholarships

FAFSA4caster If you’re not quite ready to apply for federal student aid, please check out FAFSA4caster at: FAFSA4caster gives you an early estimate of your federal aid eligibility, which will give you better insight when making college choices Your estimated federal student aid eligibility will help you better understand the types and approximate amount of federal student aid for which you may qualify Remember that FAFSA4caster is not an application for aid; it’s just a planning tool. When you are ready to actually apply for financial aid, you must still file the FAFSA!

FAFSA on the Web Website: FAFSA on the Web became available on January 1, 2016 FAFSA on the Web Worksheet Used as pre-application worksheet Questions follow order of FAFSA on the Web

Applying for Federal Student Aid IDs In order to be able to electronically sign the FAFSA, the first thing that a student (and a parent, if applicable) should do is apply for a Federal Student Aid ID (FSA ID) Username and Password. You may apply for a FSA ID at: and clicking on the FSA ID Link By entering your FSA ID Username and Password to electronically sign the FAFSA, the student (and parent, if applicable) will be able to certify that all information provided is true and accurate as of the date the FAFSA is completed and that you agree that proof of the information reported will be submitted to the Financial Aid Office at your school, if it is required (i.e., IRS Data Retrieval, Tax Return Transcripts, Verification Worksheets, W-2s, 1099s, etc.)

CAUTION! Avoid being charged a fee to file the Free Application for Federal Student Aid (FAFSA) Completion and processing of the FAFSA are FREE If filing via FAFSA on the Web, be sure to go directly to: Contact your college’s financial aid office if you need special assistance in completing the FAFSA

Be sure to gather this information first… Social Security Number and Date of Birth for student (and parents, if applicable) Student Driver’s License Number Student’s Alien Registration Number (if they are not a U.S. citizen) 2015 Federal Income Tax Returns and W-2 Forms for the student (and for their spouse, if married or for their parents, if applicable). NOTE: If you have not yet filed a 2015 tax return, you can submit your FAFSA using estimated tax information from your 2014 federal income tax return and indicate that you “will file” on the FAFSA. However, once you actually do file your 2015 return, you are required to correct your information on the FAFSA and indicate that you have “already filed”. Savings, investments, business and farm asset information

You are now ready to get started!

Student’s dependency status: If the student responds “No” to all questions, then the student is considered dependent and must provide parental information on their FAFSA If the student responds “Yes” to any question, then the student is considered independent and will not be required to provide parental information on their FAFSA Dependency Determination

Dependency Determination (continued) Born before January 1, 1993 Married Working on a Master’s or Doctorate Program in Have children who will receive more than half of their support from you (the student) between July 1, 2016 and June 30, 2017 Have dependents (the student) who live with you and will receive more than half of their support from you (the student), now and through June 30, 2017 Currently serving on active duty in the U.S. Armed Forces or are a National Guard Reserves enlistee who is on active duty for purposes other than training Veteran of the U.S. Armed Forces

Dependency Determination (continued) Since you (the student) turned 13, both your parents were deceased, you were in foster care, or you were a dependent or ward of the court (does not include incarceration) As determined by a court in your state of legal residence, you (the student) were considered an “Emancipated Minor” immediately before you reached the age of being an adult in your state of legal residence and can provide a copy of the court’s decision As determined by a court in your state of legal residence, you are (or were) considered as being in “Legal Guardianship” (this does not include your parents) and can provide a copy of the court’s decision

Dependency Determination (continued) On or after July 1, 2015, you (the student) was homeless or at risk of being homeless On or after July 1, 2015, your high school or school district homeless liaison determined that you (the student) were an unaccompanied youth (not living in the physical custody of your parents or guardian) who was homeless (lacking fixed, regular and adequate housing, which includes living in shelters, motels or cars, or temporarily living with other people because you had nowhere else to go)

Dependency Determination (continued) On or after July 1, 2015, did the director of an emergency shelter or transitional housing program funded by HUD determine that you were an unaccompanied youth who was homeless? On or after July 1, 2015, did the director of a runaway or homeless youth basic shelter or transitional living program determine that you were an unaccompanied youth who was homeless or were self- supporting and at risk of being homeless?

Definition of a Parent Who is a PARENT for FAFSA purposes? Legal parents are biological or adoptive, or as determined by the a the state to be a parent (for example, if the parent is listed on the student’s birth certificate). Grandparents, foster parents, legal guardians, widowed stepparents, aunts, uncles and siblings are not considered parents on the FAFSA unless they have legally adopted the student). If the student’s legal parents are living & married to each other, or are not married and live together (regardless of their gender), answer the questions about both of them.. If the student’s parent was never married and does not live with the other legal parent, or if the parent is widowed, only answer the questions about that parent. But if the widowed parent is remarried (as of the date you complete the FAFSA), answer the questions about that parent and the stepparent.

In cases of divorce or separation, who is the PARENT? If the student’s legal parents are divorced but living together, select “Unmarried and both parents living together.” If the student’s legal parents are separated but living together, select “Married or remarried,” not “Divorced or Separated.” Definition of a Parent (continued)

Definition of a Parent (continued) If the student’s parents are divorced or separated, the student should answer questions about the parent they lived with the most during the past 12 months. If the student did not live with one parent more than the other, the student should provide answers about the parent who provided more financial support during the past 12 months or during the most recent year that the student actually received support from a parent. If this parent is remarried, as of the day the student completes the FAFSA, the student will need to answer questions about the parent and about their stepparent.

What kind of information will we need to provide on the FAFSA? Generic directory information for both the student and parent(s) Number of Family Members in Number of College Students in the household in (do not include parent information even if the parent is attending college) Information from the 2015 Federal Income Tax Returns & W-2 forms for both the student and parent(s) Be sure to select the IRS Data Retrieval Tool if you have already filed your taxes electronically

IRS Data Retrieval Tool The easiest way to complete or correct your FAFSA with accurate tax information is by using the IRS Data Retrieval Tool through In a few simple steps, most students and parents who filed a 2015 tax return electronically can view and transfer their tax return information directly into their FAFSA.

IRS Data Retrieval Tool (continued) Unfortunately, not all FAFSA filers will be able to use the IRS Data Retrieval Tool Examples of cases where IRS DRT cannot be used include: – The student/parent is married, and the student/parent or his/her spouse filed as Married Filing Separately – The student/parent is married, and either the student/parent or his/her spouse file as Head of Household – The parents’ marital status is “Unmarried and both parents living together”

IRS Data Retrieval Tool (continued) – The student/parent filed a Form 1040X amended return. (Remember, the Form 1040X is used to correct your original tax return) – The student/parent filed a Puerto Rican or foreign tax return – You do not have a valid Social Security Number – Your marital status changed after December 31 st of the previous calendar year NOTE: If you transfer your IRS tax information, questions that are populated with that tax information will be marked with “Transferred from the IRS” on your FAFSA

IRS Data Retrieval Tool (continued) But, if you are eligible to use the IRS Data Retrieval Tool, I highly recommend you do so for several reasons: It’s the easiest way to provide your tax data It’s the best way of ensuring that your FAFSA has accurate tax information Utilizing the process reduces documents requested by the financial office for verification purposes

What kind of information will we need to provide on the FAFSA? (cont.) Government assistance received by any member of the household - SSI, SNAP, Free/Reduced Price Lunch, TANF, WIC Additional Financial Information – American Opportunity or Lifetime Learning Tax Credit; Child Support Paid; Taxable earnings from Work-Study, Assistantships or Fellowships; Taxable Grant and Scholarship Aid reported to the IRS in your adjusted gross income; Taxable Combat Pay or Special Combat Pay (if it was included in your adjusted gross income); Cooperative Education Program Earnings Untaxed Income - Payments to tax-deferred pension & retirement savings plans; IRA deductions & payments to self-employed SEP, SIMPLE, Keogh and other qualified plans; Child Support Received for all children (don’t include foster care or adoption payments); Tax Exempt Interest Income; Untaxed IRA & pension distributions; Housing, Food and other living allowances paid to members of the military, clergy and others; (see next slide)

What kind of information will we need to provide on the FAFSA? (cont.) Veterans non-education benefits, other untaxed income not reported, such as Worker’s Compensation or Disability and untaxed portions of health savings accounts; Money received & paid on your behalf not reported elsewhere on the FAFSA Total current balance of cash, savings and checking accounts. Your net worth means the value, as of today, of investments, business or investment farms. When calculating your net worth, use (0) for investments or properties with a negative value. Investments include real estate (other than the home you live in), trust funds, UGMA and UTMA accounts, money market & mutual funds, certificates of deposit, stocks & stock options, bonds, other securities, installment & land sale contracts (including mortgages held), commodities, etc.

What kind of information will we need to provide on the FAFSA? (cont.) Investments also include qualified educational benefits of educational savings accounts (Coverdell savings accounts, 529 college savings plans and the refund value of 529 prepaid tuition plans, etc.). For a student who does not report parental information, the accounts are reported as student investments on the FAFSA. For a student who must report parental information, the accounts are reported as parental investments, including all accounts owned by the student and all accounts owned by the parents for any member of the household. Money received or paid on the student’s behalf, also includes distributions to you (the student beneficiary) from a 529 plan that is owned by someone other than the student or their parent (such as grandparents, aunts, uncles, and non-custodial parents). Investments do not include the home you live in, the value of life insurance, retirement plans (401[K] plans, pension funds, annuities, non-education IRAs, Keogh plans, etc.) or cash, savings and checking accounts that were previously reported on the FAFSA elsewhere. Investments also do not include UGMA and UTMA accounts for which you are the custodian, but not the owner. *** Investment value means the current balance or market value of these investments as of today. Investment debt means only those debts that are related to the investments. ***

What kind of information will we need to provide on the FAFSA? (cont.) Business and/or investment farm value includes the market value of land, buildings, machinery, equipment, inventory, etc. Business and/or investment farm debt means only those debts for which the business or investment farm was used as collateral. Business value does not include the value of a small business if your family owns and controls more than 50 percent of the business and the business has 100 or fewer full-time or full-time equivalent employees. For small business value, your family includes (1) persons directly related to you, such as a parent, sister or cousin, or (2) persons who are or were related to you by marriage, such as a spouse, stepparent or sister-in-law. Investment farm value does not include the value of a family farm that the student (their spouse and/or parents) live on and operate.

What kind of information will we not need to provide on the FAFSA? * Do NOT include: Extended Foster Care Benefits, Student Aid, Earned Income Credit, Additional Child Tax Credit, welfare payments, untaxed Social Security Benefits, Supplemental Security Income, Workforce Investment Act educational benefits, on-base military housing or a military housing allowance, untaxed combat pay, benefits from flexible spending arrangements (e.g., cafeteria plans), foreign income exclusions or credit for federal tax paid on special fuels

What kind of information will we not need to provide on the FAFSA? * information for a small business if your family owns and controls more than 50% of the business and the business has 100 or fewer full-time or full-time equivalent employees * information for a family farm that you live on and operate

FAFSA on the Web Check to make sure that you have entered all requested information correctly, including both the student’s (and parents’) FSA ID Numbers and Passwords, then submit your application to Federal Student Aid Programs. Be sure to print the Confirmation Page and retain it for your records. NOTE: This is not your last step in applying for financial aid! Typically, you will receive the results of the federal needs analysis – your Student Aid Report (SAR) – by which will contain a direct link to the student’s online Student Aid Report (SAR) acknowledgement (or by regular mail if you do not provide your address when submitting your application) within 10 business days. Your school(s) will receive your results within 14 working days. Students with FSA ID Usernames and Passwords may view their SAR online at

Expected Family Contribution Calculated from information you provide on the FAFSA using a federal formula Represents the amount a student (or their family) can reasonably be expected to contribute as determined by the Department of Education, but is not what the family will actually pay to the college

Unusual or Special Circumstances After you have received your official Student Aid Report (SAR) from the Department of Education, you should discuss any unusual or special circumstances that affect your financial situation with your college’s Financial Aid Office Loss of income or benefits Loss of employment or change in employment status Divorce/Separation or death of a parent or spouse Excessive medical bills paid out of pocket Victim of a natural disaster One-time lump sum distribution or income

Financial “Need” Formula Cost of Attendance - Expected Family Contribution Gross Financial Need

Some things to REMEMBER... Apply as early as possible but be sure to have your FAFSA submitted before April 1, 2016 Receive and “READ” the results of your federal needs analysis – Student Aid Report Acknowledgment which will come via . Check to see if there are any comments or issues that need your immediate attention or that might affect your eligibility to receive financial aid. Don’t forget that completing the FASFA is just Step One in applying for financial aid! Contact or visit the financial aid office to see if they received your information and, if so, what you need to do next

…other things to REMEMBER Request that your final high school transcript be sent to your college as soon as possible after graduation Request that final transcripts for all college credit taken while you attended high school (i.e., course work taken for dual credit) be sent to your college as soon as possible after graduation Be sure to meet your school’s Satisfactory Academic Progress requirements in order to maintain financial aid eligibility And don’t forget…It is your responsibility to complete a “Renewal” FAFSA each year! NOTE: For , you will complete your “Renewal” FAFSA after October 1, 2016 using information from your 2015 Federal Income Tax Returns and W-2 Forms…

Please do not hesitate to contact me: Robin L. Stimac Student Financial Aid Manager Metropolitan Community College-Maple Woods Phone: (816)