Session #31

FAFSA
Free Application for
Federal Student Aid

Angela Smith
Bob Tschinkel
What is the FAFSA?
• Department of Education’s free
application for Title IV aid
–Collects applicant information
required by statute
–Processed by Department’s Central
Processing System (CPS)
• All students must complete unless
parent PLUS is only aid requested
Central Processing System
(CPS)
• Processes the FAFSA for use in
determining student eligibility
–Edits data for errors
–Calculates expected family
contribution (EFC)
–Sends output documents
•Paper or electronic output to
students
•Electronic file to schools
CPS
• Matches student information with other
databases
 Social Security Administration
 Department of Homeland Security
(DHS)
 Selective Service
 Department of Veterans Affairs
 Department of Justice
 National Student Loan Data System
Methods For Filing FAFSA
Student
• Paper application
• FAFSA on the Web
• Renewal FAFSA on the Web
School
• FAA Access to CPS on-line
 Must have completed and signed
copy of paper FAFSA
www.fafsa.ed.gov
www.pin.ed.gov
www.fafsa.ed.gov/FOTWWebApp/faa/faa.jsp
 FAFSA Instructions

Available online at

http://studentaid.ed.gov/students/publi
cations/completing_fafsa/index.html
FOTW Worksheet
• Recommended for applicants using
FAFSA on the Web (FOTW)
• Paper worksheet that follows web
version of FAFSA
• FAFSA Worksheets A, B, C are
included in FOTW Worksheet
CPS Web Applications Demo
http://fafsademo.test.ed.gov
– User ID – eddemo
– Password - fafsatest

• Demos both FAFSA on the Web and FAA

Access to CPS on-line
• Ideal for new staff, demonstrations, or
practice
• Demo student information is preloaded
FAFSA Sections
1. General Student Information
2. Student/Spouse Income and Assets
3. Student Dependency Status
4. Parent Information (dependent
student only)
5. Household Size and Number in
College (independent student only)
6. School Information
7. Signature Requirements
FAFSA Data
• Income is “base year” – calendar
year prior to award year
• Marital status, household size and
assets are reported as of date of
application
Social Security Number
Student enters incorrect SSN
• Must correct SSN in question # 8.
– CPS identifier will carry original SSN
– COD will carry corrected SSN
• Student enters SSN and first two letters of last
name that match what’s already in CPS database
– If SSN entered incorrectly, must file new
FAFSA
– If SSN entered correctly, must file “correction
application”
Call 703-284-5666
Student’s Marital Status - #16
• Marital status at time of application
remains for entire award year
• May not change marital status once
application is filed

–No change to dependency status

or household size
Questions 29 & 30
• Parent’s education level requested
because some states award aid to
first generation college students
• Answers not required for EFC
processing
Question 31 - Drug Conviction
•An applicant loses
eligibility for Title IV
aid if was convicted for
a drug related offense
that occurred while
enrolled and receiving
Title IV aid
–Date of ineligibility
begins on date of
conviction
Questions 32b & 76b
• Reported estimated income
information – tax return not yet filed
• Estimated information not
automatically conflicting information
 After April 15 of award year, CPS
requests that families “correct”
information to reflect actual tax
information
Questions 44 & 88
• Qualified education benefits include
Coverdell savings accounts, state prepaid
tuition plans and 529 prepaid and savings
plans
 All are included in assets on FAFSA
 Report as asset of dependent student’s
parent if parent is owner of the account
or plan
 Never considered an asset of a
dependent student
 Report as asset of independent student
if student/spouse owns the
account/plan
Family Ownership of Small
Business
Asset Questions 45 and 89
• Exclude from assets on FAFSA any
part of a family owned and
controlled business with no more
than 100 FT employees or FTE’s
Dependency Questions
Step Three
• 8 criteria set in the law
• Student must be able to answer
“yes” to at least one question to be
independent
Dependency Questions
1. Must be age 24 or older by
December 31 of award year
2. Enrolled in a master’s, doctorate,
or graduate certificate program
3. Married as of date of application
 Common law marriage in states
where recognized
 Same-sex marriages are not
recognized for Title IV purposes
Dependency Questions
1. Have children for whom provide
more than 50% support
2. Have dependents other than
children and spouse for whom
provide more than 50% support

How do you measure 50%?

Dependency Questions
1. Both parents deceased OR ward of
court at age 18
2. Serving on active duty in U.S.
armed forces for purposes other
than training
3. Veteran of U.S. Armed forces
 Served active duty for purpose
other than training and discharged
other than dishonorably
 Database match with VA
Who Is A Parent?
• Biological and adoptive
• Stepparent currently married to
above
• Legal guardians cannot be parents
on the FAFSA
• Grandparents cannot be parents on
the FAFSA unless they have legally
adopted the student
Questions 55-62
• Parent’s SSN, Name, and DOB
 Would be used if IRS database
match begins
 At least one parent’s data must
match Social Security
administration database
 Parent without SSN must enter all
zeroes in SSN field
Federal Means-Tested Benefits
Questions 71-75 & 92-96
• Additional criteria for simplified
needs test and automatic zero EFC
• Is not conflicting information if
reports these but does not report
corresponding income on
Worksheets A
• Answering these questions will not
affect receipt of these programs
 EXERCISE
FAFSA QUESTIONS
Resources
• 2007-2008 FSA Handbook,
Application and Verification Guide
(AVG), Chapters 1 & 2
• 2007-2008 FAFSA & instruction
booklet
Contacts
We appreciate your feedback and
comments.
We can be reached at:
Angela Smith
• Phone: (312) 730-1552
• Email: angela.smith@ed.gov

Bob Tschinkel
• Phone: (646) 428-3757
• Email: robert.tschinkel@ed.gov
Please provide any comments
regarding this training or the
trainers to:

Jo Ann Borel
Title IV Training Supervisor
joann.borel@ed.gov
202-377-3930