© NASFAA 2006 Applying for Financial Aid

© NASFAA 2006 Sponsored by:

© NASFAA Thanks to our Massachusetts Partners u American Student Assistance (ASA) u Bank of America u Citizens Bank u The College Board u The Lumina Foundation for Education u Massachusetts Association of Student Financial Aid Administrators (MASFAA) u Massachusetts Educational Financing Authority (MEFA) u Nellie Mae u The Education Resources Institute (TERI)

© NASFAA What Will You Learn Today? Sources and types of financial aid Required financial aid application forms How to complete the Free Application for Federal Student Aid (FAFSA) Information about any additional aid in your state Answers to your individual questions

© NASFAA Federal government State government Colleges and universities Private agencies, companies, foundations, and your parents’ employers Sources of Financial Aid

© NASFAA Types of Aid Gift Aid – Grants or scholarships that do not need to be repaid Work –Money you earn as payment for a job on or off campus Loans –Borrowed money to be paid back, usually with interest

© NASFAA State Aid Almost all 50 states have some form of special grant or loan aid for their state residents. Some states use the data you provide on the (FAFSA) to award aid; Other states may require you to submit supplemental forms. Your school counselor should have the correct form for your state’s application. If the forms are not available at your school, contact your state higher education agency directly.

© NASFAA Eligibility for State Aid File the FAFSA by May 1 st Must be a permanent legal resident of Massachusetts Enrolled in a full-time, degree program

© NASFAA State Aid Application Requirements By May 1st complete and submit: –The Free Application for Federal Student Aid

© NASFAA Need-Based Grants Federal Grants Pell Grants –$4,050 maximum per year Academic Competitiveness Grants (ACG) -- $750 Federal Supplemental Educational Opportunity Grant (FSEOG) –$4,000 maximum per year

© NASFAA Types of Applications FAFSA Other applications or forms as required by the college such as: –2006 federal tax returns (along with schedules and W-2s) or other income documentation – CSS Financial Aid PROFILE – Institutional Scholarship and/or Financial Aid Application

© NASFAA FAFSA Information & Tips File as soon as possible after January 1, 2007 Use estimated 2006 income information if taxes are not complete at time of FAFSA submission You and at least one parent whose information is reported must complete and sign the FAFSA

© NASFAA Federal PIN PIN (Personal Identification Number) serves as the electronic signature on ED documents You and at least one parent need PIN to sign the FAFSA electronically May be used to: –Check on FAFSA status –Verify and correct FAFSA data –Add additional schools to receive FAFSA data –Change home and addresses

© NASFAA Federal PIN If an address is provided, PIN will be ed to the PIN applicant within hours Apply for your PIN TODAY at:

© NASFAA Getting Ready Before starting the FAFSA, gather your: –Driver’s license, if you have one –Alien Registration Card, if you are an eligible non-citizen Create a file for copies of all financial aid documents submitted.

© NASFAA Getting Ready Before starting the FAFSA, gather: –Student and Parent Social Security cards 2006 W-2 Forms and other records of money earned 2006 federal income tax form (even if not completed) Records of untaxed income Current bank statements Business, farm and other real estate records Records of stocks, bonds and other investments Create a file for copies of all financial aid documents submitted

© NASFAA Getting Started Read all application instructions If planning to submit the paper FAFSA: –Use pen with black ink –Print clearly in CAPITAL letters: –Fill in ovals completely: –Do not leave blanks (unless directed by instructions) –Do not write comments or notes anywhere on form –Do not use correction fluid 1 5 E LM S T

© NASFAA The FAFSA A Seven-Step Process Step One–is about the student Step Two–asks for student income and assets Step Three–determines student dependency status Step Four–requires parental information for dependent students Step Five–is for independent students only Step Six–allows the student to list up to four schools Step Seven–Certification Statement asks for signatures and submission date of the FAFSA

© NASFAA List your name and Social Security Number exactly as they appear on the Social Security card (both will be compared through a database match process) #8 Social Security Number S U S A N S U S A N J O N E S J O N E S L #1-3 Name PAGE 7 – Step One #9 Date of Birth Be careful not to write the current year for your date of birth

© NASFAA Fill in the your address that will be valid at least until the student starts college #13 Address PAGE 7 – Step One S J O N E S Y A H O O. C O M

© NASFAA #14 Citizenship Status PAGE 7 – Step One a.If U.S. citizen, status will be confirmed by Social Security match b.If eligible non-citizen, status will be confirmed by Department of Homeland Security (DHS) match. This includes: U.S. permanent residents with I-551 Form Conditional permanent residents with I-551C Form Eligible non-citizens with I-94 Form c.If neither A nor B, you are ineligible for federal/state aid, but might still be eligible for state or institutional funds

© NASFAA If eligible non-citizen, write in your eight- or nine-digit Alien Registration Number (ARN) Precede an eight digit ARN with a zero Copy of Permanent Resident Card might be requested by the financial aid office #15 Alien Registration Number PAGE 7 – Step One

© NASFAA #14 Citizenship Status PAGE 7 – Step One c.If neither a nor b, you are ineligible for federal or state aid, but might still be eligible for a college’s own funds

© NASFAA #14 Citizenship Status PAGE 7 – Step One NOTE: if you are undocumented or under-documented start inquiring in elementary, middle or high school to see if it is possible for younger students to become a permanent resident apply for all private scholarships for which you may be eligible check with colleges and universities to see if institutional financial aid is available watch for changes in federal and state laws regarding the eligibility of undocumented or under-documented students For more information and a list of scholarships, go to

© NASFAA Residency relates to your permanent home state: –if you are dependent, the state of legal residence is usually the state in which your custodial parent lives State of legal residence is also used: –in the need calculation to determine the appropriate allowance for state and other taxes paid by that state’s residents –to determine eligibility for state grants #18-20 Student’s State of Legal Residence PAGE 7 – Step One M A M A

© NASFAA Male students who are 18 years of age or older must be registered with Selective Service to receive federal and state aid #21-22 Selective Service Registration PAGE 7 – Step One #22 Answer “yes” only if the student is male, aged 18-25, and has not yet registered. The student may also register by going to:

© NASFAA Indicate your most immediate degree or certificate objective for #23 Degree Objective PAGE 7 – Step One 1 #24 Grade Level Indicate your grade level beginning with the school year 0

© NASFAA Provide information about the college you are most likely to attend – If in doubt, report “Full-time” #25 Expected Enrollment Status for PAGE 7 – Step One 1 #26 Types of Student Aid Indicate the other types of aid you are interested in for the school year, in addition to grants 1

© NASFAA –Requirement to receive Federal and State Aid –Home schooling or Ability to Benefit test may fulfill requirement #27 High School Diploma or GED? PAGE 7 – Step One If high school senior, the answer is ‘NO’ #28 First Bachelor’s Degree?

© NASFAA #29-30 Parents’ Educational Level PAGE 7 – Step One Indicate highest level of schooling completed by biological or adoptive parents (for state award purposes only) –Use birth parents or adoptive parents - not stepparents or foster parents –This definition of parents is unique to these two questions

© NASFAA DO NOT SKIP THIS QUESTION You should: –Answer “NO” if: Conviction was for alcohol or tobacco Conviction was removed from record or occurred before age 18 (unless tried as an adult) –Answer “YES” if you have been convicted of possessing or selling illegal drugs while enrolled and receiving federal student aid #31 Drug Conviction Question PAGE 7 – Step One

© NASFAA #32-45 Questions are identical to those we will cover in the parents’ income and asset section of Step Four. In Step Two: –Report your 2006 income and current assets –If you are single, ignore references to “spouse” –If you are married, report spouse’s income and assets –Complete Worksheets A, B, and C for the student on Page 5 Step Two Student Income and Asset Information PAGE 8 – Step Two

© NASFAA –If you are eligible for veterans’ education benefits, report monthly amount expected –Number of months should equal number of months you will attend school –If not applicable, answer zero For more information, contact the VA at: (800) #46-47 Student Veterans’ Education Benefits PAGE 8 – Step Two 0 0

© NASFAA Step Three PAGE 8 – Step Three #48-55 Determination of Dependency Status

© NASFAA #48-55 Determination of Dependency Status PAGE 8 – Step Three If you answered “no” to all questions in this step, go to Step Four. For FAFSA filing purposes, you are considered a dependent student and are required to provide parental information If you answered “yes” to any question in this step, skip Step Four and go to Step Five. For FAFSA filing purposes, you are considered an independent student

© NASFAA Step Four Parent Information See Notes on page 3 of FAFSA instructions about who is considered a parent –Biological or adoptive parent(s) –Stepparent Regardless of any prenuptial agreements PAGE 9 – Step Four

© NASFAA Step Four Parent Information PAGE 9 – Step Four Do not provide information about: –Foster parent(s) You are automatically considered an independent student if you are a ward of the court –Legal guardian(s) or grandparent or other relative Must attempt to get biological parental information if guardianship ends at age 18 Colleges may use Professional Judgment to allow you to file as an independent student

© NASFAA #56 Parents’ Marital Status as of Today PAGE 9 – Step Four #57 Month and year parents were married, separated, divorced, or widowed M M Y Y Y YM M Y Y Y Y

© NASFAA NOTE: This information should be provided for the parents who are required to give information for Step Four #58-65Father’s and Mother’s SSN, Last Name, First Initial, and Dates of Birth PAGE 9 – Step Four J O N E S J O N E S P A R K E R P M

© NASFAA Include in parents’ household: the student applying for financial aid the custodial parent(s) parents’ other dependent children, if parents provide more than half their support or the children could answer “no” to every question in Step Three, regardless of where they live other people, if they now live with the parents, and if the parents provide more than half their support, and will continue to provide that level of support from 7/1/07 through 6/30/08 #66 Parent Household Information PAGE 9 – Step Four 0 5

© NASFAA –Always include the student even if he/she will attend college less than half-time in –Include other household members from #66 only if they will attend at least half time in in a program that leads to a college degree or certificate –Always exclude parents NOTE:Some financial aid offices will require proof that other family members are attending college #67 Family Members Attending College PAGE 9 – Step Four 2

© NASFAA –Question #68: Indicate the two-digit state code for your parents’ permanent address –If the answer to #69 is “no,” in Question #70, enter the month and year residency began for the parent who has been a legal resident of that state the longest #68-70 Parents’ State of Legal Residence PAGE 9 – Step Four M A M YY M YY

© NASFAA Step Four Parent Income and Asset Information –If the answer to any question is zero or the question does not apply, enter 0: –Report whole dollar figures: –Recommendation: If parents have not filed their 2006 federal tax return, use W-2 forms and/or other employment records to estimate total income PAGE 9 – Step Four, $ $ (no cents),

© NASFAA #71-75 Parents’ Household Federal Benefits PAGE 9 – Step Four Indicate if you, your parents, or anyone in your parents’ household received benefits from any of the federal programs listed during 2006.

© NASFAA #76–Indicate your parents’ tax filing status for 2006 #77–Which tax return did or will your parent(s) file for 2006? #78–Even if your parent(s) did not file a 1040A or 1040EZ, read the instructions to see if they would have been eligible to do so #76-78Parent Tax Return Filing Status for 2006 PAGE 9 – Step Four

© NASFAA –If your parents have not yet filed their 2006 federal tax return information, it is okay to estimate information for these questions –If your parents have completed their 2006 federal tax return, use 2006 tax return information to fill out Questions # Pay attention to specific line-items Reminder: If the answer is zero or the question does not apply, enter 0 #79-81 Parent Income and Tax Information PAGE 9 – Step Four

© NASFAA This figure is often different than the adjusted gross income figure on your parents’ tax return. Use W-2 forms and other records to list all income in 2006 earned from work (including income earned from self-employment) #82-83 Money Earned from Work by Parent(s) PAGE 9 – Step Four

© NASFAA #84 Worksheet A: Untaxed Income & Benefits To answer, carefully complete the right column of Worksheet A (Page 5 of instructions). NOTE:Students should keep a copy of the worksheet because the financial aid office may request a copy PAGE 9 – Step Four

© NASFAA #85 Worksheet B: Untaxed Income & Benefits PAGE 9 – Step Four

© NASFAA PAGE 9 – Step Four #86 Worksheet C: Exclusions to Income Totals from Worksheets A, B, and C should be entered in Questions 84, 85, and 86 on Page 9 of the FAFSA

© NASFAA #87-89 –List the net value of parent assets as of the day the FAFSA is completed –If net worth is one million dollars or more, enter –If net worth is zero, enter 0 (do not leave blank) Step Four Parent Asset Information PAGE 10 – Step Four, $ , $ 0 NOTE: Some financial aid offices may request supporting documentation for the answers to these questions

© NASFAA Report the current balance of cash, checking and/or savings accounts as of the day you complete the FAFSA #87 Parent Asset Information PAGE 10 – Step Four

© NASFAA Net Worth means current value minus debt #87-89 Parent Asset Information PAGE 10 – Step Four

© NASFAA Investments include: real estate (other than your parents’ home) trust funds UGMA and UTMA accounts money market and mutual funds certificates of deposit stocks and stock options #87-89 Parent Asset Information PAGE 10 – Step Four bonds and other securities Coverdell IRAs 529 plans owned by your parents installment and land sale contracts commodities, etc.

© NASFAA #87-89 Parent Asset Information PAGE 10 – Step Four Business/Investment Farm includes: –market value of land, buildings, machinery, equipment, and inventory. Debt means only those debts for which the business was used as collateral NOTE:DO NOT include the home you live in, the value of life insurance and your parents’ retirement plans (pension funds, annuities, non-education IRAs, Keogh plans, etc)

© NASFAA #90 Household Information Step Five (Independent Students) PAGE 10 – Step Five Complete this step only if you answered “yes” to any question in Step Three (Questions 48-55)

© NASFAA #90 Household Information Include in your household: you (and your spouse if married) your children, if you will provide more than half their support other people, if they now live with you and you provide more than half their support, and will continue to provide that level of support from 7/1/07 through 6/30/08 PAGE 10 – Step Five

© NASFAA PAGE 10 – Step Five #91 Family Members Attending College –Count yourself even if you will attend college less than half-time in –Include others counted in #90 only if they will attend at least half-time in in a program that leads to a college degree or certificate

© NASFAA #92-96 Household Federal Benefits PAGE 10 – Step Five Indicate if you, your spouse, or anyone in your household received benefits from any of the federal programs listed during 2006.

© NASFAA P A INDEPENDENT UNIVERSITY COMMUNITY COLLEGE ABC STATE UNIVERSITY UNIVERSITY IN ARIZONA M A L A A Z A Z Step Six: PAGE 10 – Step Six #97 School Information

© NASFAA #97 School Information PAGE 10 – Step Six List up to four schools to which you are applying For faster and more accurate processing, write in both the Title IV school code and the school name Check with each college’s financial aid office, the student’s high school counselor, or the U.S. Department of Education’s website ( for a listing of federal school codes of the colleges to which the student is applying Select the housing plan that best describes the type of housing you expect to live in while attending each listed school

© NASFAA In Question #97, list those schools with the earliest financial aid deadlines If you are applying to more than six schools, wait for the processed Student Aid Report (SAR) or add additional schools via the Web Strategies for Listing Colleges PAGE 10 – Step Six #97 School Information

© NASFAA #98-99 Read, Sign, and Date PAGE 10 – Step Seven Student Signature Parent Signature

© NASFAA Read the statement in Step Seven before submitting the FAFSA Fill in the date you completed the FAFSA You and at least one parent must sign the FAFSA – If submitting FAFSA on the Web, you and your parent must provide your individual PINs Be cautious about paying someone to complete the FAFSA You can do it! #98-99 Read, Sign, and Date PAGE 10 – Step Seven

© NASFAA Types of FAFSAs FAFSA on the Web Paper FAFSA

© NASFAA FAFSA on the Web Complete the FAFSA on the Web at Processed more quickly than paper version Sophisticated on-line edits so that errors are less likely to be made Student and at least one custodial parent should get a federal PIN at

© NASFAA Application Filing Tips FAFSA on The Web Gather necessary documents ahead of time Complete a FAFSA on the Web Worksheet available at Allow ample time to complete form for submission by deadline Check the FAFSA for accuracy prior to submission

© NASFAA Application Filing Tips FAFSA on The Web Save all work periodically Sign the application using you and your parent’s PIN Print out a copy of the FAFSA before submitting data Keep a copy of the Submission Confirmation Page

© NASFAA File early and meet all deadlines Check the FAFSA for completeness and accuracy Sign and date FAFSA Make a copy of the FAFSA before mailing Mail the FAFSA in the self-addressed envelope provided in the application booklet –Do not write any comments on the FAFSA –Do not include letters, tax forms, or worksheets –Use regular mail (not Registered or Certified) Obtain a U.S. Postal Service Certificate of Mailing (cost is only $0.90) Application Filing Tips Paper FAFSA

© NASFAA Student Aid Report (SAR) Regardless of whether you use FAFSA on the Web or submits a paper FAFSA, a SAR will be sent to you –A link to an electronic SAR will be sent if you provide an address –A paper SAR will be mailed if you do not provide an address Data will be sent to each college or university you listed in Question #97

© NASFAA What Happens Next? You and the colleges you listed receive information from federal processor  You should review your SAR for important information and accuracy of data  Colleges match admission records with financial aid applications and determine aid eligibility  Colleges mail notices of financial aid eligibility to admitted students who have completed all required financial aid forms

© NASFAA Special Circumstances Contact the Financial Aid Office if there is: –Loss or reduction in parent or student income or assets –Death or serious illness –Unusual medical or dental expenses not covered by insurance –Reduction in child support, Social Security benefits or other untaxed benefit –Financial responsibility for elderly grandparents –Any other unusual circumstances that affect a family’s ability to contribute to higher education

© NASFAA Summary of the Financial Aid Process Submit all required forms, including FAFSA, by each college’s published deadlines Submit the FAFSA before May 1 st for MassGrant consideration Keep a copy of all forms submitted Review your SAR

© NASFAA Summary of the Financial Aid Process Watch for financial aid award notifications from colleges to which the student has been admitted Be sure to apply for financial aid this year and every year as soon as possible after January 1 to receive the best financial aid award possible ASK QUESTIONS!

© NASFAA Resources u Program Support, FAFSA Line-by-Line Presentation – FAFSA – Web version – FAFSA – Paper version –FAFSA – Paper version in Spanish and Somali –Foster Youth: Tips for Completing the FAFSA

© NASFAA Questions and Answers