1. Financial Aid 201 August 10, 2011 Mary Kay Freshour Associate Director of Financial Aid Otterbein University

2. Verification Process Selection : Random, Error Prone, and Institutional Verification Worksheet (required) Parent (Step-Parent) 2010 Federal Taxes * Student 2010 Federal Taxes * W-2’s for both (as requested) Other forms as requested Schedules from tax returns, divorce/separation agreement, etc. * IRS Tax Retrieval used unchanged

3. Verification Process Cont Verify once all information is received Make corrections to ISIR Revise Financial Aid Award if needed Confirm Financial Aid once corrected valid ISIR is received

4. Verification Items Required to Verify 5 major data elements –Adjusted Gross Income –U.S. income tax paid –Certain untaxed income and benefits –Number in household –Number enrolled in college

5. Verification Issues Using Step-Parent Information Household members (support at least 51%) Number of family members in college (not parent) Untaxed income Independency (more detail later)

6. Verification Issues cont. Independent (Birth Date, Married, Veteran of armed services, Dependent Child*, Graduate Student, or Dependent other than a child or spouse*) –Verification worksheet completed with copy of tax return, other information as needed by the school set up by their policy. * Support more the 50%

7. Verification issues cont. Other independent questions is up to the policy of the school on what documentation they require. –Ward of court / guardianship papers –Emancipated youth (not emancipated for child support)* –Homeless youth documentation (High School homeless liaison) * Ohio does not have emancipated youth law

8. Untaxed Income and Benefits Specific types to “verify” –Child Support –IRA/Keogh/Pensions - untaxed deductions –Interest on tax-free bonds Additional other untaxed income to verify - All other untaxed income on tax return - Living allowance, money received, Veteran non-educational benefits, making work pay etc.

9. Tax Return Data Conflict Some examples that must be resolved: –Married filing separately; but both claimed “Head of Household” –Student claimed self as exemption, but so did the parent –A student claims not required to file but earned $30,000 from work –Married filing separate on tax return but FAFSA indicated single –Number in College includes parent

11. Special Circumstance / Professional Judgment (PJ) Must complete verification prior to exercised PJ (2012-13)

12. Special Circumstance / PJ Loss of employment/Income –One time withdrawal –Overtime –Child Support –Loss of Job / retirement Divorce / Separation High Medical Costs Parent In College Death of Parent Tuition payments for Private Post Secondary Schools Dependency override **

13. Special Circumstance/PJ Cont. Forms(needed but not limited to) Special Circumstance Request Form Verification Form Last Pay Stub, letter of dismissal, unemployment benefits statement Divorce Decree or Separation agreement, separate address statement, letter from lawyer Child Support last payment letter Break down of Medical Costs or copy of schedule A Request further information if needed

14. Special Circumstance/ PJ Cont. Case by Case review by committee or individuals Review and determine according to school policy the course of action, it is not limited A one time/year award change Revise Financial Aid Award

15. Independent Questions FAFSA 11-12 Effective 7/1/09 = Orphan, in foster care, or ward of the court at any time when the student was 13 years of age or older An emancipated minor or in a legal guardianship as determined by the court Unaccompanied youth who is homeless or who is at risk of homelessness and is self- supporting. Age, dependent Child, armed services, grad student

16. Dependency Override Check with each College Financial Aid office regarding their procedure Special Circumstance Form Letters of Explanation and documentation ex: supporting letters or student situation, court documents Approved override done by FA official

17. Dependency override cont. Cannot override if singly or in combination, may qualify as unusual circumstances: –Parent’s refuse to contribute to the student’s education –Parent’s are unwilling to provide information on the FAFSA or for verification –Parent’s do not claim the student as a dependent for income tax purposes –Student demonstrates total self sufficiency –Student has a child and not providing more than 50% support. –Student is 18 and no one is responsible for student.

18. QUESTIONS?