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? n n Federal Pell Grant n n Federal Supplemental Educational Opportunity Grant (SEOG) n n Federal Work-Study n n Federal Perkins Loan n n Federal Family Education Loan n n Federal Direct Loans

How to Apply n n Free Application for Federal Student Aid (FAFSA) – –Paper application – –Web-based application

Free Application for Federal Student Aid (FAFSA) n n Initial step in the application process n n Core document to apply for financial aid n n Used to calculate an expected family contribution (EFC) n n Confirms certain eligibility requirements

Free Application for Federal Student Aid (FAFSA) n n Step One: Student demographic information n n Step Two: Student financial information n n Step Three: Dependency status questions n n Step Four: Parent financial information n n Step Five: Independent student household information n n Step Six: List of schools to receive results n n Step Seven: Signatures and certifications

How Is The Data Used? n n In a statutory formula called the Federal Methodology n n Looks at income, assets and size of family to determine family’s ability to pay for education n n Result is called the Expected Family Contribution (EFC)

The Paper FAFSA n n Color of the FAFSA – –Green for students (Pantone 344U) – –Purple for parents (Pantone 263U) n n Questions follow same order as last year n n Will be sent to high schools in November n n Counselors may request additional forms by calling EDSPUBS or

Changes n n Added sentence to Certification Statement warning students not to disclose PIN to anyone n n Added gray-shaded “MMDD” or “MMDDYY” in all date fields to help students and parents complete correctly n n Encourages families to correct estimated tax return data after tax return for 2004 is completed

FAFSA on the Web n n Most popular and recommended method of filing n n Netscape 6.2 or higher or Internet Explorer 5.0 or higher n n Transmitted directly to Central Processing System (CPS)

FAFSA on the Web n n Apply n n Reapply n n Go to PIN web site n n Check status of FAFSA n n View SAR information n n Make corrections

FAFSA on the Web n n Certification page will require students to agree not to disclose their PIN to anyone n n Parents with multiple children in college will be able to transfer their information to other children’s applications

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

Demonstration Site FAFSA on the Web n n Available December 5, 2004 – –To access, go to – –Enter » »User name: eddemo » »Password: fafsatest

PIN Web Site n n Serves as electronic signature on ED documents, including electronic promissory notes n n Used to gain access to ED systems, including – –Corrections on the Web – –NSLDS – –Direct Loan Origination – –Direct Loan Servicing – –Loan Consolidation

PIN Web Site n n 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 n n If both the dependent student and parent(s) have a federal PIN it is not necessary to sign and mail a signature page n n 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 n n Print signature page and submit within 14 days n n If signature page not received by Central Processing System (CPS) within 14 days, student receives rejected Student Aid Report (SAR) n n Rejected SAR must be signed and submitted to CPS

Student Aid Report (SAR) n n Paper SARs will be printed on green paper n n Only last 4 digits of parent’s SSN will display on paper and electronic SARs n n Displays official EFC n n Submit to college only if requested

Student Aid Report (SAR) n n Paper application without student’s address will result in paper Student Aid Report (SAR) n n Paper application with student’s address will result in with web site for “SAR on the Web”

Corrections on the Web n n Student’s PIN required to access n n PIN serves as student’s signature n n COTW with paper or electronic application n n Parents must have PIN to correct parent information n n Pop-up message will appear when student tries to correct transaction already corrected by a school

CPS Database Matches n n Social Security Administration (SSA) n n Bureau of Citizenship and Immigration Services (BCIS)-formerly Immigration and Naturalization Services (INS) n n Selective Service n n Veterans Administration n n National Student Loan Data System (NSLDS)

Avoid Errors! n n Errors on the FAFSA or supplemental forms may delay application processing and result in the loss of financial aid funds. n n Encourage students/parents to read the instructions and complete the forms carefully!

Independent Student Criteria n n Born before January 1, 1982 n n Working on a master’s or doctorate program n n Married n n Has child(ren)/dependents for whom he/she provides more than half the support n n Both parents are deceased n n Is/was a ward of the court until age 18 n n Veteran of the U.S. Armed Forces

Supplemental Forms n n Institutional application n n CSS Financial Aid PROFILE n n Stafford loan application (bank- funded)

Counselor Resources n n National Association of Student Financial Aid Administrators ( – –Counseling Tools n n Student Aid on the Web n n FSA for Counselors – –Online information for middle school, high school and TRIO counselors

Additional Resources n n 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, ;