Common Questions on the FAFSA - for professionals who work with students

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Common Questions on the FAFSA

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Common Questions When Completing the FAFSA…

Dependency StatusWhen is a student

considered “dependent” and, therefore, must include parental information on the

FAFSA?

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Born before Jan. 1, 1992?

When is a student considered…

Married?

Working on a master’s or professional program?

On active duty or a veteran of the US Armed Forces?

Have children or dependents they are providing more than half the support for?

An orphan, ward of the court, or in foster care at any time since age 13?

Have a legal guardian or emancipated by the court?

An unaccompanied youth who is homeless or in danger of becoming homeless?

If student answers NO to all questions, they are dependent and must

provide parental information on the FAFSA.

Dependent?

“Homeless” definitions

■ Unaccompanied:– not living in the physical custody of a parent or guardian

■ Youth– 21 years of age or younger or are still enrolled in high school

as of the day they sign the FAFSA

‒ Living in shelters, parks, motels, or cars - or temporarily living with others • If fleeing an abusive parent, may be

considered homeless even if parent would provide support and a place to live

■ Homeless:

Parents’ Marital StatusIn certain circumstances,

whose parental information should be included on the

FAFSA?

Parental Marital Status

Sarah’s parents are married and are living together.

She should report information for both parents on the FAFSA.

Same-sex couples should report their status as married if legally married in a state that permits same-sex marriage, regardless of where they reside.

Parental Marital Status

Eli lives with his mother and step-father.

He should report information for both his mother and step-father on the FAFSA.

Abbie’s parents are not married, but they live together.

She should report information for both parents on the FAFSA.

Parental Marital Status

Michael’s parents are divorced and do not live together.

He should report information only for parent he lived with the most in the last 12 months.

If a student did not live with one parent more than the other:• give information about the parent who provided more financial

support during past 12 months, or • during the most recent year the student actually received support

from a parent.

This is also the case with parents who are separated and not living with each other.

Other Parent Marital Status Considerations

■ Divorced but living together– Select “Unmarried and both parents living together”

– Answer questions about both parents

■ Separated but living together– Select “Married or remarried,” not “Divorced or separated”

– Answer questions about both parents

■ Widowed– Report only surviving parent’s information

– Notify college if death occurs after FAFSA is filed

Other Parent Marital Status Considerations

■ Grandparents, foster parents, legal guardians, aunts, and uncles are not considered parents on the FAFSA unless they have legally adopted the student.

“Number in household”Who’s considered a

“member of the household” when completing the FAFSA?

Who’s included in“Number in Household?”

Student – even if not living with parents.

Parents

Parents’ other children, if:• parents will provide more than half of their

support between July 1, 2015 and June 30, 2016• children are “dependent”

Other people if they live with the parents, the parents provide more than half of their support, and the parents will continue to provide more than half of their support between July 1, 2015 and June 30, 2016

Special Family SituationsWhat circumstances might

affect the FAFSA?

Special family situations that can impact the FAFSA

Unusual circumstances– Parent’s loss of employment– Significant medical/dental expenses

Change in student’s marital status after filing FAFSA– At the discretion of the college

Student should contact the college financial aid office.

Deferred Action for Childhood ArrivalsFAFSA considerations for children of undocumented immigrants

Deferred Action for Childhood Arrivals (DACA)

■ DACA is an American immigration policy – allows certain illegal immigrants who entered the country

before their 16th birthday and before June 2007 to receive a renewable two-year work permit and exemption from deportation

Deferred Action for Childhood Arrivals (DACA)

■ Students approved for DACA are assigned a Social Security number

■ Although not eligible for federal financial aid, students can still complete a FAFSA:– Enter Social Security number– Answer “Are you a U.S. citizen?” as “No, I am not a citizen or

eligible noncitizen”– May be eligible for state or college aid

• Not eligible for state aid in Nebraska (Nebraska Opportunity Grant) – May help access other types of aid

■ Parents without a Social Security number:– Use 000-00-0000

What are considered “assets” on the FAFSA?

Checking Savings Stocks

Bonds CDs Mutual Funds

Rental Property

2nd Residence

College Savings Plans

Families must include these assets:

*Qualified Retirement Accounts*Primary Residence

What assets are NOT included?

Exclude value IF…They own and control the majority interest in the business and employ fewer than 100 people

What if the family has a business?

Exclude value if:

• They live on the farm and operate it and it is their main source of income.

Include value if:• Receive rent from farm ground or pasture from

someone else• Member of family farm partnership or corporation

and do not participate in running the farm

What if they have a farm?

Other FAFSA details:• IRS Data Retrieval• Estimated taxes

• PIN

IRS Data Retrieval

■ Parent and student can transfer tax information directly from the IRS to the FAFSA

■ Need to have exact address as it appears on the tax return■ Two-week processing time for electronic filers■ Will not need to provide tax forms if selected for verification■ Can still input tax information manually

Using Estimated Tax Information

■ Can use estimated or previous year’s tax information on FAFSA

■ Will need to update FAFSA using current tax information as soon as available

Department of Education PINpin.ed.gov

■ Each student needs a PIN■ One parent needs a PIN

(if parent information is required) – Parent with multiple

students in college only needs one PIN

■ Use PIN as signature on FAFSA, sign student loan promissory note, access National Student Loan Data System

PIN changes coming…

■ Changes to PIN coming in April ■ Student and parent will need to register for a

Federal Student Aid ID (FSA ID)– Will replace the PIN– Users will be prompted to sign up when

accessing any Federal Student Aid website (FAFSA, NSLDS, FSA, studentloans.gov)

– Will include challenge questions– Verify email address

EducationQuest.org

■ FAFSA Tools at EducationQuest.org– FAFSA Checklist– FAFSA Tutorial– FAFSA Demo– IRS Data Retrieval video

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