1. Deciphering the Mysteries of the FAFSA Tom Melecki, PhD Director, Financial Aid Policy The University of Texas at Austin

2. Today... Why the FAFSA? Why the FAFSA? Why is it so complicated? Why is it so complicated? Common FAFSA errors Common FAFSA errors What’s next for FAFSA? What’s next for FAFSA?

3. Why the FAFSA?

4. FAFSA replaces ACT/CSSFAFSA replaces ACT/CSS 1992 ACT competes with CSSACT competes with CSS 1974 College Board forms CSSCollege Board forms CSS 1954

5. Why the FAFSA ?

6. Why is it so complicated?

12. Common FAFSA errors

13. 6. Missing parent information Mostly when parents are divorced/ separated Custodial parent Stepparent “Other” parent

14. Solutions... Custodial parent Parent the student lived with more during past 12 months, but If student did not live with one parent more than other Parent who last provided more financial support

15. Solutions... Stepparent If divorced/separated/widowed parent is remarried New spouse is stepparent Answer all parental questions about both parent and stepparent

16. Solutions... “Other” parent Legal parents living together Biological/adoptive Same-sex legal parents married and living together Unless they adopted, not grandparents, aunts, uncles, foster parents, legal guardians, widowed stepparents

17. 5. Misreported assets Overstate net worth Cash, checking, savings Investments Business/farm Report parents’ retirement assets

18. Solution... Report investment net worth Net worth = current value minus debt Investments are not family home Except part with own entrance, bath, and kitchen if rented to non-family

19. Solution... Don’t report certain assets Life insurance Retirement 401(k) plans Annuities Keogh plans Non-education IRAs Pension plans Funds under Uniform Gift to Minors Act (UGMA) or Uniform Transfer to Minors Act (UTMA)

20. 4. Inaccurate income Incorrect AGI Federal income tax Forgot to report Untaxed income

21. Solution... AGI and federal income tax 1040 form Lines 37 and 56 1040A form Lines 21 and 37 1040EZ form Lines 4 and 10 Watch out for misplaced decimal points!

22. Solutions... Untaxed income Instructions for FAFSA Item 94 Half of untaxed income answers can be pulled straight from lines on federal income tax return

23. 3. FAFSA filed too late After priority deadline for State Institution

24. Solution... Do some quick research! Most state priority deadlines on right side of first page of FAFSA Institutional deadlines on financial aid office websites

25. 2. Wrong identity Name: Misspelled, incomplete, unofficial Social security number: Incomplete, digits transposed

26. Solution... Use social security card Complete FAFSA using social security card’s: Exact name Social security number

27. 1. FAFSA never filed We’re not eligible, anyway: Income too high Home too valuable Too much saved for retirement Takes too long Too much work to complete

28. Solution... Always submit a FAFSA! 2 million students could have qualified for Pell Grant had they submitted FAFSAs 1.3 million would have qualified for maximum Pell Grant FAFSA-on-line takes only about 30 minutes

29. Keep good financial records! Prior year’s W-2 forms Federal income tax returns Untaxed income records Current Bank statements/investment records Social Security Card Driver's license Alien registration/permanent resident card

30. Complete it carefully Read all FAFSA Questions Instructions Double-check every answer Do it again Do it again some more!

31. Whenever in doubt Go to fafsa.ed.gov Step-by-step instructions Use FAFSA4caster View instructional videos Call for help Government at 877-207-3050 Financial aid office

32. What’s next for FAFSA?

33. FAFSA Reforms? FAFSA Parent Income = Family Size = 2-Question FAFSA Prior-Prior Year FAFSA