1. Session 32 Free Application for Federal Student Aid Thomas Threlkeld Anita O. Wojick

2. 2 Topics FAFSA Overview –What is the FAFSA? –Why we must complete it? How to Apply –Paper FAFSA –FAFSA on the Web –FAA Access to CPS Online Seven Step Process HERA Changes –Drug Conviction Eligibility –Qualified Tuition Benefits –Family Owned Business –Active Military Duty FAFSA Exercise Other Interest Sessions and Training Questions

3. 3 FAFSA Overview FAFSA collects applicant information required by statute and is sent to the Central Processing System (CPS) which –Calculates a family’s Expected Family Contribution (EFC), or its ability to pay for the cost of attendance (COA) at an eligible postsecondary institution and –Performs data matches against other federal databases to determine the applicant’s eligibility Social Security Administration Dept. of Homeland Security Selective Service NSLDS Veterans Administration

4. 4 FAFSA on the Web FAFSA.ed.gov

5. 5 Federal Student Aid PIN Web site

6. 6 FAA Access to CPS Online http://www.fafsa.ed.gov/FOTWWebApp/faa/faa.jsp

7. 7 http://fafsademo.test.ed.gov FAFSA on the Web and FAA Access to CPS Online Demo Site The 2006-2007 CPS Web Applications Demo System offers demonstration versions of FAFSA on the Web (FOTW) and FAA Access to CPS Online. –Staff can learn about FOTW and FAA Access to CPS Online, including the new Return of Title IV Funds on the Web. –Test student IDs and PINs are available for preloaded renewal application and correction records for both the FOTW and FAA Access demos. Username: eddemo Password: fafsatest

8. 8 Seven Step Process 1.General Student Information 2.Student/Spouse Income and Assets 3.Student Dependency Status 4.Parent Information (dependent students only) 5.Household Size and Number in College (independent students only) 6.School Information 7.Signature Requirements

9. 9 Drug Conviction Eligibility Question 31 An applicant loses eligibility for Title IV aid only if the drug related offense for which he or she was convicted occurred while the student was receiving Title IV aid. –Date of ineligibility still begins on date of conviction Effective July 1, 2006 for the 2006-2007 Award Year

10. 10 Qualified Education Benefits Questions 44 and 88 Qualified Education Benefits now include: –Coverdell education savings accounts and 529 prepaid tuition and 529 savings plans Value is equal to refund value of any credits or certificates purchased –Prepaid tuition plans from a state Value is equal to current balance of the account

11. 11 Qualified Education Benefits Benefit is reported as an asset of the parent of a dependent student –Only if the parent is the owner of the account or plan Not considered an asset of a dependent student Considered asset of an independent student if that student owns the plan

12. 12 Family Ownership of Small Business Questions 45 and 89 Exclude from assets in need analysis any part of a family owned and controlled business with no more than 100 FT employees or FTE’s

13. 13 Active Duty Military Now Independent Students Question 54 HERA adds the following individuals to those that are considered independent –Serving on Active Duty in the Armed Forces for other than Training Purposes –National Guard or Reserves called to Active Duty For other than training purposes, and Activated by Presidential Order Authority Effective July 1, 2006 for the 2006-2007 Award Year

14. 14 EXERCISE FAFSA QUESTIONS

15. 15 Other Resources 2006-07 FSA Handbook, Application and Verification Guide (AVG) Dear Colleague Letters and Electronic Announcements on IFAP (Information for Financial Aid Professionals) –For more information related to the changes created by Higher Education Reconciliation Act (HERA) Interim Final Regulations resulting from the HERA published August 10, 2006 and Final Regulations published November 1, 2006

16. 16 Additional Interest Sessions Session 10: General Provisions Update: Changes made by the HERA Session 12: Use Self-Assessments and Evaluation Session 14: Working with Veterans Affairs to help Students Session 24: FAFSA Simplification - What does that mean and how do we get there? Session 28: FAA Access to CPS Online (hands on)

17. 17 Additional Beginner Sessions Session 33 - Expected Family Contributions (EFC) Session 34 - The Institutional Student Information Record (ISIR) Session 35 - Awarding Aid Session 36 - Disbursing Aid

18. 18 Additional Beginner Sessions Session 37 - IFAP, NSLDS, COD, FAA Access to CPS Online Session 38 - Financial Aid Professionals (FAP) Portal and Beyond - How We Communicate With You? Session 39 - Uncover the Mysteries of How a Law Becomes Operational

19. 19 Additional Training HERA –There are changes to how institutions determine the cost of attendance, changes to elements of the need analysis formula, to student eligibility, program eligibility, institutional eligibility, and the return of Title IV funds calculation. Many of these changes take effect with the 2006-07 award year. Check FSA Training Website for dates and locations of training http://www.ed.gov/offices/OSFAP/training/index.html

20. 20 Contacts We appreciate your feedback and comments. We can be reached at: Anita.Wojick@ed.gov Phone: (617) 289-0130 Thomas.Threlkeld@ed.gov Phone: (617) 289-0144